IT Services Outsourcing Market

IT Services Outsourcing Market by End-users (Retail & E-commerce, BFSI, Telecom & Media, Aerospace & Defense, Healthcare, and Others), Services (Managed Security Operations, Helpdesk Services, Emerging Technology Services, Network Operations, Infrastructure Capacity Services, Data Center Operations, Application Services, and Others), Locations (Off-shore and On-shore), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

  • Report ID: ICT-SE-3172
  • Author: Growth Market Reports
  • Rating: 4.3
  • Total Reviews: 33
  • No. Of Pages: 200
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The global IT services outsourcing market size was valued at USD 556.65 billion in 2020 and is anticipated to expand at a high CAGR during the forecast period, 2021–2028. The growth of the market is attributed to escalating demand of consultancy related projects and outsourcing of IT services, which substantially reduces business operational costs of company.

IT Services Outsourcing Market

IT outsourcing refers to the use of external service provider to efficiently and effectively deliver IT-enabled business process, infrastructure solution for business outcomes, and application service. It is a service related to technical expertise that enable organizations to access, manage, optimize, and create insightful business information as well as effective processes. Outsourced service provider also provides data backup and restoration services as a part of the service provided by internal IT organization or external service provider.

The COVID-19 pandemic outbreak has brought positive impact on the market due to increased digital adoption by IT companies. As companies are reorganizing business strategies to upgrade tech solutions leading to outsourcing the services to achieve this faster. Additionally, workplace transformation from office working to remote working lead to outsourcing the services, which are specifically designed for remote business.

Market Trends, Drivers, Restraints, and Opportunities

  • Rising caution about data safety and customer-centricity in projects by business organizations is a key factor driving the market growth.
  • Increasing trend for outsourcing of tedious and time-consuming tasks to service providers allows to focus on organizations core function and reduces the work load on their internal resources. This is projected to drive the market expansion during the forecast period.
  • Increasing count of global in-house centers of companies is a key restraining factor. This is expected to hamper the market growth during the projected timeline.
  • Rising security issues while outsourcing to third party service provider acts as a major challenge that can restrict the market growth.
  • Offering cloud-based services to organizations and advancement of technology in It services are projected to create significant growth opportunities for the market.

Scope of the Report

The report on the global IT services outsourcing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Attributes

Details

Report Title

IT Services Outsourcing Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

Segmentation

End-Users (Retail & E-commerce, BFSI, Telecom & Media, Aerospace & Defense, Healthcare, and Others), Services (Managed Security Operations, Helpdesk Services, Emerging Technology Services, Network Operations, Infrastructure Capacity Services, Data Center Operations, Application Services, and Others), and Locations (Off-shore and On-shore)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

Key Players Covered in the Report

IBM Corp.; Hewlett Packard Enterprise Development LP; Cognizant; NTT Data Corp.; Accenture PLC; Fujitsu Limited; SAP SE Corp.; Infosys Limited; Oracle Corp.; and Capgemini

Market Segment Insights

BFSI segment is expected to grow at a rapid pace

Based on end-users, the global IT services outsourcing market is divided into retail & E-commerce, BFSI, telecom & media, aerospace & defense, healthcare, and others. The BFSI segment is expected to grow at a rapid pace during the forecast period attributed to its escalating investment in cyber security, automation, and Artificial Intelligence-based conversational systems. However, the healthcare segment is anticipated to expand at a substantial CAGR during the forecast period due to increasing demand of customized software from healthcare providers. Additionally, digital management of healthcare information is important in the healthcare sector and various players outsourcing their IT solutions and services to the healthcare sector to ensure safety of data and information related to patients.

IT Services Outsourcing Market

Infrastructure capacity services segment to expand at a considerable CAGR

In terms of services, the market is segregated into managed security operations, helpdesk services, emerging technology services, network operations, infrastructure capacity services, data center operations, application services, and others. The managed security operations segment is expected to account for a major market share during the projected timeline owing to rise in demand for threat management, vigilance of data security, and governance & compliance. On the other hand, the infrastructure capacity service segment is projected to expand at a considerable CAGR during the projected period due to rapid deployment of cloud computing, infrastructure design & implementation, and remote infrastructure management to organizations.

Off-shore segment to account for a significant market share.

