The global IT application development services market was valued at almost USD479 billion in 2016 and is expected to reach around USD679 billion by 2021.
Procurement market intelligence analysts have announced its latest market research report on IT application development services for the period 2017-2020. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the IT application development services market during the forecast period. Some of the top vendors listed in this industry analysis include Accenture, IBM, Fujitsu, Capgemini, and Infosys.
In terms of geographical analysis, the Americas was the dominant shareholder in the global market during 2015 with a market share of around 46%. Concept creation, design, and coding accounted for over 70% of the application development revenue whereas application maintenance, analytics, distribution, and extension services accounted for around 30% of the revenue.
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According to Angad Singh, a category specialist at Technavio for research on category spend intelligence, “The adoption of cloud-driven applications is undergoing an upsurge in the global market currently. Advantages they offer such as scalability and the ability to access the application on multiple devices with the same functions, features, and data are driving the increased adoption of such applications. For instance, SaaS is a distribution model based on the cloud platform.”
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The new procurement market intelligence report analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Need for unique solutions to meet business requirements
Buyers in the market are on the lookout for applications that can be customized based on the business requirements or project specifications. The rise in demand for such applications is attributable to the enhanced productivity they bring about. Over the past five years, the customized application solutions market grew by almost USD100 billion.
Growth of cloud-based SaaS
The shift towards cloud-based application development services due to the operational changes in organizations has been a significant trend in the global market for the past 6-7 years. Furthermore, scalable and extensible architecture of cloud services helps in completing the application development cycle in shorter TATs, reducing risks to a minimum. Suppliers are also able to provide these cloud-driven solutions via on-site capabilities.
Cost saving by avoiding the need to purchase licensed software
Buyers often incur additional costs associated with upgrades, monthly or annual licensing fees, per-website, or installation licenses, which adds to the buyer’s budget while purchasing existing applications. The cost of developing and supporting a purpose-built customer software application, however, amounts to less that the cost of licensing commercial software. Customized applications can reduce the cost of manually operating business procedures such as creating reports, making a presentation, or e-mailing details.
A more detailed analysis is available in the procurement market intelligence report titled, ‘Global IT Application Development Services – Procurement Market Intelligence 2017.’
