Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - South Korea

South Korea

Revenue in the Application Outsourcing market is projected to reach €2.67bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.10%, resulting in a market volume of €2.82bn by 2029.
The average Spend per Employee in the Application Outsourcing market is projected to reach €89.10 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

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Analyst Opinion

The Application Outsourcing market in South Korea has been experiencing significant growth in recent years.

Customer preferences: South Korean companies are increasingly outsourcing their application development and maintenance services to third-party providers. This is largely due to the need for cost reduction and improved operational efficiency. Additionally, South Korean companies are also looking for providers who can offer them a wider range of services, including cloud computing, big data analytics, and mobile application development.

Trends in the market: One of the key trends in the South Korean Application Outsourcing market is the increasing adoption of agile methodologies. This approach enables companies to develop and deliver software applications more quickly and efficiently, which is critical in today's fast-paced business environment. Another trend is the growing demand for cloud-based application outsourcing services. This is driven by the need for greater flexibility and scalability, as well as the desire to reduce infrastructure costs.

Local special circumstances: South Korea is a highly competitive market, with many domestic and international providers vying for business. As a result, providers are under pressure to offer innovative and high-quality services at competitive prices. Additionally, there is a strong emphasis on data security and privacy, which means that providers must have robust security measures in place to ensure the protection of sensitive information.

Underlying macroeconomic factors: South Korea's economy has been growing steadily in recent years, driven by strong exports and domestic consumption. This has created a favorable business environment for application outsourcing providers, as companies look to leverage technology to drive growth and increase competitiveness. Additionally, the government has been actively promoting the development of the IT industry, which has helped to create a supportive ecosystem for application outsourcing providers.

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.