The statistic reveals the IT functions most commonly outsourced by IT leaders worldwide, as of 2017. In 2017, software application development was outsourced by 64 percent of respondents.

As per Cognitive Market Research's latest published report, the Global Offshore Software Development Market size will be USD 1,12,609.5 Million by the end of 2030. The global Offshore Software Development Industry's Compound Annual Growth Rate will be 15.2% from 2023 to 2030.

The North America Offshore Software Development market size is projected to reach at USD 25,112.1 Million in 2028.

What is Driving Offshore Software Development Market?

Expanding IT services in every sector 

IT or the information technology sector plays a huge role in the development of any country. This sector supports to produce services maintenance and repairs, training, or consulting. IT sector plays the crucial role in small and medium enterprises (SMEs), large enterprises. Information technology services are those services used by organizations in creating, managing, and delivering information as well as assisting with other business functions. These services include consulting, software development, systems integration, deployment and support, training and education, and hosted and outsourced IT services.

Global IT services market is expected to reach 853-billion-dollar mark by 2021, up from 737 billion U.S. dollars in 2017. North America is the largest regional IT services market, accounting for almost half of the global market.

IT services are used in every sector such as banking, communications, wholesale and retail trade, all professional services such as engineering, computer software development, and medicine, non-profit economic activity, all consumer services, and all government services, including defense and administration of justice. To providing the right investment banking training and courses, the IT sector of a country plays a huge role.

According to one study, there will be over a million software companies in the world within the next 10 years. Most of them are in America and Europe. Competition is extremely high and operational costs are always climbing, and talent is getting scarcer by the day. Offshore software development services are thus, risen as a solution for Western businesses who are looking to get ahead in the crowded and expensive marketplace. This is the significant strategic move as western countries are lacking engineers and jobs has become expensive as their skills are incredibly in demand.

According to recent research conducted by Indeed, the US software job market currently faces a 472K tech talent shortage with 9 out of 10 business owners struggling to find and hire IT professionals. Offshore software development hires a dedicated software development team and opens a new office called an offshore development center in another country. Hence, the main reason companies are looking to build offshore teams and engage developers in countries like India, Singapore, because of low cost and high availability.

Growing knowledge and necessity of cybersecurity is propelling market growth

Restraints for Cryogenic Piping Market

Concerns associated with data security & protection

Opportunities for Offshore Software Development Market

Increasing demand for cutting-edge skills


Growing development in emerging economies

Introduction of Offshore Software Development:

Offshore software development is a process in which companies hire software developers located in a foreign country and their service helps the organization in resolving challenges faced in the business. The offshore software development indicates that company of providers is located in a foreign country are away from their location facing different time zone difference.

There are many benefits of using this offshore software development service which ensures unique customer experience, helps in resolving business difficulties with the best class software. The organizations are adopting the offshore software development outsourcing service due to the low-cost associated with it compared to in-house or onshore service. The company in offshore service provides high quality service offered with an affordable cost. Hence there is higher demand for the offshore software outsourcing in the market. The enterprise or other organization gets advantage in this service as they get skilled and talented team in affordable cost which is beneficial for the company growth and leverages many opportunities in their business. &n...

In 2021, Poland was regarded as a nearshore and offshore haven for software development outsourcing and clinched first place from Ukraine. Notably, Poland is ranked third globally for software development services.

The global Software Development Outsourcing Services market, valued at $46.29 billion in 2025, is poised for significant growth. Driven by the increasing demand for agile software development, digital transformation initiatives across industries, and the cost-effectiveness of outsourcing, the market is expected to exhibit a robust Compound Annual Growth Rate (CAGR). While the precise CAGR is not provided, considering the strong market drivers and the prevalence of outsourcing in the tech industry, a conservative estimate would place the CAGR in the range of 8-12% over the forecast period (2025-2033). Key segments like Healthcare, Aerospace & Defense, and Retail & E-commerce are experiencing rapid growth fueled by their increasing reliance on sophisticated software solutions and data-driven strategies. Technological advancements in areas like AI, cloud computing, and DevOps are further accelerating market expansion. The outsourcing model, encompassing both technology and business process outsourcing, allows companies to focus on their core competencies while leveraging specialized expertise and resources from external providers. Major players like IBM, Accenture, Wipro, and Infosys are driving innovation and competition within this rapidly evolving landscape. Geographical distribution reveals strong market presence across North America and Europe, with significant growth potential in the Asia-Pacific region driven by India and China's expanding tech infrastructure and skilled workforce. However, challenges remain, including data security concerns, intellectual property risks, and managing potential communication barriers across geographical boundaries. Nevertheless, the long-term outlook for the Software Development Outsourcing Services market remains exceptionally positive, underpinned by sustained technological innovation and the continuous need for cost-effective and efficient software solutions across various sectors. Strategic partnerships, mergers and acquisitions, and continuous investments in emerging technologies will be critical for companies to maintain competitiveness in this dynamic market.

