The Application Outsourcing market in Sri Lanka has been growing steadily in recent years, driven by a combination of customer preferences, local special circumstances, and underlying macroeconomic factors.
Customer preferences: Sri Lankan companies are increasingly turning to outsourcing as a way to reduce costs and improve efficiency. This trend is particularly evident in the IT sector, where companies are looking to outsource application development and maintenance to third-party providers. Key drivers of this trend include the need to access specialized skills and expertise, as well as the desire to focus on core business activities.
Trends in the market: One of the key trends in the Sri Lankan Application Outsourcing market is the growing demand for cloud-based services. Many companies are looking to move away from traditional on-premise solutions and adopt cloud-based platforms, which offer greater flexibility, scalability, and cost-effectiveness. Another trend is the increasing use of agile development methodologies, which enable companies to develop and deploy software more quickly and efficiently.
Local special circumstances: Sri Lanka's relatively low labor costs and highly educated workforce make it an attractive location for outsourcing. The country has a large pool of skilled IT professionals, particularly in areas such as software development, testing, and project management. In addition, the government has implemented a number of initiatives aimed at promoting the IT sector and attracting foreign investment.
Underlying macroeconomic factors: Sri Lanka's economy has been growing steadily in recent years, driven by a combination of domestic consumption and foreign investment. The country has a young and growing population, with a large proportion of the workforce employed in the services sector. This has created a strong demand for IT services, particularly in areas such as e-commerce, mobile applications, and digital marketing. In addition, Sri Lanka's strategic location and strong ties to the Asia-Pacific region make it an attractive destination for companies looking to expand their operations in the region.
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.
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