On the basis of locations, the global IT services outsourcing market is bifurcated into off-shore and on-shore. The off-shore segment is expected to account for a significant market share during the forecast period owing to wide requirement of off-shoring IT operations for emerging economies. Off-shore operations provides several advantages such as availing cost benefits, fulfillment of offset obligations, and mitigation of currency risks. However, the on-shore segment is anticipated to register a substantial growth rate during the projected timeline owing to reduction in indirect costs of quality lapse, security & intellectual property risks, and communication gap risks.

North America is anticipated to constitute a key market share

In terms of region, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to fast and early adoption of new technologies and expansion of IT sector in the region. However, the Asia Pacific market is anticipated to expand at a rapid pace during the forecast period due to rising partnerships in IT service providers and business in several countries of the region.

IT Services Outsourcing Market

Segments

The global IT service outsourcing market has been segmented on the basis of

 End-users

  • Retail & E-commerce
  • BFSI
  • Telecom & Media
  • Aerospace & Defense
  • Healthcare
  • Others

Services

  • Managed Security Operations
  • Helpdesk Services
  • Emerging Technology Services
  • Network Operations
  • Infrastructure Capacity Services
  • Data Center Operations
  • Application Services
  • Others

Locations

  • Off-shore
  • On-shore

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • IBM Corp.
  • Hewlett Packard Enterprise Development LP
  • Cognizant
  • NTT Data Corp.
  • Accenture PLC
  • Fujitsu Limited
  • SAP SE Corp.
  • Infosys Limited
  • Oracle Corp.
  • Capgemini

Competitive Landscape

Key players competing in the global IT services outsourcing market are IBM Corp.; Hewlett Packard Enterprise Development LP; Cognizant; NTT Data Corp.; Accenture PLC; Fujitsu Limited; SAP SE Corp.; Infosys Limited; Oracle Corp.; and Capgemini.

Companies are now focusing on quality of service, cost effectiveness, and innovations in their services to enhance their competitive position in the market. In February 2021, VMware and Accenture PLC announced to set up a dedicated business group that aimed at helping business to adopt cloud-first strategy and expanded their partnership.

