Application Outsourcing - Southern Asia

Revenue in the Application Outsourcing market is projected to reach US$2.08bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.92%, resulting in a market volume of US$2.65bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$2.87 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.

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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 Southern Asia has been steadily increasing in recent years.

Customer preferences: Customers in Southern Asia are increasingly turning to Application Outsourcing services due to the cost savings and increased efficiency that these services offer. Additionally, customers are seeking out providers who can offer a wide range of services, from application development to maintenance and support.

Trends in the market: India is the largest market for Application Outsourcing services in Southern Asia, with a large number of global companies outsourcing their application development and maintenance needs to Indian providers. However, other countries in the region, such as Pakistan and Bangladesh, are also seeing an increase in demand for these services.One trend that is emerging in the Southern Asian market is the rise of cloud-based application outsourcing. As more companies move their operations to the cloud, they are seeking out providers who can offer cloud-based application development and maintenance services.Another trend that is emerging in the market is the increasing use of artificial intelligence and machine learning in application development. Providers in the region are investing heavily in these technologies in order to stay competitive and meet the evolving needs of their customers.

Local special circumstances: One of the key challenges facing providers in Southern Asia is the shortage of skilled workers. While there is a large pool of talent in the region, there is also a high level of competition for skilled workers, which can make it difficult for providers to attract and retain top talent.Another challenge facing providers in the region is the need to comply with data privacy regulations. As more companies outsource their application development and maintenance needs to Southern Asian providers, there is a growing need to ensure that these providers are complying with local and international data privacy regulations.

Underlying macroeconomic factors: The growth of the Application Outsourcing market in Southern Asia is being driven by a number of macroeconomic factors, including the region's large and growing population, its increasing levels of economic development, and its highly skilled workforce.Additionally, the region's relatively low labor costs and favorable business environment are making it an attractive destination for companies looking to outsource their application development and maintenance needs.Overall, the Application Outsourcing market in Southern Asia is expected to continue to grow in the coming years, driven by the region's strong economic fundamentals and the increasing demand for these services among customers in the region and around the world.

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.