Size of the IT services outsourcing market to a value of around USD

LOS ANGELES, Aug. 26, 2022 (GLOBE NEWSWIRE) — Recently announced report on “IT services outsourcing market – Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook and Forecast 2022-2030”.

Regional Ssnapshots

The Asia-Pacific region is expected to have the largest market share in the coming years due to the large amount of outsourcing happening in these regions. China and India are the most popular destinations for outsourced work. Most companies based in the United States find India and China extremely attractive for outsourcing their functions as these countries offer cost-effective solutions and the presence of a talented workforce is expected to drive the market growth in the years to come.

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When it comes to China, it will offer better opportunities in the future due to its lower cost compared to India. The income generated by the outsourced work has been extremely beneficial for improving the economy of this region. Even though this region is extremely efficient in manufacturing many products due to the availability of cheap labor, it aims to be an outsourcing hub for the IT related functions in the years to come. India has dominated the outsourcing market for the past 25 years. This region has a lot of outsourced work and happens to be a preferred destination for most companies around the world. There is a growing demand for the development of various software and it is expected to grow in the coming years

Other regions preferred for outsourced work are Japan, Vietnam and Indonesia.

The central theses:

  • In 2021, the offshore segment had a market share of around 52%.
  • In 2021, the onshore segment has achieved a 48% market share.
  • The North America region contributed a 42% market share in 2021.
  • The Asia-Pacific region has achieved a market share of 36% in 2021.

report Hlights

  • The banking and finance segment will dominate the market in the coming years as these industries invest more in automation. The e-commerce and retail segment is also expected to grow well during the forecast period owing to the entry of various startups. Increased use of virtual reality and artificial intelligence in the retail and online platforms will drive the market growth. There is a growing demand for software that will be beneficial to healthcare providers. There is a growing demand for software applications for the medical industry.
  • The offshore segment will grow well during the forecast. As it offers cost benefits and also helps in providing talented workforce. Many companies prefer the Asia-Pacific countries to outsource their work. In the years to come, demand for onshore segment value will grow as it offers many benefits of communicating effectively and operating in the same time zone. Since the magician and the seller are in the same country, these two forms or are subject to the same rule, which happens to be a major driving force.
  • Based on the service, the application business segment will grow well over the forecast period. The demand for cloud computing and infrastructure zoning has increased. Most of the traditional methods used in the organizations are being replaced by automation. Providers are also trying to automate their services more.
  • The growing popularity of the e-commerce segment and the increasing use of smartphones will drive the market. Many companies outsource their after-sales services or helpdesk services to other companies as it is helpful in reducing the time spent on these activities and the costs these companies incur. It is also beneficial as it helps improve focus on the company’s core processes.

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scope of the report

report attributes details
Market size in 2021 $530.15 billion
Sales forecast up to 2030 $1.06 trillion
CAGR 8.06% from 2022 to 2030
Biggest Market Asia Pacific
base year 2021
forecast year 2022 to 2030
key figures Accenture, Cognizant, Capgemini, Infosys, IBM, HP, Oracle

market Ddynamics

driver

Demand for these outsourcing services has increased and some of the companies may be facing labor shortages. And there is a growing demand for using the virtual software which would be helpful in fulfilling many functions for the business. The time and cost associated with hiring new employees will be one of the reasons why there is a greater demand for outsourcing. Due to an increase in project-related jobs, the demand for outsourcing is expected to increase. Depending on requirements, more staff can be hired or staff can be reduced.

All project goals are achieved without wasting time on training. It also helps in providing improved security. Outsourcing has proven to be extremely beneficial for cybersecurity. To reduce costs, many market players are focusing on outsourcing their functions. Outsourcing also helps improve focus on core activities.

limitations

Due to the outsourcing of various functions, new personnel are involved in the operation, giving the main organization less control over the activities. When a business function is outsourced, the secondary governing body shall not perform the responsibilities that the entity specifies through similar standards. The quality of the services may also be affected. If less qualified personnel are hired for different functions, the quality of service will also be badly affected.

occasions

Due to the availability of qualified and certified personnel, the market is expected to grow in the coming years. The availability of labor offered at lower cost will also drive the market growth in the years to come. Organizations’ efficiency and competitiveness improved by outsourcing fewer services. Creating growth opportunities is the risk sharing factor. The increased use of high-end technologies in these outsourced regions will offer better growth opportunities.

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challenges

The drafting of the contract or drafting of the contract between the service provider and the outsourcer must be complete. The organizations should enlist the help of legal experts to keep the business going. Any political unrest between countries will have a big impact on this business and it is a big challenge for growth. Outsourcing any function of the business can change the quality of services offered to consumers. Over time, it can also damage the company’s reputation. As the quality of the services offered deteriorates, customer satisfaction also suffers, and these are the major challenges in growing the market.

Recent Developments

  • Infosys had worked with Telenor Norway in 2022. This collaboration aims to transform the supply chain operations as well as the finance operations of these organizations.

market segmentenation

after service

  • application
  • networking
  • data center operations
  • counseling center
  • New technology
  • Other

By location

By end users

  • BFSI
  • healthcare
  • Aerospace and Defense
  • telecom and media

According to geography

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa (MEA)

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