Market Size of IT Outsourcing Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 617.69 Billion |
| Market Size (2029) | USD 806.53 Billion |
| CAGR (2024 - 2029) | 5.48 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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IT Outsourcing Market Analysis
The IT Outsourcing Market size is estimated at USD 617.69 billion in 2024, and is expected to reach USD 806.53 billion by 2029, growing at a CAGR of 5.48% during the forecast period (2024-2029).
- Information Technology has become a competitive edge for most of the organization. Moreover, IT outsourcing has become more than a simple cost reduction process with the cloud migrations and options of cloud services. Therefore, this new form is mainly driven by organizational motivations in terms of customer experience, business growth, and competitive disruption.
- The rising adoption of cloud services since the outbreak of COVID-19 is anticipated to build a favorable market scenario for the IT outsourcing market growth as organizations using such services often outsource the maintenance and portion of development work to third parties.
- More importantly, such a rise in preference amongst the newer and even smaller organizations has led the key vendors of the market to increasingly concentrate on driving out a way to integrate the offshore team with the on-site. Another critical aspect driven by small-scale players is the agility in vendor offerings, which refers to the time-to-market.
- Cloud migration and adoption software have led outsourcing customers to divert resources from low-value assets to specialized employees while focusing on more flexible, tailorable, and evolution-friendly solutions.
- However, the lack of data security in cloud and server-based services is hindering the market's growth. Cloud-based services pose many specific security issues and challenges. Data is usually stored with a third-party provider and can be accessed over the internet in the cloud. This indicates that visibility and control over that data are limited. Nevertheless, growing demand for efficiency and scalable infrastructure and increasing cloud migration are driving the market.
