The global IT Services Outsourcing market size is expected to be worth around US$ 937.7 billion by 2028, according to a new report by Vision Research Reports.
The global IT Services Outsourcing market size was valued at US$ 520.73 billion in 2020 and is anticipated to grow at a CAGR of 7.8% during forecast period 2021 to 2028.
Rising need to reduce operational costs and the lack of in-house information technology engineering talent are anticipated to drive the industry over the forecast period. The IT operations subcontracting industry is witnessing an upsurge in core information technology activities, not just to save capital, but to benefit from skilled and experienced professionals to deliver superior quality solutions.
A significant number of small-to-medium businesses are likely to fully outsource their IT operations owing to their constrained infrastructure capacities and agile methodologies. Rapid transformation of business models to keep pace with the emerging technologies, such as Artificial Intelligence (AI), Internet-of-Things (IoT), Robotic Process Automation (RPA), blockchain, and deep learning, are expected to drive the market. Onshoring of IT services as against offshoring is likely to grow at a considerable rate over the forecast period.
The eight primary services evaluated in this market report comprise application services, emerging technology, data center operations, helpdesk offering, infrastructure capacity, managed security operations, network operations, other services. The other IT outsourcing segment includes quality engineering & assurance and consultancy operation. The application business segment accounted for the largest revenue share in 2019 and is anticipated to maintain its dominance over the forecast period. Infrastructure capacity business forms a vital fragment of the global market, thereby providing infrastructure design & implementation, cloud computing, and remote infrastructure management services to businesses. The network operations analyzed in the study are on an upsurge for several functionalities, the most important ones being network optimization, wireless infrastructure, contact center transformation, and Unified Communications and Collaboration (UCC).
Rapid expansion of the e-commerce sector, usage of smartphones and social media, various governments’ emphasis on the digital economy, and rise in technology-driven start-ups have led to the speedy growth of the market. In addition, rise in the number of cloud service providers is adding to the data space requirement, thereby supporting market development. Demand for outsourcing of helpdesk services is also on surge as it allows companies to save on internal resources, costs, and time, to focus on core business processes.
Based on location, the market has been classified into on-shore and off-shore locations. The off-shore segment accounted for a larger revenue share in 2019 and is expected to observe a considerable growth from 2020 to 2027. Offshoring information technology operations to developing nations to avail cost benefits, mitigation of currency risks, and fulfillment of offset obligations have been driving the off-shore business over decades. Companies have preferred the Asia Pacific countries as their offshoring destination mainly because of the ample availability of skilled talent and low-cost labor. The market is likely to witness a shift in this trend and prefer onshoring over the forecast period.
Based on end use, the market has been categorized into aerospace & defense, BFSI, healthcare, retail & e-commerce, telecom & media, and others. The other end-use segment includes automobile, energy, public service, and utility sector. The segment is poised to grow at a CAGR of over 8.0% in the forecast period. The BFSI segment registered the largest revenue share in 2019. It is anticipated to continue its dominance from 2020 to 2027 owing to its significant investment in automation, AI-based conversational systems, and cybersecurity.
The healthcare sector is driving the growth of the IT services subcontracting due to a surge in the development of tailored software platforms as per the requirements of healthcare providers and increasing usage of big data in the medical sector. Health information management across computerized systems is of vital importance to the healthcare sector. Hence, organizations outsource their information technology solutions to ensure a secure exchange of information between providers, consumers, and quality monitors. Usage of information technology in healthcare allows medical organizations to minimize human errors and reducing costs in maintaining patient records for their safety & reliability.
North America accounted for the largest revenue share in the market in 2019. The majority of technology-driven companies are based in North America, and the region has been observing higher revenue share due to the early adoption of new technologies. U.S. accounted for the highest revenue share owing to the tenacious countrywide expansion in the IT sector and the growing deployment of information technology operations, enterprise software, data center systems, and communication systems.
Hewlett Packard Enterprise Development LP
NTT Data Corporation
Data Center Operations
Managed Security Operations
Aerospace & Defense
Retail & C-commerce
Telecom & Media
Middle East & Africa
The IT Services Outsourcing market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of IT Services Outsourcing market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global IT Services Outsourcing market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the IT Services Outsourcing market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted IT Services Outsourcing market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the IT Services Outsourcing capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of IT Services Outsourcing by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global IT Services Outsourcing market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major IT Services Outsourcing market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of IT Services Outsourcing market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the IT Services Outsourcing industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The IT Services Outsourcing market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to IT Services Outsourcing market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of IT Services Outsourcing market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new IT Services Outsourcing market. These factors have benefited the growth of the global market for IT Services Outsourcing. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for IT Services Outsourcing. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of IT Services Outsourcing are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are: