Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Americas

Americas

Revenue in the Application Outsourcing market is projected to reach US$49.01bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.61%, resulting in a market volume of US$50.52bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$97.22 in 2024.
In global comparison, most revenue will be generated in the United States (US$42,860.00m in 2024).

Key regions: Brazil, Germany, United Kingdom, Netherlands, China

Market

Region

Region comparison

Currency

Analyst Opinion

The Application Outsourcing market in Americas has been experiencing a steady growth over the past few years, driven by various factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in the Americas have been increasingly outsourcing their application development and maintenance needs to third-party service providers. This is mainly due to the need for cost optimization and the lack of in-house expertise. Additionally, customers are demanding more customized and flexible solutions that can be easily integrated into their existing systems.

Trends in the market: The United States is the largest market for application outsourcing services in the Americas, accounting for the majority of the revenue generated in the region. The country has a large pool of skilled professionals and a mature outsourcing industry, which has been driving the growth of the market. However, other countries such as Brazil and Mexico are also emerging as key players in the market, due to their growing IT industry and favorable government policies.

Local special circumstances: One of the major challenges faced by the application outsourcing market in the Americas is the shortage of skilled professionals. This has led to increased competition among service providers, resulting in a rise in the cost of outsourcing services. Additionally, data privacy and security concerns have also been a major issue in the region, with many customers hesitant to outsource their sensitive data to third-party providers.

Underlying macroeconomic factors: The Americas region has been witnessing a steady economic growth, which has been driving the demand for application outsourcing services. Additionally, the increasing adoption of cloud computing and mobile technologies has been a major driver of the market, as customers are looking for more flexible and scalable solutions. Furthermore, the ongoing digital transformation across various industries has also been driving the growth of the market, as companies are looking to modernize their IT systems and processes.In conclusion, the Application Outsourcing market in Americas is expected to continue its growth trajectory in the coming years, driven by the increasing demand for customized and flexible solutions, the shortage of in-house expertise, and the ongoing digital transformation across various industries. However, service providers will need to address the challenges posed by the shortage of skilled professionals and data privacy concerns in order to sustain this growth.

Methodology

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.