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.

In 2022, there were approximately 500 thousand software developers involved in offshore development in Brazil. Mexico had around 225 thousand software developers, while Argentina totaled over 100 thousand.

The Engineering Services Outsourcing Market estimated size and share is projected to exceed USD 49.05 billion by 2034, with a forecasted CAGR of 26.9% during the period.

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.

The Software Development Outsourcing Services market has witnessed significant evolution over the past decade, emerging as a crucial strategy for businesses looking to optimize operational efficiency and reduce costs. This market enables companies to leverage external expertise for their software needs, allowing the

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.

The software market was around 8.4 billion U.S. dollars in India in 2023. Within the segments, the enterprise software generated the highest revenue at 3.5 billion U.S. dollars in 2023. This was followed by application development software, and productivity software. It was estimated that by the year 2028, the software market in India would grow to 14.4 billion dollars. IT industry in India India’s IT industry is one of the leading sectors contributing towards India’s post-liberalization economic growth. The sector is a significant employer to about three million people and also a major contributor to the Indian economy, with around 1.2 percent in financial year 1998, to about 7.5 percent in financial year 2023. At present, the IT and IT enabled services industry has three major sectors: software services, and customized software development; Business Process Outsourcing (BPO); and research and development (R&D) as well as engineering services. Applications sector The leading software segments in terms of revenue are engineering applications, collaborative applications, customer relationship management applications, enterprise resource management applications, and content workflow and management applications. Although the coronavirus pandemic had a negative impact on Indian economy including the software market, it also served as a driver for many enterprises in reevaluating their IT strategies to make steps toward digital business models.

Aerospace Engineering Services Outsourcing Market size was $USD 78.14 billion in 2022 and is grow to $312.55 billion by 2030 with a CAGR of 18.92%.

Philippines ITBPO: Compensation: Software Development data was reported at 1.524 USD bn in 2013. This records an increase from the previous number of 1.129 USD bn for 2012. Philippines ITBPO: Compensation: Software Development data is updated yearly, averaging 588.500 USD mn from Dec 2004 (Median) to 2013, with 10 observations. The data reached an all-time high of 1.524 USD bn in 2013 and a record low of 83.000 USD mn in 2004. Philippines ITBPO: Compensation: Software Development data remains active status in CEIC and is reported by Bangko Sentral ng Pilipinas. The data is categorized under Global Database’s Philippines – Table PH.S009: Information Technology Business Process Outsourcing Survey: Employment & Compensation.

The IT Services Outsourcing market has dramatically transformed the way businesses operate, offering a strategic solution for companies seeking to enhance operational efficiency and focus on core competencies. By delegating IT functions?ranging from software development and network management to technical support an

Philippines ITBPO: Foreign Equity: Japan: Software Development data was reported at 205.000 USD mn in 2013. This records an increase from the previous number of 163.000 USD mn for 2012. Philippines ITBPO: Foreign Equity: Japan: Software Development data is updated yearly, averaging 106.000 USD mn from Dec 2005 (Median) to 2013, with 9 observations. The data reached an all-time high of 320.000 USD mn in 2008 and a record low of 4.000 USD mn in 2005. Philippines ITBPO: Foreign Equity: Japan: Software Development data remains active status in CEIC and is reported by Bangko Sentral ng Pilipinas. The data is categorized under Global Database’s Philippines – Table PH.S008: Information Technology Business Process Outsourcing Survey: Total Equity & Foreign Investments.

Snapshot img

Preclinical Software For Physiology DA and AS Market Size 2025-2029

The preclinical software for physiology DA and AS market size is forecast to increase by USD 4.38 billion at a CAGR of 6% between 2024 and 2029.

