This statistic shows the global market size of outsourced services from 2000 to 2019. In 2019, the global outsourcing market amounted to **** 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 **** 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 ** billion and **** 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.

IT Outsourcing (ITO) Market is Segmented by Service Type (Infrastructure Outsourcing, Application Development and Maintenance, and More), Organization Size (SMEs and Large Enterprises), Sourcing Location (On-Shore, Near-Shore, and More), End-User Industry (BFSI, Healthcare and Life-Sciences, and More), and by Geography. The Market Forecasts are Provided in Terms of Value (USD).

The global IT outsourcing market size was valued at USD 600.93 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 835.45 Billion by 2033, exhibiting a CAGR of 3.64% during 2025-2033. North America dominates the market with 33.8% of the share in 2024. 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.

IMARC Group provides an analysis of the key trends in each segment of the global IT outsourcing market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on service model, organization size, and end user.

The Contact Center Outsourcing Market Report is Segmented by Service Type (Voice (On-Shore), Voice (Off-Shore), and More), End-User Industry (BFSI, Retail and E-Commerce, and More), Delivery Model (Onshore Outsourcing, Nearshore Outsourcing, and More), Deployment Model (Cloud-Based Contact Centers, Hybrid Contact Centers, and More) Interaction Flow (Inbound Services, Outbound Services, and More), and Geography.

Global Business Process Outsourcing Market size was valued at USD 239.3 billion in 2021 and is poised to grow from USD 261.9 billion in 2022 to USD 525.2 billion by 2030, growing at a CAGR of 9.4% in the forecast period (2023-2030).

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Business Process Outsourcing Market Size 2025-2029

The business process outsourcing market size is forecast to increase by USD 88.8 billion at a CAGR of 6.8% between 2024 and 2029.

The market is experiencing significant growth due to various key trends and drivers. One of the primary drivers is the focus on reducing operational costs, as companies seek to minimize expenses and improve efficiency. Another trend is the rising emphasis on process automation, which is becoming increasingly important in the digital age. However, data breaches continue to pose a challenge to the industry, as companies must ensure the security of sensitive information when outsourcing processes. BPO services offer numerous advantages, such as access to technological advancements like cloud computing, Artificial Intelligence, and the Internet of Things (IoT), which can improve efficiency and productivity. These factors, among others, are shaping the future of the BPO market. The market analysis report provides an in-depth examination of these trends and their impact on market growth. Companies are leveraging technology and innovative strategies to address these challenges and stay competitive in the market. The BPO industry is expected to continue its growth trajectory, driven by these key factors and the increasing demand for outsourcing services.

What will be the Size of the Market During the Forecast Period?

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Business Process Outsourcing (BPO), an external service that allows companies to transfer non-core business functions to specialized third-party providers, continues to gain traction in today's business landscape. This trend is driven by the desire for flexibility, reduced costs, and enhanced service delivery in various industries, including healthcare and IT. BPO offers businesses the opportunity to focus on their core competencies while outsourcing operational tasks to external experts. This not only leads to cost savings but also results in improved efficiency and agility. Operating costs associated with hiring and training staff, maintaining infrastructure, and managing technology are significantly reduced. Moreover, advancements in technological improvements such as cloud computing, IoT, AI technologies, and investment in these areas provide a competitive advantage for BPO service providers.
Moreover, these technological advancements enable seamless integration of business processes and real-time data access, leading to better decision-making and improved customer experiences. The BPO market is diverse, with various outsourcing types such as offshore, nearshore, and onshore. Each type caters to specific business needs, offering varying levels of cost savings and service delivery. Offshore outsourcing, for instance, offers significant cost savings due to lower labor costs in certain regions. Nearshore outsourcing provides a balance between cost savings and proximity to the client, while onshore outsourcing ensures cultural and language compatibility. The adoption of BPO is on the rise due to increased awareness of its benefits and the need for businesses to remain competitive in today's dynamic marketplace. By outsourcing non-core business functions, companies can focus on their core competencies and strategic initiatives, ultimately leading to growth and success.

How is this market segmented and which is the largest segment?

The market 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.

End-user

  IT and telecommunication
  BFSI
  Retail
  Healthcare
  Others


Business Segment

  Large enterprises
  SMEs


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France


  APAC

    China
    India
    Japan


  Middle East and Africa



  South America

    Brazil

By End-user Insights

The IT and telecommunication segment is estimated to witness significant growth during the forecast period.

