IT Services Outsourcing Market To Reach $1,180.42 Billion By 2030

IT Services Outsourcing Market Growth & Trends

The global IT services outsourcing market size is expected to reach USD 1,180.42 billion by 2030, registering a CAGR of 8.0% from 2023 to 2030, according to a new report by Grand View Research, Inc. 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.

This may be attributed to better reliability, control, responsiveness, market knowledge, and ease of communication. Companies have started subcontracting application development and maintenance services to onshore service providers to reduce hidden costs of offshoring. The industry is beholding new markets for subcontracting IT operations such that companies ensure focus on their core business and leverage advanced technologies with full capacity to manage the corporate environment. However, captive centers and data-security related concerns are a constant roadblock to the otherwise growing industry.

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IT Services Outsourcing Market Report Highlights

• Service providers are shifting towards standardization of IT outsourcing solutions as against customized ones. They are also relying profoundly on mass automation devices, which will create further opportunities and decrease the workforce necessary to back critical corporate applications

• The retail and e-commerce segment is expected to grow at the fastest CAGR of 9.7% during the forecast period owing to the ever-increasing demand for modernized solutions

• Asia Pacific is expected to grow at the fastest CAGR of 10.3% during the forecast period owing to easy availability of skilled staff, a better quality of IT solutions, and low costs of projects

IT Services Outsourcing Market Segmentation 

Grand View Research has segmented the global IT services outsourcing market on the basis of service, location, end-use, and region:

IT Services Outsourcing Service Outlook (Revenue, USD Billion, 2017 - 2030)

• Application Services

• Emerging Technology Services

• Data Center Operations

• Helpdesk Services

• Infrastructure Capacity Services

• Managed Security Operations

• Network Operations

• Others

IT Services Outsourcing Location Outlook (Revenue, USD Billion, 2017 - 2030)

• On-shore

• Off-shore

IT Services Outsourcing End-use Outlook (Revenue, USD Billion, 2017 - 2030)

• Aerospace & Defense

• BFSI

• Healthcare

• Retail & E-commerce

• Telecom & Media

• Others

IT Services Outsourcing Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

  • U.S.

  • Canada

• Europe

  • U.K.

  • Germany

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

• Latin America

  • Brazil

  • Mexico

• Middle East & Africa

  • Saudi Arabia

  • South Africa

  • UAE

List of Key Players in the IT Services Outsourcing Market

• Accenture

• IBM

• Fujitsu

• Hewlett Packard Enterprise Development LP

• SAP SE

• Capgemini

• Cognizant

• Infosys Limited

• NTT Data Corporation

• Oracle