Preclinical software for physiology in the global market is witnessing significant growth due to several key trends. The emerging role of bioinformatics tools and software in preclinical research is a major growth factor. Bioinformatics tools are increasingly being used to analyze large datasets generated during preclinical studies, enabling researchers to gain deeper insights into the biological mechanisms underlying various diseases. Another trend driving market growth is the rising digitalization in preclinical research. The adoption of digital technologies, such as electronic data capture systems and cloud-based platforms is streamlining research processes and improving data accuracy and accessibility. The software facilitates data visualization, scientific collaboration, and data analysis, enabling researchers to make informed decisions in areas such as neurology, gene therapy, pharmacokinetic studies, and biosimilar development. Furthermore, the stringent ethical framework using animals in preclinical research is pushing the need for advanced software solutions to ensure compliance with regulations and improve animal welfare. These trends are expected to continue shaping the preclinical software for physiology market In the coming years.

What will be the Size of the Preclinical Software For Physiology DA And AS Market During the Forecast Period?

Request Free Sample

In the dynamic and innovative realm of biomedical research, preclinical software for physiology DA and AS plays a pivotal role in drug discovery and scientific advancement. This market caters to various sectors, including pharmaceutical research, academic labs, government labs, and biotechnology, to streamline laboratory automation, ensure regulatory compliance, and enhance data security. It also supports data integrity, pharmacovigilance, research infrastructure, and clinical trial design. Furthermore, it caters to specialized fields like cardiology research, drug repurposing, biomarker development, precision medicine, and pharmacodynamic studies.
Moreover, with a strong emphasis on data security and regulatory compliance, this software is indispensable for pharmaceutical R&D outsourcing and pharmaceutical consulting. In summary, preclinical software for physiology DA and AS is a vital tool In the life sciences analytics sector, driving scientific progress and ensuring the integrity and security of research data.

How is this Preclinical Software For Physiology DA And AS Industry segmented and which is the largest segment?

The preclinical software for physiology da and as 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.

End-user

  Industrial labs and CROs
  Academic government and research labs


Deployment

  On-premises
  Cloud


Geography

  North America

    Canada
    US


  Europe

    Germany
    UK
    France
    Italy


  Asia

    China
    India
    Japan


  Rest of World (ROW)

By End-user Insights

The industrial labs and CROs segment is estimated to witness significant growth during the forecast period.

Preclinical software plays a crucial role In the research and development of new drugs and therapies in pharmaceutical and biotechnology industries. Many companies outsource their preclinical research to Contract Research Organizations (CROs), which offer advanced technologies and facilities, including preclinical software. CROs execute various research activities, from fundamental research to late-stage development, encompassing tasks like genetic engineering, animal testing, assay development, target validation, and clinical trials. Pharmaceutical and biotech firms specializing in chronic conditions and disorders may prefer small-scale CROs or conduct preclinical research in-house. Preclinical software solutions facilitate physiology data assessment, compound management, cardiology, chemistry, toxicology testing, and adhere to drug approval standards.

Get a glance at the Preclinical Software For Physiology DA And AS Industry report of share of various segments Request Free Sample

The industrial labs and CROs segment was valued at USD 6.71 billion in 2019 and showed a gradual increase during the forecast period.

Regional Analysis

North America is estimated to contribute 44% 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.

For more insights on the market share of various regio

The size of the Middle East and Africa IT Services market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 5.00% during the forecast period.IT services are a vast group of technology-based services provided to organizations to improve their operation, increase efficiency, and meet strategic goals. Some examples include software development, IT consulting, cloud computing, cybersecurity, network management, and data analytics.This IT services market in the Middle East and Africa is growing because of various factors, which include increasing digital transformation initiatives, government investments in infrastructure, and rising adoption of advanced technologies such as artificial intelligence and Internet of Things. The diversity of economies in the region, including oil-rich nations and emerging markets, gives IT service providers a wide range of industries to reach, from oil and gas to healthcare and finance.With the rising competition in the global market, businesses in the MEA region are now increasingly depending on IT services to make their operations more efficient, improve customer experience, and acquire a competitive advantage. As a result, the MEA IT services market is expanding, attracting local and international IT service providers to set up their presence in the region. Recent developments include: July 2022: VMware multi-cloud solutions were deployed by Saudi Arabia's Ministry of Health (MoH) to digitally transform the country's public healthcare sector., October 2022: Google, in its plan to build its cloud services across Africa, invested USD 1 billion., November 2022: AWS Storage Gateway expanded its availability to the Middle East (UAE) Region allowing users to create and manage hybrid cloud storage for on-premises workloads., November 2022: G42 Cloud signed an agreement with SAP, supporting companies to accelerate their digital transformation using cloud technology.. Key drivers for this market are: Acceleration of Digital Transformation Across Industries and Adoption of New Technologies, Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations. Potential restraints include: Data Security, Customization, and Data Migration. Notable trends are: Growing Demand for Adoption of Advanced Technologies (Cloud Computing, Artificial Intelligence, and Internet of things (IoT)).

