Application Outsourcing - Taiwan | Statista Market Forecast

Revenue in the Application Outsourcing market is projected to reach US$758.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.24%, resulting in a market volume of US$806.90m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$29.20 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

Amidst the global trend of outsourcing application development, Taiwan has also been experiencing a surge in demand for application outsourcing services.

Customer preferences: Companies in Taiwan are increasingly outsourcing their application development needs to third-party vendors due to the cost-effectiveness and flexibility of outsourcing. Outsourcing allows companies to focus on their core competencies while also having access to a wider pool of technical expertise. Additionally, outsourcing enables companies to quickly adapt to changing market conditions and customer needs.

Trends in the market: One trend in the application outsourcing market in Taiwan is the rise of cloud-based solutions. As companies look to increase their agility and scalability, cloud-based solutions are becoming increasingly popular. This trend is expected to continue as companies seek to reduce costs and improve their operational efficiency. Another trend is the increasing demand for mobile application development. With the growing popularity of smartphones and tablets, companies are looking to develop mobile applications to reach their customers on-the-go.

Local special circumstances: Taiwan has a highly skilled workforce in the technology sector, making it an attractive location for outsourcing. Additionally, Taiwan has a strong manufacturing industry, which has led to the development of a robust supply chain ecosystem that supports the technology sector. This ecosystem includes a wide range of component suppliers, contract manufacturers, and logistics providers, all of which contribute to the success of the application outsourcing market in Taiwan.

Underlying macroeconomic factors: Taiwan's economy has been growing steadily in recent years, driven by strong exports and domestic demand. This growth has created a favorable business environment for companies operating in Taiwan, including those in the application outsourcing market. Additionally, the Taiwanese government has been actively promoting the development of the technology sector, including through tax incentives and other measures aimed at attracting foreign investment. These factors are expected to continue supporting the growth of the application outsourcing market in Taiwan in the years ahead.

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.