IT Outsourcing - Worldwide

  • Worldwide
  • The IT Outsourcing market is expected to witness impressive growth worldwide.
  • According to projections, the market's revenue is set to reach a staggering US$591.20bn by 2025.
  • This growth trajectory is expected to continue, with a projected compound annual growth rate (CAGR) of 8.28% from 2025 to 2029, resulting in a market volume of US$812.70bn by 2029.
  • In terms of spend per employee, the average is projected to reach US$164.60 in 2025.
  • This figure provides insight into the significant investments companies are willing to make in IT Outsourcing market services to ensure efficiency and cost-effectiveness.
  • When looking at global comparison, it is evident that the United States will dominate the market, generating the highest revenue of US$213.60bn in 2025.
  • This highlights the country's strong position and influence in the IT Outsourcing market sector.
  • The IT Outsourcing market in India continues to thrive, with a highly skilled workforce and cost-effective solutions attracting global clients.

Key regions: Brazil, Italy, United States, China, Germany

Market
Region
Region comparison
Currency

Revenue

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

in trillion USD (US$)

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Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

Most recent update: Apr 2024

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

in percent

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Most recent update: Apr 2024

Source: Statista Market Insights

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Source: Statista Market Insights

Technology

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IT Outsourcing: market data & analysis - Background IT Outsourcing: market data & analysis - Cover

Key Players

in percent

2023
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Most recent update: Dec 2024

Source: Statista Market Insights

Analyst Opinion

The IT Outsourcing market has been rapidly growing worldwide in recent years, driven by a variety of factors such as cost reduction, access to skilled labor, and increased efficiency.

Customer preferences:
Many companies are choosing to outsource their IT services to countries with a lower cost of living and lower labor costs. This allows them to save money while still receiving high-quality services. Additionally, companies are increasingly seeking out IT outsourcing providers that offer specialized services, such as cybersecurity or cloud computing.

Trends in the market:
In India, the IT outsourcing market has been growing steadily due to the country's large pool of skilled IT professionals and lower labor costs. However, there has been a recent trend towards more onshoring as companies seek to reduce the risks associated with outsourcing to a foreign country. In China, the IT outsourcing market is also growing rapidly, driven by the country's large population and increasing technological capabilities. However, there are concerns about intellectual property theft and data security in the country.

Local special circumstances:
In Latin America, the IT outsourcing market is growing due to the region's proximity to the United States and the availability of skilled labor. However, there are challenges such as language barriers and political instability in some countries. In Eastern Europe, the IT outsourcing market is also growing rapidly due to the region's highly skilled IT professionals and lower labor costs. However, there are concerns about data security and political instability in some countries.

Underlying macroeconomic factors:
The growth of the IT outsourcing market is largely driven by macroeconomic factors such as globalization, technological advancements, and the increasing demand for specialized IT services. Additionally, the COVID-19 pandemic has accelerated the trend towards remote work and increased the demand for IT outsourcing services. However, there are also risks associated with outsourcing, such as data security and intellectual property theft, which companies must carefully consider before making a decision.

Global Comparison

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Notes: Data was converted from local currencies using average exchange rates of the respective year.

Most recent update: Apr 2024

Sources: Statista Market Insights , Financial Statements of Key Players , National statistical offices

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

Key Market Indicators

The following Key Market Indicators give an overview of the social and economic outlook of the selected region and provide additional insights into relevant market-specific developments. These indicators, together with data from statistical offices, trade associations and companies serve as the foundation for the Statista market models.

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