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It Outsourcing is Witnessing Significant Growth Due To Digital Transformation, Driving Businesses To Rely More On IT Services Outsourcing for A Competitive Edge. IT Support Outsourcing Has Evolved Beyond Cost-Cutting, With Cloud Services Migrations Fueling This Shift. IT Managed Services, Particularly Application Development and Maintenance, are in High Demand, With Companies Like Slack and Alibaba Capitalizing On IT Offshoring. The Market is Highly Competitive and Fragmented, With IT Contracting, It Service Management, It Business Process Outsourcing, and IT Infrastructure Outsourcing Playing Crucial Roles.
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Explore the IT Outsourcing Global Market Report 2025 Market trends! Covers key players, growth rate 7.2% CAGR, market size $150.48 Billion, and forecasts to 2033. Get insights now!
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The global IT outsourcing market size reached USD 600.9 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 835.5 Billion by 2033, exhibiting a growth rate (CAGR) of 3.64% during 2025-2033. The constant pressure to minimize expenses and increase profitability, the ever-changing regulatory landscape, and the escalating demand for the latest technologies and IT specialized skill sets are among the key factors driving the market growth.
Report Attribute
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Key Statistics
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Base Year
| 2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 600.9 Billion |
Market Forecast in 2033 | USD 835.5 Billion |
Market Growth Rate 2025-2033 | 3.64% |
IMARC Group provides an analysis of the key trends in each segment of the IT outsourcing market report, along with forecasts at the global, regional and country levels for 2025-2033. Our report has categorized the market based on service model, organization size and end user.
The global revenue in the 'IT Outsourcing' segment of the IT services market was forecast to continuously increase between 2024 and 2029 by in total 271.7 billion U.S. dollars (+50.22 percent). After the ninth consecutive increasing year, the indicator is estimated to reach 812.71 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'IT Outsourcing' segment of the IT services market was continuously increasing over the past years.Find more information concerning Canada and Sweden. The Statista Market Insights cover a broad range of additional markets.
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The United States IT Outsourcing Market is Segmented by Service Type (Application Outsourcing, and Infrastructure Outsourcing), Organization Size (SMEs, and Large Enterprises), Industry (banking, Financial Services, Insurance, IT and Telecom, Manufacturing, Healthcare, Government, and Public Sector, Retail, and E-Commerce, Energy, Utilities, and Mining). The Market Size and Forecasts are Provided in Terms of Value in USD for all the Above Segments.
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The report covers Healthcare IT Outsourcing Market Marketing and the market is Segmented by Type (Payers HCIT Outsourcing (Hospital Information System, Laboratory Information System, Radiology Information System, Electronic Medical Records, and Other Types), Providers HCIT Outsourcing (Revenue Cycle Management System and Healthcare Analytics)), End User(Healthcare Provider System, Biopharmaceutical Industry, Clinical Research Organization and Other End Users), and Geography (North America, Europe, Asia-Pacific, Middle East And Africa, and South America). The market provides the value (in USD million) for the above-mentioned segments.
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The global healthcare IT outsourcing market size reached USD 54.3 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 103.3 Billion by 2033, exhibiting a growth rate (CAGR) of 7.34% during 2025-2033. The increasing complexity of healthcare IT systems, the rising threat of cyberattacks on healthcare data, the competitive nature of the healthcare industry, the exponential growth of healthcare data, and the evolving healthcare regulations are some of the factors propelling the market.
Report Attribute
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Key Statistics
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---|---|
Base Year
| 2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 54.3 Billion |
Market Forecast in 2033 | USD 103.3 Billion |
Market Growth Rate 2025-2033 | 7.34% |
IMARC Group provides an analysis of the key trends in each segment of the global healthcare IT outsourcing market report, along with forecasts at the global, regional and country levels for 2025-2033. Our report has categorized the market based on type and end user.
The revenue in the 'IT Outsourcing' segment of the IT services market in France was forecast to continuously increase between 2024 and 2029 by in total 11.3 billion U.S. dollars (+43.99 percent). After the ninth consecutive increasing year, the indicator is estimated to reach 36.98 billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'IT Outsourcing' segment of the IT services market was continuously increasing over the past years.Find further information concerning Belgium and the Netherlands. The Statista Market Insights cover a broad range of additional markets.
