Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Worldwide

Worldwide

Revenue in the Application Outsourcing market is projected to reach US$118.60bn in 2023.
Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 1.84%, resulting in a market volume of US$129.90bn by 2028.
The average Spend per Employee in the Application Outsourcing market is projected to reach US$34.08 in 2023.
In global comparison, most revenue will be generated in the United States (US$43,290.00m in 2023).

Key regions: United Kingdom, China, Germany, India, Italy

Market

Region

Region comparison

Currency

Analyst Opinion

The market for Application Outsourcing includes services like operations, support, and maintenance of enterprise applications. The customer benefits from a professional, high-quality application management offered by service vendors. Key players such as IBM, Accenture, Campgemini, VMware, and HPE are dominating the market, making up more than half of the market revenue. By using Application Outsourcing, companies reduce their IT budget and staff and avoid the usual high costs of managing enterprise applications. Ever since the wide adoption of digital telecommunication and the development of globalization, developing countries have become more attractive locations for companies when it comes to Application Outsourcing.

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.