Application Outsourcing - Southeast Asia

Revenue in the Application Outsourcing market is projected to reach US$2.46bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 2.54%, resulting in a market volume of US$2.79bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$7.09 in 2024.
In global comparison, most revenue will be generated United States (US$42.86bn in 2024).

Definition :
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications. Furthermore, it includes the development (production), support, and maintenance of such software products and services by contracted service providers.

Application outsourcing allows organizations to leverage specialized skills, accelerate development timelines, reduce costs, and ensure efficient management of their applications.

Additional Information:

The Application Outsourcing market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include NEC, Accenture, Capgemini, VMware, and Hewlett Packard Enterprise.

For more information on the data displayed, use the info button right next to the boxes.

Concept and design of software applications, such as IBM iX (IBM Interactive Experience), Tata Consultancy Services (TCS), and EPAM Systems
Development and maintenance of software products, such as Infosys, Wipro, and HCL Technologies
Requirement assessments, such as ThoughtWorks, Accenture, and Intellectsoft

Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
Web hosting, such as GoDaddy, Bluehost, and Amazon Web Services
Strategic Technology Planning, such as BCG (Boston Consulting Group), EY (Ernst & Young), and PwC (PricewaterhouseCoopers)
Support or maintenance for business-internal software products

The demand for Application Outsourcing services in Southeast Asia has been steadily increasing in recent years.

Customer preferences: Customers in Southeast Asia are increasingly looking for cost-effective solutions to improve their business processes and increase efficiency. Application Outsourcing provides a cost-effective way to access skilled professionals and advanced technology without the need for significant investment in infrastructure.

Trends in the market: The Application Outsourcing market in Southeast Asia is dominated by countries such as India, China, and the Philippines, which have a large pool of skilled professionals and a strong IT industry. However, other countries in the region, such as Vietnam and Indonesia, are also emerging as key players in the market.In Vietnam, the government has been investing heavily in developing the country's IT infrastructure, which has led to a growing number of IT companies and a skilled workforce. As a result, Vietnam has become an increasingly popular destination for Application Outsourcing services.In Indonesia, there has been a significant increase in the number of startups and small and medium-sized enterprises (SMEs) in recent years. These companies are increasingly looking for cost-effective solutions to improve their business processes, which has led to a growing demand for Application Outsourcing services.

Local special circumstances: One of the key challenges facing the Application Outsourcing market in Southeast Asia is the lack of standardization in the industry. Each country has its own regulations and standards, which can make it difficult for companies to operate across borders.Another challenge is the shortage of skilled professionals in some countries. While countries like India and the Philippines have a large pool of skilled professionals, other countries in the region are struggling to keep up with demand.

Underlying macroeconomic factors: The growth of the Application Outsourcing market in Southeast Asia can be attributed to a number of underlying macroeconomic factors. One of the key factors is the region's strong economic growth, which has led to an increase in demand for IT services.Another factor is the region's young and tech-savvy population, which has created a large market for digital services. As more businesses look to digitize their operations, the demand for Application Outsourcing services is likely to continue to grow.In addition, the region's strategic location and growing connectivity make it an attractive destination for companies looking to outsource their IT services. As technology continues to advance and companies become more globalized, the Application Outsourcing market in Southeast Asia is likely to continue to thrive.

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.