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According to Cognitive Market Research, the global IT Services Outsourcing market size will be USD 642514.2 million in 2024. It will expand at a compound annual growth rate (CAGR) of 8.50% from 2024 to 2031.
North America held the major market share for more than 40% of the global revenue with a market size of USD 257005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 192754.26 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 147778.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.5% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 32125.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 12850.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
The Emerging Technology Services segment category is the fastest growing segment of the IT Services Outsourcing industry
Market Dynamics of IT Services Outsourcing Market
Key Drivers for IT Services Outsourcing Market
Growing complexity of IT systems requires managed services for efficiency.
The increasing complexity of IT systems presents significant challenges for organizations aiming to maintain operational efficiency and effectiveness. As businesses integrate various technologies, such as cloud computing, big data analytics, and IoT devices, they face a multitude of interconnected components that demand specialized knowledge and management. This complexity necessitates the adoption of managed services, which provide expert oversight and streamlined processes to ensure that IT infrastructures function optimally. Managed service providers (MSPs) offer tailored solutions, allowing businesses to leverage advanced technologies without needing in-house expertise. By outsourcing these services, organizations can reduce downtime, enhance system performance, and free up internal resources to focus on core business objectives, ultimately driving innovation and competitiveness in an increasingly digital landscape. For instance, Accenture, a consulting firm, plans to make significant investments in its Data & AI practice over the next three years. The investment is expected to aid the company's clients across all industries in their rapid and sustainable transformation, as well as to apply artificial intelligence to achieve higher growth, efficiency, and resilience. Accenture's Data & AI practice expands to provide more industry solutions and pre-built models to clients in a number of industries.
Businesses seek flexibility and scalability through outsourced IT services
In today's rapidly evolving business environment, flexibility and scalability are critical for organizations to remain competitive and responsive to changing market conditions. Outsourcing IT services allows businesses to quickly adapt to fluctuating demands, whether scaling up operations during peak periods or downsizing when necessary. This flexibility is particularly vital in industries that experience seasonal variations or sudden shifts in consumer behavior. Additionally, outsourcing enables organizations to access a wider range of expertise and advanced technologies without the burden of long-term commitments or substantial capital investments. By partnering with external IT service providers, businesses can ensure that they have the right resources in place to meet their specific needs, optimize costs, and drive growth while maintaining the agility required in a dynamic marketplace.
Restraint Factor for the IT Services Outsourcing Market
Cultural and communication barriers can complicate offshore outsourcing relationships
Cultural and communication barriers can significantly complicate offshore outsourcing relationships, often leading to misunderstandings, reduced collaboration, and inefficiencies. When organizations partner with offshore service providers, differences in language, work ethics, and cultural norms can create challenges in conveying expectations, project requirements, and feedback. Misinterpretations may arise from var...
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IT Outsourcing Services Market size was valued at USD 342.60 Billion in 2024 and is projected to reach USD 702.32 Billion by 2031, growing at a CAGR of 8.9% from 2024 to 2031.
Global IT Outsourcing Services Market Drivers
Cost Efficiency: Organizations are increasingly outsourcing IT operations to cut operating costs. This is especially crucial for organizations looking to increase ROI and reduce expenses. According to a Gartner analysis from August 2023, firms who focus on outsourcing to decrease expenses have experienced up to 30% savings in IT budgets.
Access to Skilled Talent: Outsourcing gives businesses access to a worldwide talent pool with specific capabilities that may not be available locally. This is critical for technical positions such as software development and cybersecurity. In September 2023, the Indian government announced plans to invest $1 billion on IT education and training, with the goal of enhancing the abilities of over 500,000 people to meet worldwide demand for IT services.
Focus on Core Business Functions: Outsourcing IT services allows firms to focus on their core business areas, increasing overall productivity and strategic focus. In October 2023, Microsoft announced a stronger cooperation with multiple outsourcing firms to manage its IT infrastructure, letting it to focus on cloud innovation and service development.
