Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Ukraine

Ukraine

Revenue in the Application Outsourcing market is projected to reach US$299.60m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.31%, resulting in a market volume of US$319.80m by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$15.40 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 demand for Application Outsourcing services in Ukraine has been steadily increasing over the years.

Customer preferences: Ukrainian companies are increasingly looking to outsource their application development and maintenance services to third-party vendors. This is largely due to the cost-effectiveness of outsourcing these services to countries like Ukraine, which offer high-quality services at a lower cost compared to Western European countries.

Trends in the market: One of the major trends in the Ukrainian Application Outsourcing market is the increasing demand for custom software development services. Companies are looking for tailored solutions that meet their specific business needs, rather than off-the-shelf software products. Another trend is the growing popularity of cloud-based solutions, which offer greater flexibility and scalability compared to traditional on-premise solutions.

Local special circumstances: Ukraine has a highly skilled workforce in the IT sector, with a large pool of talented software developers and engineers. The country also has a well-established IT infrastructure, with a number of tech hubs and innovation centers. Additionally, the Ukrainian government has been actively promoting the development of the IT industry in the country, offering tax incentives and other benefits to companies in the sector.

Underlying macroeconomic factors: The Ukrainian Application Outsourcing market is benefiting from a number of macroeconomic factors, including the country's relatively low labor costs and favorable exchange rate. Additionally, the ongoing digital transformation of businesses across various industries is driving demand for IT services, including application outsourcing. The COVID-19 pandemic has also accelerated the shift towards digitalization, with companies increasingly relying on IT solutions to support remote work and online operations.

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.