IT Outsourcing Market: Global Industry Analysis and Forecast (2022-2029)

IT Outsourcing Market size was valued at US$ 332.89 Bn. in 2021 and the total revenue is expected to grow at 4.52 % through 2021 to 2029, reaching nearly US$ 474.14 Bn.
IT Outsourcing Market Overview:
IT outsourcing is a business strategy in which information technology (IT) service providers provide IT support to companies. IT is the use of computers to transmit, study, save, retrieve, and manipulate data or information, most commonly in the setting of organisations. An external IT service provider or an internal IT organisation could be the IT service provider. Services connected to technical skills that enable firms to manage, generate, optimise, and access information and business processes are referred to as global IT outsourcing. IT outsourcing also includes data restoration and backup. This has resulted in increased productivity and lower operational expenses for businesses.



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Global IT Outsourcing Market Dynamics:
The global IT outsourcing market is primarily driven by an increase in the number of start-up businesses and the adoption of advanced technologies to manage, test, develop, install, troubleshoot, and configure an organization's computer hardware and software on a regular basis. Additionally, the market is being increased by a growing focus on establishing an IT-efficient infrastructure and an increase in demand for IT services such as system integration services and consulting services by businesses. Also, an increase in the need to support a virtualized IT ecosystem is a major factor propelling the IT outsourcing market.

The aerospace and military industry witnessed increasing growth as a result of FDI investments and government-friendly regulations. Additionally, with rising per capita income, particularly in developing nations such as India, China, and Malaysia, the BFSI sector is trending upward. Also, increased concerns about data security and cybercrime have fuelled demand for IT outsourcing services. Other IT market leaders, such as Microsoft, Intel, and Hewlett-Packard, have chosen Turkey as a regional base. Ankara, Turkey's cosmopolitan capital, also announced its innovative "2023" growth plan, which calls for investment to increase ICT's contribution to GDP from 2.9 percent to 8%, resulting in a local ICT market worth USD 160 billion, fueled by an increase in national R&D spending from less than 1% to more like 3%.

The global demand for IT outsourcing is being fueled by an increase in migration and digitization to the cloud. However, worries about security and privacy, as well as an increase in hacking incidences on application-based services, are limiting the market.

Market Trends:

Traditional outsourcing is currently Propelled by RPA:

For IT Outsourcing 2021, such a market trend was attributed to the epidemic of Covid-19 Shutdowns and social distancing. However, as per the research Covid-19 epidemic is not mainly responsible if Robotic Automation Process (RPA) has been all the rage for years. Nearly about 90% of large enterprises globally will have implemented RPA by 2021, according to maximize research. The major firms across the globe are seeing such an approach to digitally empower critical industrial developments by inputting resilience and scalability, also at the same time recalibrating human workouts and physical determination.

During the forecast Period, RPA, particularly services like RPA consultancy and RPA implementation, will ensure that business leaders' operations are secured and run smoothly in the event of a global pandemic comparable as COVID-19.

The advent of digitalization will drive the market over Covid-19 pandemic:

Customers have grown adapted to searching for services on-demand online as a result of Covid-19, requiring businesses to adapt to changing consumer preferences and digital technology usages. As a result, robotic process automation, software bots, automation, machine learning, and other disruptive technologies have become commonplace and are sweeping the globe. This will have an impact on the outsourcing business, and a new digital strategy will develop.

• Outsourcing methods are expected to alter as digitization advances and firms adapt to digital transformation.
• IT development firms will assist enterprises in gaining access to technological stacks that are not available to in-house staff. Modern outsourcing innovations can make users work more productive, efficient, and profitable, regardless of the type of business users have.

This will motivate outsourcing firms to develop new digital execution techniques, manage digital systems, and integrate these tactics across several digital platforms. Many developing technologies, including virtualization and grid computing, enable outsourcing sector innovators to use the cloud, a standardized IT infrastructure.
Global IT Outsourcing Market Segment Analysis:
Based on the Service Model, the global IT Outsourcing market is segmented into Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). The Saas segment held the largest market share of xx% in 2021. However, both SaaS and IaaS are growing currently which held the largest market share of 42.1% in 2021. The rising investments on Software as a service (SaaS) model will drive the growth of outsourcing as well as online conference. Customers all across the world are rapidly adopting SaaS as the most preferred way of software delivery. From 2021, 75% of firms expect their applications to be SaaS, according to a survey. And, with the fastest-growing SaaS companies extending their staff by 56% on average each year, finding the right people is crucial. It may, however, prove to be their most difficult challenge.

