Please Wait.....
Report
Global Application Outsourcing - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)
Market Report I 2025-04-28 I 100 Pages I Mordor Intelligence
The Global Application Outsourcing Market is expected to register a CAGR of 5.32% during the forecast period.
Key Highlights
- 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.
Application Outsourcing Market Trends
BFSI to have a significant share
- The growing base of new-age customers is compelling the banking, Financial Services, and Industrial Industry (BFSI) to redirect their efforts to provide a better customer experience. A minimal switching cost coupled with multiple players in the industry has made it easier for the customers to change their service providers easily. For higher customer retention and better profitability, the BFSI sector must offer its customers an engaging user experience and convenience. Technology-enabled solutions help companies deliver more accurate and personalized services and a superior customer experience.
- Fintechs may utilize big data to build thorough user-profiles and precise client segmentation strategies, allowing them to customize their services to their consumers' demands. Personalized services can be provided using advanced modeling approaches that take into account a person's risk perception, age, gender, financial circumstances, location, and, in some instances, relationship status.
- As per Crisil, the IT Industry will post a strong recovery with revenue growth of 11% in FY 2022. The recovery will be led by increasing outsourcing and accelerating digital transformation services, mainly in banking, financial assistance, insurance, retail, and healthcare. BFSI, which accounts for 28% of IT service revenue, will grow 13-14% in FY 2022.
- Major companies in the market are looking for strategic mergers and acquisitions to expand their global footprints. For instance, in January 2021, Tech Mahindra acquired Payments Technology Services for USD 9 million to expand its footprints in the BFSI sector. Payments Technology Services provides banking and payments solutions to financial services firms in Asia.
- Many players in the market are coming up with various product development and innovations to stronghold their market presence. For instance, in April 2022, IBM announced its IBM z16, a real-time AI for transaction processing at scale and the industry's first quantum-safe system. IBM z16 is specifically designed to help protect against near-future threats that might be used to crack today's encryption technologies.
- In May 2022, TCS announced its BaNCS Cloud product suite would enable financial services firms with cloud-native capabilities to accelerate digitization and drive their growth and transformation.
Asia-Pacific is expected to show a significant growth
- The increasing demand for BFSI and the move toward digital transformation are expected to drive market growth in the region. The governments in the area are rigorously investing in digital transformation. For instance, the Ministry of Electronics and Information Technology (MeitY) has announced a budget outlay of INR 10,676.18 crore for the Digital India program, INR 6,388 crore in the last year's budget.
- The rising need for healthcare outsourcing results from increased spending on healthcare services, and the expense of government healthcare programs has shifted to healthcare sources. Numerous new multi-strength hospital projects have come up in the region, boosting the requirement for outsourcing.
- Also, Hospitals have begun to utilize third-party services to understand imaging results or records of doctor's case notes which are set to create a booming effect in the healthcare outsourcing market. As per the Ministry of Finance of the People's Republic of China, In 2021, total public expenditure on health care and hygiene in China amounted to about 1.92 trillion yuan.
Application Outsourcing Industry Overview
The application outsourcing market is highly competitive, with several local and international players active. International participants operate in the countries through partnerships with local players. With the Market expected to broaden and yield more opportunities, more players will enter the market soon. Key players operating in the market include Wipro, IBM, and Accenture, among others. The recent developments in the market are -
- April 2022 - Tata Consultancy Services will combine its experience as a leading transformation partner for BFSI clients with its Microsoft Cloud for Financial Services solutions and its large talent pool of Microsoft-certified consultants to enable clients to innovate and reimagine their businesses to meet the evolving market, customer and regulatory needs.
- April 2022 - TCS has entered into a strategic partnership with payments Canada to transform its operations and help implement the Real-Time Rail (RTR). This new real-time payments system will allow Canadians to initiate payments and receive irrevocable funds in seconds.
Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
1 INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 RESEARCH METHODOLOGY
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Market
5 MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increased demand from BFSI
5.1.2 Growing emphasis on customer retention & engagement
5.1.3 Move towards digital transformation
5.2 Market Restraints
5.2.1 Security & Privacy-related concerns
6 MARKET SEGMENTATION
6.1 By End-user Industry
6.1.1 BFSI
6.1.2 Healthcare and Lifesciences
6.1.3 Media and Entertainment
6.1.4 Logistics & Transportation
6.1.5 Other Categories
6.2 By Geography
6.2.1 North America
6.2.1.1 United States
6.2.1.2 China
6.2.2 Europe
6.2.2.1 Germany
6.2.2.2 United Kingdom
6.2.2.3 France
6.2.2.4 Rest of Europe
6.2.3 Asia Pacific
6.2.3.1 India
6.2.3.2 China
6.2.3.3 Japan
6.2.3.4 South Korea
6.2.3.5 Rest of APAC
6.2.4 Latin America
6.2.5 Middle East and Africa
7 COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Accenture
7.1.2 Wipro
7.1.3 TCS
7.1.4 Capgemini
7.1.5 CSC
7.1.6 HCL
7.1.7 IBM Global Services
7.1.8 Infosys
7.1.9 NTT Data
7.1.10 ATOS SE
8 INVESTMENT ANALYSIS
9 FUTURE OF THE MARKET
- Not Sure / Need Reassuring
- Confirm Content
-
Content is provided by our partners and every effort is made to make Market Report details as clear as possible. If you are not sure the exact content you require is included in this study you can Contact us to double check. To do this you can:
Use the ‘? ASK A QUESTION’ below the license / prices and to the right of this box. This will come directly to our team who will work on dealing with your request as soon as possible.
