Aug 07, 2020 (AB Digital via COMTEX) -- IT Services Outsourcing Market Trends & Growth
The global IT services outsourcing market size is anticipated to reach USD 937.6 billion by 2027 registering a CAGR of 7.7%, according to a new report by Grand View Research, Inc. Rising need to reduce operational costs and the lack of in-house information technology engineering talent are anticipated to drive the industry over the forecast period. The IT operations subcontracting industry is witnessing an upsurge in core information technology activities, not just to save capital, but to benefit from skilled and experienced professionals to deliver superior quality solutions.
A significant number of small-to-medium businesses are likely to fully outsource their IT operations owing to their constrained infrastructure capacities and agile methodologies. Rapid transformation of business models to keep pace with the emerging technologies, such as Artificial Intelligence (AI), Internet-of-Things (IoT), Robotic Process Automation (RPA), blockchain, and deep learning, are expected to drive the market. Onshoring of IT services as against offshoring is likely to grow at a considerable rate over the forecast period.
This may be attributed to better reliability, control, responsiveness, market knowledge, and ease of communication. Companies have started subcontracting application development and maintenance services to onshore service providers to reduce hidden costs of offshoring. The industry is beholding new markets for subcontracting IT operations such that companies ensure focus on their core business and leverage advanced technologies with full capacity to manage the corporate environment. However, captive centers and data-security related concerns are a constant roadblock to the otherwise growing industry.
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IT Services Outsourcing Market Report Highlights
Service providers are shifting towards standardization of IT outsourcing solutions as against customized ones. They are also relying profoundly on mass automation devices, which will create further opportunities and decrease the workforce necessary to back critical corporate applications
The retail & e-commerce end-use segment is projected to grow at the highest CAGR over the forecast period owing to the ever-increasing demand for modernized solutions
Asia Pacific is estimated to be the fastest-growing regional market during the forecast period owing to easy availability of skilled staff, a better quality of IT solutions, and low costs of projects
Evolving markets of APAC, such as Philippines, Thailand, and Vietnam, are the new outsourcing destinations, which boost the region’s growth
Some of the key companies in the market are Accenture PLC; IBM Corp.; Fujitsu Ltd.; Hewlett Packard Enterprise Development LP; and SAP SE
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IT Services Outsourcing Market Segmentation
Grand View Research has segmented the global IT services outsourcing market on the basis of service, location, end use, and region:
IT Services Outsourcing Service Outlook (Revenue, USD Billion, 2016 - 2027)