Market Size of Global Application Outsourcing Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.32 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Application Outsourcing Market Analysis
The Global Application Outsourcing market is expected to grow at a CAGR of 5.32% during the forecast period, 2022-2027. The ongoing emphasis on customer retention and engagement, increased demand for BFSI, and rising digital transformation are driving the application outsourcing market.
- IT companies provide application outsourcing services to other companies to outsource their business operations. These services involve testing, designing, and production of business applications. The assistance includes application re-engineering, application maintenance, support, web portal development, and data migration.
- Third-party companies take care of the businesses by monitoring business functions to avoid the burden of doing that work. Moreover, cloud computing has made the job easier, as it is cost-effective. Various end-users like banking, retail, and others are already using these services, driving the growth of the application outsourcing market.
- Various companies are looking for strategic partnerships to enhance their products and services. For instance, in May 2022, IBM signed a strategic collaboration agreement with Amazon Web Services to deliver IBM Software-as-a-Service on AWS. The partnership between IBM and AWS will provide clients with quick and easy access to IBM Software that spans automation, AI and data, security and sustainability capabilities, is built on Red Hat OpenShift Service on AWS (ROSA), and runs cloud-native on AWS.
- Furthermore, companies globally are looking to enhance and innovate their products to provide services to a broader customer base. For instance, in May 2022, IBM enhanced its Global Data Platform to address the challenges related to AI adoption. As per the Global AI Adoption Index 2021, data complexity and data silos are the top barriers to AI adoption.
- The Covid - 19 pandemic has moderately impacted the application outsourcing market. Lockdown and adoption of work from home by many companies have affected the adoption of application outsourcing and workflow of enterprises.
