This IDC study presents forecasts for the worldwide and U.S. application management services (AMS) market for 2012–2016. Discrete application outsourcing (AO) services spending was quite robust in 2011, growing at an estimated 10.5% worldwide, reaching an estimated $48.1 billion. IDC estimates that at a global level, AO services will show a slowing of growth in 2012, estimated at 5.6%. The rebound growth in U.S. application management (AM) spending is expected to slow down marginally in 2012, while Western Europe is projected to show significant decline in 2012 (estimated <1% YoY growth), reflecting very tight austerity measures in the region.

According to Rona Shuchat, director of Application Development, Testing and Management Services, "IDC expects that AO 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."