The market is witnessing significant growth, particularly in segments such as telecom services and digital content creation. Technological advancements and increasing consumer demand for digital communication are driving this expansion. The telecom industry is experiencing steady growth with the emergence of 5G technology. Companies like Bharti Airtel and Tech Mahindra are collaborating to develop and market enterprise-grade digital solutions in this space. The automobile, aviation, ports, utilities, chemicals, oil and gas industries, among others, are expected to benefit from these offerings. Key services within the BPO market include voice processing, telemarketing, image editing, virtual staffing, 3D visualization, and customer care. These services enable businesses to outsource talent sourcing and various busi

The Business Process Outsourcing Market is Segmented by Application (Human Resource, Procurement, Information Technology, Sales and Marketing, Finance and Accounting, Customer Service, and Other Application), End User (BFSI, Manufacturing, Heathcare, and More), Organization Size (Large Enterprises, Small and Medium Enterprises), and Geography (North America, Europe, Asia Pacific, and More).

In 2023, the market size of the Chinese service outsourcing industry amounted to approximately *** billion U.S. dollars, representing an annual growth of ** percent. From 2016 to 2023, the industry grew substantially.

Global IT Outsourcing market size is expected to reach $150.48 billion by 2029 at 7.2%, cloud-powered surge is driving the next wave of growth in the it outsourcing market

The United States (US) Business Process Outsourcing Market size is expected to reach $105.6 Billion by 2030, rising at a market growth of 7.5% CAGR during the forecast period. The business process outsourcing market in the United States has grown significantly over the past few decades, becoming a

By 2021, the North American procurement outsourcing market is forecasted to generate over 3.2 billion U.S. dollars. By the same period, the global procurement outsourcing market is expected to reach roughly 7.4 billion U.S. dollars in size.

According to Cognitive Market Research, the global IT outsourcing service market size will be USD 645854.5 million in 2024. It will scale at a compound annual growth rate (CAGR) of 8.5% between 2024 and 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 258341.8 million in 2024 and will proceed 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 193756.4 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 148546.5 million in 2024 and will thrive 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 32292.7 million in 2024 and will evolve at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.
Middle East & Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 12917.1 million in 2024 and will progress at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031.
The mobility solutions category is the fastest-growing service type segment of the IT outsourcing service industry.

Market Dynamics of IT Outsourcing Service Market

Key Drivers for IT Outsourcing Service Market

Increased Adoption of IT Outsourcing to Minimize Operational Costs to Drive Market Growth

One of the primary reasons businesses opt for IT outsourcing is the significant cost savings it offers. Outsourcing allows companies to reduce expenses related to in-house IT infrastructure, software, hardware, and personnel. Businesses can avoid costly capital expenditures by outsourcing these tasks to third-party service providers, lowering continuing operating costs such as salaries, training, and maintenance. Outsourcing firms, often located in regions with lower labor costs, provide skilled IT services at a fraction of the cost of maintaining an internal team. Additionally, outsourcing enables organizations to pay only for the services they use, allowing for more flexibility in budgeting. Outsourcing also enhances efficiency as specialized IT vendors can offer optimized processes, advanced technology, and faster response times, which further boosts productivity and service quality.

Growing Focus on Core Business Functions to Facilitate Market Development

IT outsourcing allows organizations to concentrate on their core competencies by relieving them of non-core IT responsibilities. This enables businesses to allocate resources and attention to strategic activities that are essential for growth and competitive advantage. Organizations can align their internal resources more closely with their business goals by outsourcing core IT functions. This means they can invest more time and energy into activities that directly contribute to their mission, such as product development, marketing, and customer engagement. The ability to quickly adapt to changing market conditions is crucial for business success. IT outsourcing allows companies to scale their IT operations up or down based on current needs, providing the flexibility to respond swiftly to new opportunities or challenges. This can lead to better service quality and innovation, as external providers often have a wealth of experience in specific technologies and best practices.

Restraint Factor for the IT Outsourcing Service Market

Heavy Dependence on Third-Party Providers to Limit Market Expansion

One of the key restraints for the IT outsourcing services market is the heavy reliance on third-party providers. While outsourcing can provide numerous benefits, it also creates a significant dependency on external vendors for critical IT functions, which can lead to various challenges. Dependence on third-party providers can expose organizations to operational risks. If a vendor experiences downtime, financial instability, or other disruptions, it can directly impact the operations of the client. This can lead to delays in service delivery, reduced productivity, and potential revenue loss. Organizations may find themselves with limited control over their IT systems and processes.

Impact of Covid-19 on the IT Outsourcing Service Market

The COVID-19 pandemic positively impacted the IT outsourcing service market, accelerating digital transformation across various ...

Finance and Accounting Outsourcing Market Report is Segmented by Service Type (Order-To-Cash (O2C), Procure-To-Pay (P2P), and More), Enterprise Size (Small and Medium Enterprises (SMEs), and Large Enterprises), Industry Vertical(Banking, Financial Services and Insurance (BFSI), Manufacturing, and More), Deployment Model (On-Shore, and More), Contract Model (Multi-Process FAO, and Single-Process FAO), and Geography.

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.

Contact and Call Centre Outsourcing Market size was valued at USD 77.78 Billion in 2023 and is projected to reach USD 123.91 Billion by 2030, growing at a CAGR of 4.53% from 2024 to 2030.

Global Contact And Call Centre Outsourcing Market Drivers

The market drivers for the Contact And Call Centre Outsourcing Market can be influenced by various factors. These may include:

Economy of Cost: Companies can often save a significant amount of money on operating expenses by outsourcing contact and call centre services. Using outsourced services instead of internal call centres can save money, especially in nations with less labour expenses. Emphasis on Fundamental Skills: Businesses can concentrate on their main business operations by outsourcing non-core tasks like customer service. This enables them to focus on strategic goals and deploy resources more effectively. Obtaining Skilled Labour: By outsourcing to specialised contact centres, one can gain access to a pool of knowledgeable individuals with experience in sales, support, and customer service. Better customer satisfaction and higher-quality services may arise from this. Technological Progress: Artificial intelligence (AI), chatbots, automation, and other cutting-edge technology are being incorporated into call centre operations to improve customer experiences and increase efficiency. To remain competitive, outsourcing firms frequently make investments in these technologies. Globalisation and Round-the-Clock Operations: Through outsourcing, businesses may offer clients round-the-clock assistance across time zones, improving client happiness and service. This is essential in today's globalised corporate world where clients need constant accessibility. Flexibility and Scalability: Businesses can scale up or reduce their operations in response to changing business needs thanks to outsourcing. This flexibility is especially useful for sectors where call volumes fluctuate. Observance and Regulatory Knowledge: A thorough awareness of numerous legal requirements and compliance standards is frequently possessed by outsourcing companies. This knowledge aids businesses in navigating intricate regulatory frameworks and guarantees compliance with sector rules. Put the customer experience first: In an effort to enhance the general customer experience, many businesses outsource call centre operations. Inquiries, complaints, and other customer contacts are handled expertly by experienced individuals who work for outsourcing businesses that specialise in customer interactions. Using Specialised Providers for Outsourcing: Businesses are choosing more and more to outsource to specialised call centre providers with industry-specific subject knowledge. This makes it possible to provide client service that is more specialised and industry-specific. Initiatives for Digital Transformation: The market for contact and call centre outsourcing is being impacted by the continuous digital transformation of corporate processes. Businesses are looking for suppliers who can work with their digital strategy and incorporate cutting-edge technologies into their relationships with customers.

Contact Center Outsourcing market reached US$ 118.87 billion in 2024 and is expected to reach US$ 231.01 billion by 2032

The global business process outsourcing market size was valued at around USD 304.06 billion in 2024 and is projected to grow at a CAGR of more than 9.7%, reaching USD 1.01 trillion revenue by 2037. IT & Telecommunications segment is set to account for 30% share by 2037, due to rising demand for connectivity, with more individuals utilizing the Internet globally.

Regulatory Affairs Outsourcing Market is growing with a CAGR of 10.9% in the prediction period and it crosses USD 19.26 Bn by 2032 from USD 9.33 Bn 2025

The global engineering services outsourcing market size was valued at USD 1,668.94 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 6,335.04 Billion by 2033, exhibiting a CAGR of 15.18% from 2025-2033. Asia Pacific currently dominates the market, holding a market share of 42.1% in 2024. The engineering services outsourcing market share in the Asia Pacific region is increasing because of its large pool of skilled engineers, competitive labor costs, and strong infrastructure in countries like India and China. The region also benefits from the growing industrialization, government support for digital innovation, and an expanding base of international clients seeking cost-effective and high-quality engineering solutions.

The drug discovery outsourcing market is expected to expand its roots at a steady CAGR of 7.2% during the forecast period. The market is likely to hold a revenue of US$ 3.75 billion in 2023, while it is anticipated to cross a value of US$ 7.52 billion by 2033.

Category-wise Landscape