Outsourcing is a prevalent consideration for businesses in today's global market. Because of the high proportion of English fluency and low time zone disparities, software outsourcing to Latin America is becoming increasingly attractive among US organisations. As SaaS becomes more prevalent, outsourcing may become a critical component of long-term success.

Based on the End-User, the global IT Outsourcing market is sub-segmented into Aerospace & Defense, BFSI, Healthcare, Retail & E-commerce, Telecom & Media and Others. The BFSI segment held the largest market share of xx% in 2021. Financial enterprises are increasingly turning to third - party to operate their processes and services. Such as email marketing to payment processing can be outsourced by banks. Banks have a slim chance of surviving and attracting consumers unless they have a strong and comprehensive in-house IT department or a reliable outside partner. Bank services must be more personalised and accessible for potential buyers. IT outsourcing companies can help with the transition to omnichannel platforms, which allow users to access information from any device. In 2021, Wipro, an IT services company, said that it had won a $300 million IT outsourcing contract with ICICI Bank, under which it will supply the bank with a comprehensive suite of services.


Global IT Outsourcing Market Regional Insights:
North America held the largest market share of xx% in 2021 and it remain kept its leading position during the forecast period. Integrated CPE operations are more commonly used in North America by IT and telecom companies, as well as other service-based firms. This is owing to an increase in the use of advanced systems integration to secure and optimize the performance of enterprise equipment, which is expected to drive demand for managed CPE services and boost the IT outsourcing market throughout the forecast period.

Asia Pacific is expected to grow at a highest CAGR of xx% in the global IT Outsourcing market during the forecast period. China has always been a prominent outsourcing location. The outsourcing sector considers the advantages that the majority of US businesses find appealing. Reduced development costs are critical to keeping outsourcing in its original form. China, according to King White, CEO of Site Selection Group, a worldwide location expert, can become one of the most profitable outsourcing markets, even more cost-competitive than India.

The objective of the report is to present a comprehensive analysis of the global IT Outsourcing Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also helps in understanding the global IT Outsourcing Market dynamic, structure by analyzing the market segments and project the global IT Outsourcing Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global IT Outsourcing Market make the report investor’s guide.
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Global IT Outsourcing Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2016 to 2021
Market Size in 2021:
US $ 332.89 Bn.


Forecast Period 2022to 2029 CAGR:
4.52 %
Market Size in 2029:
US $ 474.14 Bn.


 Segments Covered:
by Service Model
• Software as a Service (SaaS)
• Platform as a Service (PaaS)
• Infrastructure as a Service (IaaS)


by Deployment
• Public Cloud
• Private Cloud


by End-User
• Aerospace & Defense
• BFSI
• Healthcare
• Retail & E-commerce
• Telecom & Media
• Others



Global IT Outsourcing Market, by Region
• North America
• Europe
• Asia Pacific
• South America
• Middle East and Africa
Global IT Outsourcing Market Key Players
• Accenture
• IBM
• Fujitsu
• Hewlett Packard Enterprise Development LP
• SAP SE
• Capgemini
• Cognizant
• Infosys Limited
• NTT Data Corporation
• Oracle
• BMC Software, Inc.
• Hewlett Packard Enterprise Company
• International Business Machines Corporation
• Red Hat, Inc.
• VMware, Inc.
• Accenture plc
• Adaptive Computing Enterprises, Inc.
• CA Technologies, Cisco Systems, Inc.
• Citrix Systems, Inc.
• CloudBolt Software, Inc.
• Conviture, Inc.
• CSC Computer Sciences Limited
• Dell EMC
• Egenera, Inc.

Frequently Asked Questions:

1] What segments are covered in IT Outsourcing Market report?
Ans. The segments covered in IT Outsourcing Market report are based on Service Model, Deployment, and End-User.

2] Which region is expected to hold the highest share in the global IT Outsourcing Market?
Ans. North America is expected to hold the highest share in the global IT Outsourcing Market.

3] What is the market size of global IT Outsourcing Market by 2029?
Ans. The market size of global IT Outsourcing Market is expected to reach US $ 474.14 Bn. by 2029.

4] Who are the top key players in the global IT Outsourcing Market?
Ans. Accenture, IBM, Fujitsu, Hewlett Packard Enterprise Development LP, SAP SE and Capgemini are the top key players in the global IT Outsourcing Market.

5] What was the market size of global IT Outsourcing Market in 2021?
Ans. The market size of global IT Outsourcing Market in 2021 was US $ 332.89 Bn.