Write to directly on support@scotts-international.com with details. Please include as much information as possible including the name of report or link so our staff will be able to work on you request.
Telephone us directly on 0048 603 394 346 and an experienced member of team will be on hand to answer.
-
- Sample Pages
-
With the vast majority of our partners we can obtain Sample Pages to support your decision. This is something we can arrange without revealing your personal details.
It is important to note that we will not be able to provide you the exact data or statistics such as Market Size and Forecasts. Sample pages usually confirm the layout or the Categories included in Charts and Graphs, excluding specific data.
To ask for Sample Pages by contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Check for Alternatives
-
Whilst we try to make our online platform as easy to use as possible there is always the possibility that a better alternative has not been found in your search.
To avoid this possibility Contact us through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346 and a Senior Team Member can review your requirements and send a list of possibilities with opinions and recommendations.
-
- Confirm Content
- Prices / Formats / Delivery
- Prices
-
All prices are set by our partners and should be exactly the same as those listed on their own websites. We work on a Revenue share basis ensuring that you never pay more than what is offered elsewhere.
Should you find the price cheaper on another platform we recommend you to Contact us as we should be able to match this price. You can Contact us though through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Discounts
-
As we work in close partnership with our Partners from time to time we can secure discounts and assist with negotiations, this is part of our personalised service to you.
Discounts can sometimes be arranged for speedily placed orders; multiple report purchases or Higher License purchases.
To check if a Discount is possible please Contact our experienced team through ‘? ASK A QUESTION’, support@scotts-international.com, or by telephoning 0048 603 394 346.
-
- Available Currencies
-
Most Market Reports on our platform are listed in USD or EURO based on the wishes of our Partners. To avoid currency fluctuations and potential price differentiations we do not offer the possibility to change the currency online.
Should you wish to pay in a different currency to that advertised online we do accept payments in USD, EURO, GBP and PLN. The price will be calculated based on the relevant exchange rate taken from our National Bank.
To pay in a different above currency to that advertised online please Contact our team and a quotation will be sent within a couple of hours with payment details.
-
- Licenses
-
License options vary from Partner to Partner as is usually based on the number of Users that will benefitting from the report. It is very important that License ordered is not breached as this could have potential negative consequences for you individually or your employer.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Global Site License
-
The Global Site License is the most comprehensive license available. By selecting this license, the Market Report can be shared with other ‘Allowed Users’ and any other member of staff from the same organisation regardless of geographic location.
It is important to note that this may exclude Parent Companies or Subsidiaries.
If you have questions or need confirmation about the specific license we recommend you to Contact us and a detailed explanation will be provided.
-
- Formats
-
The most common format is PDF, however in certain circumstances data may be present in Excel format or Online, especially in the case of Database or Directories. In addition, for certain higher license options a CD may also be provided.
If you have questions or need clarification about the specific formats we recommend you to Contact us and a detailed explanation will be provided.
-
- Delivery
-
Delivery is fulfilled by our partners directly. Once an order has been placed we inform the partner by sharing the delivery email details given in the order process.
Delivery is usually made within 24 hours of an order being placed, however it may take longer should your order be placed prior to the weekend or if otherwise specified on the Market Report details page. Additionally, if details have been not fully completed in the Order process a delay in delivery is possible.
If a delay in delivery is expected you will be informed about it immediately.
-
- Shipping Charges
-
As most Market Reports are delivered in PDF format we almost never have to add additional Shipping Charges. If, however you are ordering a Higher License service or a specific delivery format (e.g. CD version) charges may apply.
If you are concerned about additional Shipping Charges we recommend you to Contact us to double check.
-
- Prices
- Ordering
- By Credit Card
-
We work in Partnership with PayU to ensure payments are made securely in a fast and effortless way. PayU is the e-payments division of Naspers.
Naspers operates in over 133 International Markets and ranks 3rd Globally in terms of the number of e-commerce customers served.
For more information on PayU please visit: https://www.payu.pl/en/about-us
-
- By Money Transfer
-
If you require an invoice prior to payment, this is possible. To ensure a speedy delivery of the Market Report we require all relevant company details and you agree to maximum payment terms of 30 days from receipt of order.
With our regular clients deliver of the Market Report can be made prior to receiving payment, however in some circumstances we may ask for payment to be received before arranging for the Market Report to be delivered.
-
- By Credit Card
- Security
- Website security
-
We have specifically partnered with leading International companies to protect your privacy by using different technologies and processes to ensure security.
Everything submitted to Scotts International is encrypted via SSL (Secure Socket Layer) and all personal information provided to Scotts International is stored on computer systems with limited access in controlled environments.
-
- Credit Card Security
-
We partner with PayU (https://www.payu.pl/en/about-us) to ensure all credit card payments are made securely in a fast and effortless way.
PayU offers 250+ various payment channels and eWallet services across 4 continents allowing buyers to pay electronically, whether on a computer or a mobile device.
-
- Website security