This statistic shows the global market size of outsourced services from 2000 to 2019. In 2019, the global outsourcing market amounted to 92.5 billion U.S. dollars.
The global outsourcing market - additional information
The revenue of the global outsourced services industry has been unsteady over the last few years. In 2016, the industry market size dropped to 76.9 billion U.S. dollars, the lowest figure seen in a decade. The largest share of revenue for this industry came from the Americas, followed by Europe, the Middle East and Africa. A much smaller share of global revenue came from the Asia Pacific region.
Outsourcing involves the contracting out of business processes to third parties, usually in order for the business to avoid certain costs, such as taxes. In 2019, business process outsourcing contributed a much smaller proportion of the industry’s global revenue than information technology outsourcing, generating 26 billion and 66.5 billion U.S. dollars respectively.
Other outsourcing segments within the global industry include business services, energy, healthcare and pharmaceuticals, retail, travel and transport, and telecom and media. In 2016, the leading driver for using outsourcing services, according to business executives, was to cut costs. Other drivers included, enabling focus on core business and solving capacity issues.
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IT Infrastructure Outsourcing Market size was valued at USD 376.46 Billion in 2023 and is projected to grow by USD 602.95 Billion by 2031, exhibiting a CAGR of 6.69% during the forecast period 2024-2031.
IT Infrastructure Outsourcing Market: Definition/ Overview
IT infrastructure outsourcing entails hiring third-party vendors to manage and maintain an organization’s IT systems such as servers, networks, data centers, and storage. This service enables firms to decrease operational expenses, increase productivity, and focus on core activities while outsourcing IT infrastructure management. Cloud services, cybersecurity, and technical support can all be outsourced to ensure systems remain current and secure.
The use of IT infrastructure outsourcing is cost savings. Companies that outsource IT services can save money on people, equipment, and technological updates that would otherwise be required to sustain in-house IT teams. This enables organizations to access innovative technology and qualified experts without large operational expenditures. Furthermore, outsourcing allows businesses to focus on their core skills while IT professionals handle infrastructure, increasing efficiency and scalability for long-term growth.
Document Outsourcing Market Size 2025-2029
The document outsourcing market size is forecast to increase by USD 19.5 billion, at a CAGR of 5.7% between 2024 and 2029.
The market is experiencing significant growth due to several key drivers. The need for cost reduction and enhanced efficiency are major factors fueling market expansion. Companies are increasingly turning to document outsourcing to reduce operational costs and improve productivity. Additionally, regulatory compliance is becoming increasingly important, particularly in industries such as healthcare and finance, leading to a growing demand for document outsourcing services. On the other hand, there are also challenges facing the market. Data security remains a major concern, as sensitive information is often entrusted to third-party service providers. There have been instances of data breaches and cyber attacks, which can result in reputational damage and financial losses for businesses. Another trend In the market is the increasing preference for cloud sourcing. This allows businesses to store and access their documents remotely, providing greater flexibility and convenience. However, it also raises concerns around data security and privacy, as cloud storage can be vulnerable to cyber-attacks.
What will be the Size of the Document Outsourcing Market During the Forecast Period?
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The market encompasses businesses outsourcing various document-related operations to external suppliers. These functions include, but are not limited to, operational costs reduction through offshoring, quality writing for emails and business pitches, content creation for technical brochures and product descriptions, maintenance guidance, and document printing and replication. Document processing involves scanning and converting electrical documents into electronic information for improved productivity and efficiency. Service providers offer expertise in handling core functions such as document management systems, business processing, and text-based work like handwritten and electrical document transcription. The market continues to evolve, with a growing emphasis on high-quality document processing, technical capabilities, and adherence to industry standards.
How is this Document Outsourcing Industry segmented and which is the largest segment?
The document outsourcing industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
Service
Onsite contracted
Statement printing
DPO
End-user
Large companies
Small and medium companies
Application
Healthcare
IT
Retail
Media
Others
Geography
North America
Canada
US
Europe
Germany
UK
France
Italy
APAC
China
India
Japan
South America
Middle East and Africa
By Service Insights
The onsite contracted segment is estimated to witness significant growth during the forecast period.
The market involves onsite contracted services where providers establish and offer technology and services for document conversion, assessment, and consulting, as well as in-house printing. Service providers evaluate clients' IT infrastructure and implement document management solutions based on industry vertical, business size, and competitive factors. Onsite document management systems are in demand due to business process automation and data analysis for informed decision-making. Document outsourcing providers expand their service offerings to cater to this need. Companies seek advanced document management systems for compliance-driven industries, large organizations, and those adopting green initiatives. These systems provide scalable and adaptable solutions for digital data, hard copies, document lifecycle management, and document-related tasks.
Cloud computing technology, such as cloud sourcing, data centers, pay-as-you-go services, and cloud-based apps, contribute to the growth of document outsourcing. Machine learning, AI, natural language processing, and optical character recognition improve client turnaround times and document security. Document storage, access, and collaboration are essential aspects of cloud-based solutions, ensuring flexibility, affordability, and data security.
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The onsite contracted segment was valued at USD 26.20 billion in 2019 and showed a gradual increase during the forecast period.
Regional Analysis
Europe is estimated to contribute 37% to the growth of the global market during the forecast period.
Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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Healthcare IT Outsourcing Market is expected to grow at a high CAGR during the forecast period 2024-2031
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North America Healthcare IT Outsourcing Market size was valued at USD 21,847.16 Million in 2023 and is projected to reach USD 38,838.27 Million by 2030, growing at a CAGR of 7.68% from 2024 to 2030.
North America Healthcare IT Outsourcing Market Definition
Healthcare IT outsourcing is the process of hiring an outside company to help an organization with some of its IT and business requirements. This collaboration allows healthcare companies to outsource certain IT jobs, services, or projects to subject-matter experts, freeing them up to focus more on patient care and their core services. The outsourcing agreement can include a wide range of IT services, such as infrastructure management, cybersecurity, network maintenance, software development, and data management. By using the knowledge of external partners, outsourcing healthcare IT operations aims to improve patient care and services within the healthcare sector, reduce costs, improve technological integration, and promote operational performance.
A wide range of technology can be outsourced to third-party vendors by healthcare providers. These consist of setting up telemedicine and remote patient monitoring programs, using specialist medical billing and coding software, managing Electronic Health Record (EHR) systems, maintaining IT infrastructure (servers, networks, etc.), and protecting patient data with cybersecurity and data protection services.
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The size and share of the market is categorized based on Application (Healthcare Provider System, Health Insurance, Biotechnology, Pharmaceutical, Clinical Research Organization (CRO)) and Product (Electronic Health Record (EHR), Payer HCIT Outsourcing, Operational HCIT Outsourcing, Life Sciences HCIT Outsourcing, IT Infrastructure Outsourcing) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).
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The size and share of the market is categorized based on Application (Large Enterprise, Sme) and Product (On Premise, Cloud-based) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).
The statistic shows the revenue generated in the outsourcing industry by service type from 2010 to 2019. In 2019, 26 billion U.S. dollars was generated through business process outsourcing (BPO).
Global outsourcing industry - additional information
Outsourcing is the contracting out of processes to external parties. Business process outsourcing (BPO), which generated 26 billion U.S. dollars worldwide in 2019, involves transferring business processes to service providers outside of an organization. This process often requires offshoring. In 2019, India was the best country for offshoring when its financial attractiveness, the skills and availability of its people and its business environment are considered together. Information technology outsourcing (ITO) is closely related to business process outsourcing as many business processes are technology based. In 2019, global ITO revenue was 66.5 billion U.S. dollars.
The global revenue of business process outsourcing and information technology outsourcing amounted to around 92.5 billion U.S. dollars in 2019, of which more than half was generated in the Americas. Southern Europe was the region with the largest share of businesses practicing, or planning to practice, business process outsourcing. Latin America and South Africa also had high proportions.
