GITNUX MARKETDATA REPORT 2024

Custom Software Development Industry Statistics

The custom software development industry is projected to continue growing steadily, driven by increasing demand for personalized solutions across a wide range of sectors.

Last Updated: June 22, 2024

Written & Summarized by: Jannik Lindner

How we write

In this post, we explore key statistics shaping the custom software development industry, shedding light on the market size, outsourcing trends, growth projections, and methodologies favored by IT companies. From the substantial market value to the prevalence of third-party collaborations, these statistics provide valuable insights into the evolving landscape of custom software development. Discover how businesses are leveraging outsourcing to enhance service quality and accelerate software development speed, as well as the projected growth of the global IT outsourcing market.

Statistic 1

"The market size of custom software development in the US was $153 billion in 2020."

Statistic 2

"The global custom software development sector is predicted to grow at a CAGR of 7.0% from 2019 to 2025."

Statistic 3

"More than 50% of businesses turn to third-parties to fulfill their software development needs."

Statistic 4

"In 2019, 63% of businesses outsourced application/software maintenance."

Statistic 5

"The global custom software development market is expected to reach $917.74 billion by 2028."

Statistic 6

"In 2020, 57% of IT services were outsourced, including software development."

Statistic 7

"Approximately 62% of IT companies developed software using Agile methodologies for custom software development."

Statistic 8

"The global market for IT outsourcing is projected to reach $397.6 billion by 2025."

Statistic 9

"By 2025, the application development segment is expected to hold a considerable share of the outsourcing market."

Statistic 10

"24% of organizations outsource to enhance their service quality, including software development."

Statistic 11

"Offshore software development rates vary from $25 to $50 per hour."

Statistic 12

"34% of businesses want to improve software development speed by outsourcing."

Statistic 13

"More than 70% of companies plan to increase their use of outsourcing, including IT and software development services."

In conclusion, the custom software development industry is experiencing significant growth and demand, as evidenced by the increasing market size projections and statistics indicating a high percentage of businesses outsourcing their software development needs. The prevalence of Agile methodologies and the projection of a considerable share of the outsourcing market in the application development segment further highlight the industry’s dynamism and evolution. With a majority of companies planning to increase their outsourcing activities and a focus on improving service quality and development speed, the custom software development sector is poised for continued expansion and innovation in the coming years.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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