Application outsourcing is a service which includes design, testing, release, or production of applications and systems maintenance service. In application outsourcing services, businesses delegate application work to a third-party company, in order to avoid the burden of doing that work in-house. This includes all kind of services from staff management to device maintenance and management. In this scenario, modern Internet technologies such as Software as a Service (SaaS) which enable more Web-delivered application handling, and other third-party services play a major role in bridging the gap between service provider and the utility gainer.
Competition in various industries across the globe concerning cost has increased exponentially. Asia Pacific with its cheap labor and operational cost has disrupted many industries such as semiconductors and chemicals. Application outsourcing enables transfer of application work to a third-party company to eliminate the extra in-house cost. The overall cost to company can be reduced and companies can prioritize the business significantly. The overall benefits at the macro level is thus driving the growth of application outsourcing.
One of the major driving factors of application outsourcing is it empowers the company to gain specialized expertise in application management. This enables the company to gain access to more opportunities through specialization and also helps the company to focus on the primary objective as well as prioritize the work more efficiently.
Regions such as South America and Asia Pacific which are the fastest growing regions face strong technological and digital gaps which lead to unawareness among business enterprises. The level of awareness among SMEs or micro businesses, and the network infrastructure to smoothly run application outsourcing at a remote location is not very effective. Unawareness about application outsourcing and poor network infrastructure of SMEs within these regions is hampering the growth of the market.
In terms of region, the global application outsourcing market can be divided into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America is expected to dominate the application outsourcing market during the forecast period due to strong adoption rate of outsourcing or rental models by business enterprises.
The COVID-19 pandemic is expected to moderately impact the global application outsourcing market for a short-term period. Lock down and the adoption of work from home by many companies has impacted the adoption of application outsourcing and workflow of enterprises.
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The global application outsourcing market can be segmented based on:
Based on enterprise size, the global application outsourcing market can be divided into:
In terms of Industry, the global application outsourcing market can be segregated into: