Dublin, May 06, 2024 (GLOBE NEWSWIRE) -- The "IT Outsourcing Global Market Report 2024" has been added to ResearchAndMarkets.com's offering.
The IT Outsourcing market size has grown from $122.93 billion in 2023 to $129.13 billion in 2024 at a compound annual growth rate (CAGR) of 5.1%. The growth observed in the historical period can be ascribed to factors such as cost reduction and efficiency, trends in globalization and offshoring, emphasis on core competencies, scalability and flexibility, regulatory compliance, risk mitigation, and access to specialized skills.
The IT Outsourcing market size is expected to see strong growth in the next few years, to reach $171.5 billion in 2028 at a compound annual growth rate (CAGR) of 7.4%. The anticipated growth in the forecast period can be linked to factors such as the prevalence of remote work and virtualization, concerns related to data privacy and compliance, integration of AI and automation, adoption of agile development practices, and a heightened focus on customer experience.
Key trends expected in the forecast period encompass an increasing demand for IT services, the imperative for cost savings, the growing complexity of IT systems, the ongoing trend of digital transformation, the prominence of cloud computing, and an escalated emphasis on cybersecurity.
The anticipated surge in the adoption of cloud services is expected to drive the growth of the IT Outsourcing market in the future. Cloud services amalgamate computation, storage, and network infrastructure to facilitate swift application development and dynamic scaling. The increasing prevalence of IT Outsourcing allows access to broader global markets. These IT Outsourcing functionalities ensure scalability, facilitate easier access to subject matter experts, reduce costs, and enable the allocation of resources to core business development.
For instance, the 2022 State of DevOps Report by Google, a US-based technology company, revealed that in 2022, 26% of users reported using multiple public clouds, up from 21% in 2021. Additionally, the utilization of hybrid clouds increased from 25% to 42.5%. Consequently, the growing adoption of cloud computing is propelling the expansion of the IT consulting market.
The rising demand in the retail and e-commerce sector is poised to propel the growth of the IT Outsourcing market. The retail industry encompasses businesses engaged in selling goods or services directly to end consumers for personal use, while e-commerce involves the online buying and selling of goods and services. Outsourcing IT services in the retail and e-commerce industry enhances operational efficiency and cost-effectiveness, provides access to skilled expertise, and improves scalability, flexibility, and adaptability. This approach can lead to faster development cycles for software and applications, reducing time-to-market for new products or features in the e-commerce space.
For example, in September 2023, according to census.gov, retail trade sales increased by 0.6% from July 2023 and by 1.6% from 2022. Moreover, in August 2023, the estimate for e-commerce in the second quarter of 2023 increased by 7.5% compared to the second quarter of 2022. Overall retail sales increased by 0.6%, with 15.4% of all sales in the second quarter of 2023 made through online stores. Thus, the increasing demand in the retail and e-commerce industry is driving the growth of the IT Outsourcing market.
Prominent companies in the IT Outsourcing market are directing their efforts toward innovative products, such as security management outsourcing services, to boost revenues. Security management outsourcing involves contracting with a third-party supplier to oversee various aspects of an organization's security requirements. For instance, in July 2023, NTT Data Corporation, a Japan-based IT services company, launched a security management outsourcing service called Managed Detection and Response (MDR). This service, delivered by highly skilled security engineers with over twenty years of experience, aims to reduce incident damage and prevent occurrences within the context of the company's computer security incident response team (CSIRT). This strategic move addresses the challenges in the evolving corporate environment, where defending against complex cyberattacks is increasingly difficult due to factors such as remote work, diverse supplier chains, and rapid AI development.
The services encompassed in IT Outsourcing include Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). SaaS involves the distribution of software by a cloud provider, who hosts programs and makes them accessible to end-users via the internet. The entities engaged in IT Outsourcing range from small and medium enterprises to large enterprises, deployed on both public and private clouds. This practice finds application in various sectors such as banking, financial services, and insurance (BFSI), healthcare, media and telecommunications, retail and e-commerce, manufacturing, and others.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Report Scope
Markets Covered:
- By Service: Software as a Service (SaaS); Platform as a Service (PaaS); Infrastructure as a Service (IaaS)
- By Deployment: Public Cloud; Private Cloud
- By Organization Size: Small and Medium Enterprises; Large Enterprises
- By End-user: Banking, Financial Services and Insurance (BFSI); Healthcare; Media and Telecommunication; Retail and E-Commerce; Manufacturing; Other End-users
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time Series: Five years historic and ten years forecast
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita
Data Segmentation: Country and regional historic and forecast data, market share of competitors, market segments
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 200 |
| Forecast Period | 2023 - 2027 |
| Estimated Market Value (USD) in 2023 | $124.52 billion |
| Forecasted Market Value (USD) by 2027 | $150.06 billion |
| Compound Annual Growth Rate | 4.8% |
| Regions Covered | Global |
Companies Profiled:
- IBM
- Accenture plc
- NTT Corporation
- Capgemini SE
- Dell Technologies Inc.
- Fujitsu Limited
- BMC Software Inc.
- Hewlett Packard Enterprise Company
- Broadcom Inc.
- DXC Technologies
- Infosys Limited
- Tata Consultancy Services Ltd.
- Cognizant Technology Solutions Corporation
- Wipro Limited
- Red Hat Inc.
- VMware Inc.
- Adaptive Computing Enterprises Inc.
- Amadeus IT Group SA
- Andela Inc.
- Atos SE
- CGI Inc.
- EPAM Systems Inc.
- Genpact Limited
- GlobalLogic Inc.
- Happiest Minds Technologies Limited
- HCL Technologies Ltd.
- Hexaware Technologies Limited
- Intetics Inc.
- Larsen & Toubro Infotech Limited
- Mindfire Solutions
- LTIMindtree Limited
- Mphasis Limited
- NIIT Technologies Limited
- Pointwest Technologies
- PSL Corp.
- Softura Inc.
- Tech Mahindra Limited
- Virtusa Corporation
- WNS Global Services
For more information about this report visit https://www.researchandmarkets.com/r/tedu5s
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