Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Russia

Russia

Revenue in the Application Outsourcing market is projected to reach €0.69bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -1.49%, resulting in a market volume of €0.64bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach €9.40 in 2024.
In global comparison, most revenue will be generated in the United States (€39,740.00m in 2024).

Key regions: Brazil, Germany, United Kingdom, Netherlands, China

Mercado

Región

Comparación de regiones

Moneda

Analyst Opinion

The demand for Application Outsourcing services in Russia has been increasing steadily over the past few years.

Customer preferences: Russian businesses are increasingly outsourcing their application development and maintenance services to third-party vendors to reduce costs, improve efficiency, and access specialized skills. In addition, the increasing adoption of cloud computing, big data analytics, and mobile technologies has led to a greater demand for application outsourcing services in Russia.

Trends in the market: One of the major trends in the Russian Application Outsourcing market is the increasing adoption of Agile and DevOps methodologies. Many Russian businesses are adopting these methodologies to improve the speed and quality of their application development and maintenance processes. In addition, there has been a growing trend towards nearshoring, with Russian companies outsourcing their application development and maintenance services to other countries in the region, such as Belarus and Ukraine.

Local special circumstances: The Russian Application Outsourcing market is unique in that it is heavily influenced by the country's political and economic environment. The imposition of economic sanctions by Western countries has led to a decline in foreign investment in the country, which has had a negative impact on the market. In addition, the country's complex regulatory environment and high levels of bureaucracy can make it difficult for foreign companies to do business in Russia.

Underlying macroeconomic factors: The Russian economy has been impacted by a number of macroeconomic factors in recent years, including the decline in oil prices, economic sanctions, and geopolitical tensions. As a result, many Russian businesses have been looking for ways to reduce costs and improve efficiency, which has led to an increase in the demand for application outsourcing services. In addition, the government's push to modernize the country's IT infrastructure has also contributed to the growth of the market. However, the ongoing economic uncertainty and political instability in the country could have a negative impact on the market in the future.

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.