Business process outsourcing includes delegating back-office or internal functions, like HR and accounting, and front-office or customer-related functions, such as those that would be passed on to call centers. In 2016, most companies used outsourcing services as a cost cutting tool while communication was a main driver of a successful outsourcing experience among mid-market business leaders worldwide.
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Service Desk Outsourcing Market size was valued at USD 88.55 Billion in 2023 and is projected to reach USD 130.66 Billion by 2030, growing at a CAGR of 5.09% during the forecast period 2024-2030.
Global Service Desk Outsourcing Market Drivers
The market drivers for the Service Desk Outsourcing Market can be influenced by various factors. These may include:
Cost-cutting: Outsourcing service desk tasks is frequently motivated primarily by cost-cutting concerns. By outsourcing, companies can obtain professional staff at a lesser expense than sustaining an internal help desk.
Concentrate on Core Activities: By contracting with outside service providers to handle mundane IT support duties, firms may concentrate on their strategic goals and core skills.
Scalability and Flexibility: Organisations can swiftly modify resources in response to varying demand, seasonal peaks, or corporate expansions thanks to service desk outsourcing’s scalability and flexibility.
Access to Specialised Skills: Hiring a service desk outsourcing company gives you access to knowledge and abilities that you might not have on staff. Teams at service providers frequently consist of individuals with a variety of backgrounds and industries of experience.
24/7 assistance: Outsourcing service desk functions can offer 24/7 coverage, ensuring uninterrupted IT assistance for companies operating in multiple time zones. This is due to globalisation and the growing requirement for round-the-clock help.
Technological Advancements: The evolution of service desk outsourcing is being driven by the rapid advancements in technology, including artificial intelligence (AI), automation, and self-service choices. By utilising these technology, service providers may increase productivity, speed up resolution times, and give a better overall client experience.
Emphasis on Customer Experience: Companies are looking for service desk outsourcing partners that can provide excellent customer care, individualised help, and prompt issue resolution as customer experience grows in importance as a differentiator in the marketplace.
Regulatory Compliance: Organisations outsourcing service desk tasks to providers with experience in data security and regulatory compliance are motivated by compliance requirements in a variety of industries, including healthcare, banking, and IT.
Globalisation: As businesses grow internationally, outsourcing service desk operations enables them to consistently support their international staff, clients, and partners.
Business Continuity and Disaster Recovery: By offering redundant support alternatives and backup resources in case of emergencies or disruptions, outsourcing service desk functions helps improve business continuity and disaster recovery strate
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Software Outsourcing Market size was valued at USD 555.03 Billion in 2024 and is projected to reach USD 897.9 Billion by 2031, growing at a CAGR of 5.49% from 2024 to 2031.
The Software Outsourcing Market is propelled by several key drivers, including the increasing globalization of businesses seeking cost-effective solutions, access to a global talent pool, and the need for specialized expertise in various technology domains. Companies opt for software outsourcing to leverage the benefits of reduced development costs, faster time-to-market, and scalability offered by outsourcing partners.
Additionally, the rising complexity of software development projects, coupled with the growing demand for emerging technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Blockchain, drives the need for outsourcing partners with specialized skills and experience in these areas. Moreover, the trend towards digital transformation across industries further accelerates market growth, as organizations seek outsourcing partners to modernize legacy systems, develop innovative solutions, and enhance their competitive edge in the market. Furthermore, geopolitical factors, such as favorable government policies and regulations promoting outsourcing, also contribute to the expansion of the software outsourcing market.
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It Outsourcing is Witnessing Significant Growth Due To Digital Transformation, Driving Businesses To Rely More On IT Services Outsourcing for A Competitive Edge. IT Support Outsourcing Has Evolved Beyond Cost-Cutting, With Cloud Services Migrations Fueling This Shift. IT Managed Services, Particularly Application Development and Maintenance, are in High Demand, With Companies Like Slack and Alibaba Capitalizing On IT Offshoring. The Market is Highly Competitive and Fragmented, With IT Contracting, It Service Management, It Business Process Outsourcing, and IT Infrastructure Outsourcing Playing Crucial Roles.