Industry Overview of IT Outsourcing Market
Information technology (IT) outsourcing involves dependence on external service providers to deliver IT-enabled application services, business processes, and infrastructure solutions for effective company outcomes. It also includes software as a service (SaaS), utility services, platform as a service (PaaS), and cloud-enabled solutions that assist clients in developing precise strategies and visions. IT outsourcing aids in reducing expenses, increasing time savings, and supporting uninterrupted workflow. In addition to this, these solutions enable enterprises to accelerate time to market and take maximum coverage of external expertise, assets, and intellectual property. As a result, IT outsourcing finds widespread applications across various sectors, such as BFSI, healthcare, media and entertainment, retail, manufacturing, etc.
How Big Is the IT Outsourcing Market?
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.
Global Industry Trends and Drivers:
The escalating demand for businesses to revise budgets and outsource non-core functions to maintain financial stability, owing to the sudden outbreak of the COVID-19 pandemic, is among the primary factors driving the IT outsourcing market. Besides this, organizations across the globe are providing their data storage to a third party, on account of lower labor costs, cheaper infrastructure, and significant tax savings advantages, which is further augmenting the market growth. Moreover, the elevating shift of small and medium-scale enterprises (SMEs) towards IT outsourcing by the leading companies, including 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), Wipro Limited, etc., for improving efficiency and expanding business is also catalyzing the global market. Apart from this, the incorporation of these services in the healthcare sector, such as coding and billing, medical transcriptions, insurance claim processing, virtual assistants, and customer support that accelerate medical workflows and research procedures, is expected to bolster the IT outsourcing market in the coming years.
Report Segmentation:
The report has been segmented the market into following categories:
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
o United States
o Canada
• Asia-Pacific
o China
o Japan
o India
o South Korea
o Australia
o Indonesia
o Others
• Europe
o Germany
o France
o United Kingdom
o Italy
o Spain
o Russia
o Others
• Latin America
o Brazil
o Mexico
o Others
• Middle East and Africa
The report provides a comprehensive analysis of the industry key players listed below:
The Major Players in the market are 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.
