IT Outsourcing Market Report

Market Overview:

The global IT outsourcing market size reached US$ 550.5 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 720.2 Billion by 2028, exhibiting a growth rate (CAGR) of 4.48% during 2023-2028.

Information technology (IT) outsourcing involves reliance on external service providers to deliver IT-enabled business processes, application services, and infrastructure solutions for effective business outcomes. It also includes utility services, software as a service (SaaS), and cloud-enabled outsourcing that helps clients develop precise strategies and vision. It assists in reducing expenses, increasing time savings and supporting uninterrupted workflow. At present, organizations across the globe are relying on IT outsourcing as it enables enterprises to accelerate time to market and take maximum coverage of external expertise, assets, and intellectual property.

IT Outsourcing Market Trends:

The global outbreak of coronavirus disease (COVID-19) has significantly impacted businesses around the world, which propelled them to revise budgets and outsource non-core functions to maintain financial stability and minimize the impact of the pandemic. Apart from this, as keeping data storage devices and facilities in-house requires substantial capital investments, companies worldwide are outsourcing their data storage to a third party due to lower labor costs, cheaper infrastructure, and significant tax savings advantages. Moreover, due to the fierce global competition in the industry, small and medium scale enterprises (SMEs) that lack the space or labor funds for in-house auxiliary departments are shifting to IT outsourcing for improving efficiency and expanding business globally. Additionally, there is a rise in the incorporation of IT services in the healthcare sector for transforming its operations. As a result, health firms are focusing on IT outsourcing to manage finances while balancing IT maintenance. IT outsourcing healthcare services generally include coding and billing, medical transcriptions, insurance claim processing, virtual assistants, and customer support, which help accelerate medical workflows and research procedures. This, in turn, is influencing the market positively.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each sub-segment of the global IT outsourcing market report, along with forecasts at the global, regional and country level from 2023-2028. Our report has categorized the market based on service model, organization size and end user.

Breakup by Service Model:

• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (IaaS)
   

Breakup by Organization Size:

• Small and Medium-sized Enterprises
• Large Enterprises
   

Breakup by End User:

• BFSI
• Healthcare
• Media and Telecommunications
• Retail and E-commerce
• Manufacturing
• Others
   

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players being Accenture plc, Capgemini SE, Dell Technologies Inc., DXC Technology Company, Fujitsu Limited, International Business Machines Corporation, Nippon Telegraph and Telephone Corporation, Specialist Computer Centres (SCC) and Wipro Limited.

Report Coverage:

Key Questions Answered in This Report:

• How has the global it outsourcing market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the global it outsourcing market?
• What are the key regional markets?
• What is the breakup of the market based on the service model?
• What is the breakup of the market based on the organization size?
• What is the breakup of the market based on the end user?
• What are the various stages in the value chain of the industry?
• What are the key driving factors and challenges in the industry?
• What is the structure of the global it outsourcing market and who are the key players?
• What is the degree of competition in the industry?