Skip to main content
  1. Market Insights
  2. Technology
  3. IT Services

IT Outsourcing - Singapore

Singapore
  • In 2025, the projected revenue in the IT Outsourcing market in Singapore is expected to reach US$5.10bn.
  • This indicates a positive growth trend in the industry.
  • It is estimated that the market will continue to expand at an annual growth rate of 8.36% between 2025 and 2029.
  • By the end of 2029, the market volume is predicted to reach US$7.04bn.
  • Additionally, the average spend per employee in the IT Outsourcing market is projected to be US$1.37k in 2025.
  • This figure serves as an indicator of the financial investment made by companies in Singapore towards IT outsourcing services.
  • In terms of global comparison, it is noteworthy that United States is predicted to generate the highest revenue in the IT Outsourcing market, with an estimated value of US$213.57bn in 2025.
  • This further emphasizes the dominance of the United States in the global IT Outsourcing market industry.
  • Singapore's IT outsourcing market is thriving due to its highly skilled workforce and strong government support.

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

  • Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
  • Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
  • Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
  • Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

For more information on the data displayed, use the info button right next to the boxes.

In-Scope
  • Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
  • Administration outsourcing, such as Conduent, Genpact, and ADP (Automatic Data Processing)
  • Web hosting, such as GoDaddy, Bluehost, and Amazon Web Services
  • Infrastructure outsourcing, such as IBM Global Technology Services, Wipro Infrastructure Engineering, and Cognizant Infrastructure Services
Out-Of-Scope
  • Business process outsourcing, such as IBM, Infosys, and NTT Data
  • Professional payment outsourcing, such as Paychex, ADP (Automatic Data Processing), and WNS Global Services
  • Infrastructure as a service, such as Microsoft Azure, Alibaba Cloud, and DigitalOcean
  • Platform as a service, such as Microsoft Azura, Google Cloud, and Engine Yard
  • Non-IT related outsourcing
IT Outsourcing: market data & analysis - Cover

Market Insights report

IT Outsourcing: market data & analysis
Study Details

    Revenue

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

    Most recent update: Apr 2024

    Source: Statista Market Insights

    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

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

    Most recent update: Apr 2024

    Source: Statista Market Insights

    Key Players

    Most recent update: Dec 2024

    Source: Statista Market Insights

    Analyst Opinion

    Singapore, known for its advanced technological infrastructure and skilled workforce, has emerged as a leading player in the global IT outsourcing market.

    Customer preferences:
    Businesses in Singapore have shown a strong preference for IT outsourcing services due to the cost-saving benefits and access to specialized expertise. The demand for IT outsourcing services is particularly high in industries such as finance, healthcare, and logistics, where technology plays a critical role in business operations.

    Trends in the market:
    One of the key trends in the IT outsourcing market in Singapore is the growing popularity of cloud-based outsourcing solutions. Cloud-based outsourcing provides businesses with greater flexibility, scalability, and cost-efficiency, making it an attractive option for companies of all sizes. Another trend is the increasing adoption of emerging technologies such as artificial intelligence and blockchain, which are driving demand for specialized IT outsourcing services.

    Local special circumstances:
    Singapore's strategic location and business-friendly environment have made it an attractive destination for multinational corporations seeking to outsource their IT operations. The country's strong intellectual property laws, efficient legal system, and stable political environment further enhance its appeal as a business destination.

    Underlying macroeconomic factors:
    Singapore's robust economy and government support for the technology industry have contributed to the growth of the IT outsourcing market. The country's highly skilled workforce, advanced technological infrastructure, and favorable business environment have also played a key role in attracting foreign investment and driving demand for IT outsourcing services. Finally, Singapore's status as a regional hub for finance, logistics, and healthcare has further fueled demand for IT outsourcing services in these industries.

    Global Comparison

    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.

    Technology

    Access more Market Insights on Technology topics with our featured report

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

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Jan 2025

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    IT services - Statistics & Facts

    Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.
    More data on the topic

    Contact

    Get in touch with us. We are happy to help.