IT Services Outsourcing Market

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. IT Services Outsourcing Market Overview
  4.1. Introduction
     4.1.1. Market Taxonomy
     4.1.2. Market Definition
  4.2. Macro-Economic Factors
     4.2.1. Industry Outlook
  4.3. IT Services Outsourcing Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. IT Services Outsourcing Market - Supply Chain
  4.5. Global IT Services Outsourcing Market Forecast
     4.5.1. IT Services Outsourcing Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. IT Services Outsourcing Market Size (000’ Units) and Y-o-Y Growth
     4.5.3. IT Services Outsourcing Market Absolute $ Opportunity
5. Global IT Services Outsourcing Market Analysis and Forecast by Region
  5.1. Market Trends
  5.2. Introduction
     5.2.1. Basis Point Share (BPS) Analysis by Region
     5.2.2. Y-o-Y Growth Projections by Region
  5.3. IT Services Outsourcing Market Size and Volume Forecast by Region
     5.3.1. North America
     5.3.2. Latin America
     5.3.3. Europe
     5.3.4. Asia Pacific
     5.3.5. Middle East and Africa (MEA)
  5.4. Absolute $ Opportunity Assessment by Region
  5.5. Market Attractiveness/Growth Potential Analysis by Region
  5.6. Global IT Services Outsourcing Demand Share Forecast, 2019-2026
6. North America IT Services Outsourcing Market Analysis and Forecast
  6.1. Introduction
     6.1.1. Basis Point Share (BPS) Analysis by Country
     6.1.2. Y-o-Y Growth Projections by Country
  6.2. North America IT Services Outsourcing Market Size and Volume Forecast by Country
     6.2.1. U.S.
     6.2.2. Canada
  6.3. Absolute $ Opportunity Assessment by Country
  6.4. Market Attractiveness/Growth Potential Analysis
     6.4.1. By Country
     6.4.2. By Product Type
     6.4.3. By Application
  6.5. North America IT Services Outsourcing Demand Share Forecast, 2019-2026
7. Latin America IT Services Outsourcing Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
     7.1.3. Latin America Average Pricing Analysis
  7.2. Latin America IT Services Outsourcing Market Size and Volume Forecast by Country
      7.2.1. Brazil
      7.2.2. Mexico
      7.2.3. Rest of Latin America
   7.3. Absolute $ Opportunity Assessment by Country
  7.4. Market Attractiveness/Growth Potential Analysis
     7.4.1. By Country
     7.4.2. By Product Type
     7.4.3. By Application
  7.5. Latin America IT Services Outsourcing Demand Share Forecast, 2019-2026
8. Europe IT Services Outsourcing Market Analysis and Forecast
  8.1. Introduction
     8.1.1. Basis Point Share (BPS) Analysis by Country
     8.1.2. Y-o-Y Growth Projections by Country
     8.1.3. Europe Average Pricing Analysis
  8.2. Europe IT Services Outsourcing Market Size and Volume Forecast by Country
     8.2.1. Germany
     8.2.2. France
     8.2.3. Italy
     8.2.4. U.K.
     8.2.5. Spain
     8.2.6. Russia
     8.2.7. Rest of Europe
  8.3. Absolute $ Opportunity Assessment by Country
  8.4. Market Attractiveness/Growth Potential Analysis
     8.4.1. By Country
     8.4.2. By Product Type
     8.4.3. By Application
  8.5. Europe IT Services Outsourcing Demand Share Forecast, 2019-2026
9. Asia Pacific IT Services Outsourcing Market Analysis and Forecast
  9.1. Introduction
     9.1.1. Basis Point Share (BPS) Analysis by Country
     9.1.2. Y-o-Y Growth Projections by Country
     9.1.3. Asia Pacific Average Pricing Analysis
  9.2. Asia Pacific IT Services Outsourcing Market Size and Volume Forecast by Country
     9.2.1. China
     9.2.2. Japan
     9.2.3. South Korea
     9.2.4. India
     9.2.5. Australia
     9.2.6. Rest of Asia Pacific (APAC)
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Market Attractiveness/Growth Potential Analysis
     9.4.1. By Country
     9.4.2. By Product Type
     9.4.3. By Application
  9.5. Asia Pacific IT Services Outsourcing Demand Share Forecast, 2019-2026
10. Middle East & Africa IT Services Outsourcing Market Analysis and Forecast
  10.1. Introduction
     10.1.1. Basis Point Share (BPS) Analysis by Country
     10.1.2. Y-o-Y Growth Projections by Country
     10.1.3. Middle East & Africa Average Pricing Analysis
  10.2. Middle East & Africa IT Services Outsourcing Market Size and Volume Forecast by Country
     10.2.1. Saudi Arabia
     10.2.2. South Africa
     10.2.3. UAE
     10.2.4. Rest of Middle East & Africa (MEA)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Market Attractiveness/Growth Potential Analysis
     10.4.1. By Country
     10.4.2. By Product Type
     10.4.3. By Application
  10.5. Middle East & Africa IT Services Outsourcing Demand Share Forecast, 2019-2026
11. Competition Landscape
  11.1. Global IT Services Outsourcing Market: Market Share Analysis
  11.2. IT Services Outsourcing Distributors and Customers
  11.3. IT Services Outsourcing Market: Competitive Dashboard
  11.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)

The global IT service outsourcing market has been segmented on the basis of

 End-users

  • Retail & E-commerce
  • BFSI
  • Telecom & Media
  • Aerospace & Defense
  • Healthcare
  • Others

Services

  • Managed Security Operations
  • Helpdesk Services
  • Emerging Technology Services
  • Network Operations
  • Infrastructure Capacity Services
  • Data Center Operations
  • Application Services
  • Others

Locations

  • Off-shore
  • On-shore

Regions

  • Asia Pacific
  • North America
  • Latin America
  • Europe
  • Middle East & Africa

Key Players

  • IBM Corp.
  • Hewlett Packard Enterprise Development LP
  • Cognizant
  • NTT Data Corp.
  • Accenture PLC
  • Fujitsu Limited
  • SAP SE Corp.
  • Infosys Limited
  • Oracle Corp.
  • Capgemini

Key players competing in the global IT services outsourcing market are IBM Corp.; Hewlett Packard Enterprise Development LP; Cognizant; NTT Data Corp.; Accenture PLC; Fujitsu Limited; SAP SE Corp.; Infosys Limited; Oracle Corp.; and Capgemini.

Companies are now focusing on quality of service, cost effectiveness, and innovations in their services to enhance their competitive position in the market. In February 2021, VMware and Accenture PLC announced to set up a dedicated business group that aimed at helping business to adopt cloud-first strategy and expanded their partnership.

IT Services Outsourcing Market

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