Increased awareness of the need for data security and customer centricity in business projects across the globe will lead to increased demand for IT Services Outsourcing

IT Services Outsourcing Category - Procurement Intelligence

The IT Services Outsourcing category is anticipated to witness growth at a CAGR of 8.52% from 2023 to 2030. In 2022, Asia Pacific accounted for 35% of the market share followed by North America and Europe. North America has a thriving technological environment with the presence of a large number of IT firms, startups, and research institutes. IT outsourcing firms can benefit greatly from the region's emphasis on cutting-edge technologies like blockchain, AI, and IoT. A large number of American businesses are becoming more global in scope. They frequently look for IT outsourcing partners that can assist them in setting up and managing IT infrastructure in new areas to accomplish this expansion effectively. In addition, the Europe market is also witnessing steady growth. As compared to Italy and France, the UK and Germany exhibit higher revenue. The focus of players in this region is shifting from cost reduction to innovation and value-added services.

Besides BFSI and aerospace, the healthcare end-use segment is also witnessing continued growth owing to the surge in the development of software platforms that are specifically designed to meet the needs of healthcare professionals and the growing use of big data in the medical industry. For the healthcare industry, managing health information across computerized systems is essential. In order to guarantee a secure information interchange between suppliers, customers, and quality inspectors, companies outsource their information technology solutions. By utilizing information technology, healthcare institutions can reduce expenses incurred in the maintenance of patient records while also minimizing human error, and improving patient safety and dependability. Furthermore, a large number of telecommunication businesses are also contracting out their value-added services, such as next-generation communication, content, and commerce services, to IT service providers.

The category is witnessing higher adoption of blockchain technology. This technology enables programmers to build safe cross-decentralized computer data storage applications. It is gaining popularity due to the growing need for the decentralized web to facilitate anonymous transactions. It offers increased transparency in addition to increased security and defense against cyberattacks. Blockchain technology combined with AI/ML technologies will reduce financial risks and immune the business enterprise against financial fraud. Most companies are eager to work with the best IT services outsourcing providers in order to stay updated with current state of the digital industry. It will provide increased performance, competitiveness, and scalability for their company. The application of AI in the IT sector has been around for a while, and it has a promising future. IT outsourcing service providers may lower human mistake rates, save time and money, and free up staff members to work on more intricate and imaginative projects by utilizing AI tools like natural language processing (NLP), robotic process automation (RPA), and chatbots.

The demand for the services offered in this category intensified post the outbreak of COVID-19 pandemic. It forced every industry to move to digital solutions to maintain corporate operations. At the start of the pandemic, businesses all over the world abruptly changed to remote working modes, which greatly increased the need for cloud-based management tools. They are fully converting to cloud services after realizing about its various advantages. In addition, numerous businesses are opting to outsource IT services in order to stay relevant, driven by the acceleration of digitalization, the ongoing shortage of tech talent, and the emergence of cutting-edge technologies like artificial intelligence (AI) and robotic process automation (RPA). Due to the lack of competent IT staff and superior software, more businesses started choosing to outsource their digital transformation initiatives. The pandemic has led to a variety of new consumer demands, pushing companies to provide quick, cutting-edge solutions.

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IT Services Outsourcing Intelligence Highlights

• The IT Services Outsourcing category exhibits a fragmented landscape, with intense competition among the service providers.

• India is the preferred low-cost/best cost country for sourcing IT Services Outsourcing owing to the presence of robust IT sector, offering access to a sizable talent pool of intelligent people with a background in technology, including engineers, data analysts, and software developers.

• Buyers in the category possess high negotiating capability owing to the intense competition among the service providers based on number of services and prices, enabling the buyers with flexibility to switch to a better alternative.

• Setup costs (infrastructure, transition, and migration), labor, software licensing fee for service provider, rent & utilities, and maintenance & upgradation are the major cost components of IT Services Outsourcing category.

IT Services Outsourcing Procurement Intelligence Report Coverage

Grand View Research will cover the following aspects in the report:

• Category Intelligence along with emerging technology and regulatory landscape

• Category estimates and forecasts from 2022 to 2030

• Growth opportunities, trends, and driver analysis

• Supply chain analysis, supplier analysis with supplier ranking and positioning matrix, supplier’s recent developments

• Porter’s 5 forces

• Pricing and cost analysis, price trends, commodity price forecasting, cost structures, pricing model analysis, supply and demand analysis

• Engagement and operating models, KPI, and SLA elements

• LCC/BCC analysis and negotiation strategies

• Peer benchmarking and product analysis

• Category report in PDF, Excel, and PPT and online dashboard versions

Cost Intelligence Highlights:

Grand View Research has identified the following key cost components for the IT Services Outsourcing Category:

• Setup Costs (Infrastructure, Transition, and Migration)

• Labor

• Software Licensing Fee for Service Provider

• Rent & Utilities

• Maintenance & Upgradation

• Others

  • Insurance Expenses

  • Legal & Consulting Costs

  • Security

  • Change Management Costs

  • Exit Costs

Setup Costs (Infrastructure, Transition, and Migration) form the largest key cost component of the IT Services Outsourcing category.

List of Key Suppliers in the IT Services Outsourcing Category

• Accenture plc

• Atos SE

• Capgemini Services SAS

• Cognizant Technology Solutions Corporation

• DXC Technology Company

• HCL Technologies Limited

• Infosys Limited

• International Business Machines (IBM) Corporation

• NTT DATA Group Corporation

• TATA Consultancy Services Limited

• Wipro Limited

• WNS (Holdings) Ltd.