Worldwide and U.S. Application Management Services 2013–2017 Forecast

This IDC study presents forecasts for the worldwide and U.S. application management services (AMS) market for 2013–2017. Discrete application outsourcing (AO) services spending was quite robust in 2012, growing at an estimated 4.2% worldwide, reaching an estimated $50.7 billion. IDC estimates that at a global level, AO services will show a slowing of growth in 2013, estimated at 5.7%. The rebound growth in U.S. application management (AM) spending is expected to slow down marginally in 2013, while Western Europe is projected to show significant decline in 2013 (estimated less than1% YoY growth), reflecting very tight austerity measures in the region.

Peter Marston, research manager of Application Development, Testing and Management Services at IDC, explains, "Application outsourcing contract renewals will continue to reflect a mix of application portfolio management strategies, leveraging modernization, consolidation, and continued process optimization to drive the value propositions of many deals. Companies will be looking for ways to innovate and transform while they drive greater operational efficiencies."