Global Application Outsourcing Market: Introduction
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.
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Global Application Outsourcing Market – Dynamics
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.
Access to Specialized Resources and Skills
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.
Unawareness among SMEs
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.
North America to Dominate the Global Application Outsourcing 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.
COVID-19 Impact on the Global Application Outsourcing Market
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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Global Application Outsourcing Market – Competition Landscape
- In May 2019, IBM Corporation and Vodafone-Idea signed a five year technology outsourcing contract worth US$ 700-800 Mn. 5-year strategic collaboration with IBM opened new opportunities for the company to partner together in domains like cloud, AI and IoT.
Incorporated in 1911, IBM manufactures and sells computer hardware and software and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. The company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems, and Global Financing.
Global Application Outsourcing Market: Segmentation
The global application outsourcing market can be segmented based on:
- Enterprise Size
Global Application Outsourcing Market, by Enterprise Size
Based on enterprise size, the global application outsourcing market can be divided into:
- Small & Medium Enterprise
- Large Enterprise
Global Application Outsourcing Market, by Industry
In terms of Industry, the global application outsourcing market can be segregated into:
- Consumer Electronics
- Life Science
- IT & Telecom
Regional analysis of the global application outsourcing market includes:
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East & Africa
- South America
- Rest of South America
Disclaimer: This ongoing market research study is a meticulously planned activity where a broad array of factors and aspects that shape the marketing environment and industry are taken into account. However, keeping in mind the constantly changing nature of business dynamics and changing strategic intents, we are always actively making iterations and modifications in our approaches. As always, we are ready to tailor our insights and guidance to suit your requirements. Engage with us to know what more is there for your CXOs.