Enjoy complimentary customisation on priority with our Enterprise License!
The IT outsourcing market share is expected to increase by USD 117.24 million from 2021 to 2026, at a CAGR of 4.12%.
This IT outsourcing market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers IT outsourcing market segmentations by service (infrastructure outsourcing and application outsourcing) and geography (North America, Europe, APAC, South America, and Middle East and Africa). The IT outsourcing market report also offers information on several market vendors, including Accenture Plc, Acora Ltd, Amdocs Ltd., Atos SE, Capgemini Service SAS, CGI Inc, Cognizant Technology Solutions Corp., Fujitsu Ltd., Genpact Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Infosys Ltd., International Business Machines Corp., ITC infotech India Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd, Unisys Corp., Wipro Ltd., Xerox Holdings Corp., and Larsen and Toubro Ltd. among others.
Download Report Sample to Unlock the IT Outsourcing Market Size for the Forecast Period and Other Important Statistics
Based on our research output, there has been a neutral impact on the market growth during and post-COVID-19 era. The need to optimize business processes is notably driving the IT outsourcing market growth, although factors such as data privacy and security risks in cloud-based services may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the IT outsourcing market industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key IT Outsourcing Market Driver
The need to optimize business processes is one of the key drivers supporting the IT outsourcing market growth. Organizations need strategic planning that is aligned with their operational strategy to innovate their product and service offerings. IT outsourcing is helping organizations to align their project management planning with their business objectives for innovations and sustainable development. Enterprises, including biopharmaceuticals and chemicals, in the manufacturing marketplace, are under constant pressure to increase their profit margins, reduce the time to market, and optimize processes across all aspects of their businesses. Therefore, the need to improve processes, reduce waste, and maintain quality standards are factors driving the adoption of IT outsourcing services.
Key IT Outsourcing Market Trend
The rise in the integration of application outsourcing is one of the key IT outsourcing market trends contributing to market growth. To deal with the competition in the market, organizations are outsourcing their IT application services to IT outsourcing providers. Meanwhile, IT outsourcing vendors have a proven track record of success in reducing operating costs and improving end-user experiences with a standardized approach. This methodology improves quality, limits risk, and reduces the time-to-market for new business functionalities. Moreover, many application outsourcers are offering global offshoring capabilities, which blend the global delivery model and provide clients with a skilled workforce. This, in turn, will boost the market growth in the coming years.
Key IT Outsourcing Market Challenge
Data privacy and security risks in cloud-based services is one of the factors hampering the IT outsourcing market growth. Cloud security management is a challenging task for vendors to protect online data. Enterprises, including SMEs and large enterprises, are outsourcing their IT activities as this offers various advantages, such as low operational costs and an increase in flexibility and scalability. Although IT outsourcing confers numerous benefits, it has a few associated security and privacy concerns. The lack of secure IT infrastructure and small internal budgets make SMEs more vulnerable to threats, resulting in cyber-attacks such as ransomware. These attacks result in the loss of the target company's sensitive data, financial theft, or disruption in business operations. Hence, data security concerns are becoming a great challenge for vendors outsourcing IT activities and are hampering the growth of the market.
This IT outsourcing market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.
Technavio categorizes the global IT outsourcing market as a part of the global IT consulting and other services market within the global IT services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the IT outsourcing market during the forecast period.
The report analyzes the market’s competitive landscape and offers information on several market vendors, including:
This statistical study of the IT outsourcing market encompasses successful business strategies deployed by the key vendors. The IT outsourcing market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The IT outsourcing market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the leading companies' production, sustainability, and prospects.
Our report provides extensive information on the value chain analysis for the IT outsourcing market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
40% of the market’s growth will originate from APAC during the forecast period. China and Japan are the key markets for IT outsourcing market in APAC. Market growth in this region will be faster than the growth of the market in other regions.
Another region offering significant growth to vendors is North America. The ease of virtualization and dynamic scaling will facilitate the IT outsourcing market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.
COVID Impact and Recovery Analysis
In 2020, the COVID-19 pandemic positively impacted the growth of the regional market. However, in 2021, the removal of lockdowns owing to the initiation of large-scale vaccination drives in various countries such as the US, Canada, and Mexico in North America, coupled with increased funding toward the development of IT infrastructure in end-user industries, including BFSI, healthcare, retail, and manufacturing, in 2021. Such factors are expected to lead to the growth of the market during the forecast period.
To gain further insights on the market contribution of various segments Request PDF Sample
The IT outsourcing market share growth in the infrastructure outsourcing segment will be significant during the forecast period. Infrastructure outsourcing provides solutions pertaining to network, storage, and applications related to cloud and virtualization. Additionally, flexibility in infrastructure outsourcing allows enterprises to enhance existing customer relationships, expand the customer base, and achieve new levels of innovation. These factors of infrastructure outsourcing will propel the market growth in the forecasted period.
This report provides an accurate prediction of the contribution of all the segments to the growth of the IT outsourcing market size and actionable market insights on the post-COVID-19 impact on each segment.
China IT Outsourcing Market - The market share is to grow at a CAGR of 25.01 percent over the period 2013-2018.
IT Business Process Outsourcing (BPO) market - The market share is expected to increase by USD 281.25 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 8.12%.
Africa IT Outsourcing market - The market share will grow at a CAGR of around 7% during the forecast period.
APAC IT Outsourcing market - The market share will grow at a CAGR of almost 6% during the forecast period.
Belarus IT Outsourcing market - The market share will grow at a CAGR of 17.78 percent over the period 2013-2018.
IT Outsourcing Market Scope |
|
Report Coverage |
Details |
Page number |
120 |
Base year |
2021 |
Forecast period |
2022-2026 |
Growth momentum & CAGR |
Decelerate at a CAGR of 4.12% |
Market growth 2022-2026 |
$117.24 million |
Market structure |
Fragmented |
YoY growth (%) |
4.47 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 40% |
Key consumer countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Competitive strategies, Consumer engagement scope |
Key companies profiled |
Accenture Plc, Acora Ltd, Amdocs Ltd., Atos SE, Capgemini Service SAS, CGI Inc, Cognizant Technology Solutions Corp., Fujitsu Ltd., Genpact Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Infosys Ltd., International Business Machines Corp., ITC infotech India Ltd., Tata Consultancy Services Ltd., Tech Mahindra Ltd, Unisys Corp., Wipro Ltd., Xerox Holdings Corp., and Larsen and Toubro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.