Snapshot img

Information and Communications Technology Services in Education Market Size 2024-2028

The information and communications technology services in education market size is forecast to increase by USD 89.72 billion at a CAGR of 9.42% between 2023 and 2028.

The burgeoning emphasis on cloud computing, coupled with rising investments in developing information and communications technology (ICT) infrastructure, is driving a rise in demand for ICT outsourcing services. As businesses increasingly migrate to cloud-based solutions to enhance flexibility and scalability, there is a parallel need to bolster ICT infrastructure to support these advancements. This entails substantial investments in upgrading networks, data centers, and related technologies to accommodate the evolving demands of cloud computing. Concurrently, the growing reliance on ICT outsourcing services stems from organizations seeking specialized expertise and cost efficiencies in managing their IT functions. 
Edtech innovations, such as gamification, augmented reality, and virtual reality, engage students and enhance learning outcomes. By outsourcing tasks such as software development, maintenance, and support, businesses can leverage external resources to streamline operations and drive innovation. This trend underscores the critical role of ICT outsourcing in enabling organizations to stay competitive in a rapidly evolving digital landscape. Consequently, the confluence of these factors is reshaping the ICT industry, with opportunities for service providers to capitalize on the growing demand for cloud-centric solutions and outsourcing services.

What will be the Size of the Information and Communications Technology Services in Education Market during the forecast period?

Request Free Sample

The Information and Communications Technology (ICT) services market in education is experiencing growth, driven by the increasing adoption of cloud computing, e-learning, online assessment, and digital classroom solutions. These technologies enable flexible, accessible, and personalized learning experiences, transforming traditional educational models. E-learning and distance learning are key trends, with mobile learning and interactive whiteboards extending educational reach beyond the classroom. Artificial intelligence, big data analytics, and personalized learning offer tailored educational experiences, while cybersecurity and data privacy ensure student protection.
Educational apps, webinars, collaborative tools, and video conferencing facilitate remote collaboration and communication. The Internet of Things and smart schools are emerging trends, integrating technology into infrastructure for optimized learning environments. Digital literacy is a critical skill for students, driving demand for ICT services in education.

How is this Information and Communications Technology Services in Education Industry segmented?

The information and communications technology services in education industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

End-user

  Pre K-12
  Higher education


Component

  Hardware
  Software
  Services


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China


  Middle East and Africa



  South America

By End-user Insights

The pre K-12 segment is estimated to witness significant growth during the forecast period.

The Pre K-12 education sector's adoption of information and communication technology services is experiencing consistent growth. Schools integrate various tools to facilitate communication, content creation, distribution, storage, and management. Advanced technologies like adaptive learning and learning analytics, along with support solutions such as learning management systems (LMS) and content management systems (CMS), have encouraged schools to adopt cloud computing. The shift towards cloud computing, including Software as a Service (SaaS), is a significant market driver. Other technologies, including educational apps, online assessment, video conferencing, webinars, collaborative tools, digital curriculum, blended learning, and remote proctoring, are also transforming education.

Additionally, emerging technologies like artificial intelligence, big data analytics, personalized learning, augmented reality, virtual reality, and robotics in education are gaining traction. ICT infrastructure, network security, digital literacy, cybersecurity, data privacy, and digital citizenship are essential considerations in this digital transformation.

Get a glance at the market report of share of various segments Request Free Sample

The pre K-12 segment was valued at USD 64.13 billion in 2018 and showed a gradual inc

Managed Business Solutions Market Outlook

The global managed business solutions market size is projected to witness substantial growth, expanding from USD 300 billion in 2023 to an estimated USD 600 billion by 2032, with a robust compound annual growth rate (CAGR) of 8%. This impressive growth is primarily driven by the increasing reliance of businesses on outsourced IT and business process services to enhance operational efficiency and reduce costs.

A significant growth factor for the managed business solutions market is the rising complexity of IT infrastructure and the growing need for advanced technology integration. Organizations today are continuously evolving, implementing new technologies, and undergoing digital transformation. The outsourcing of IT services and business processes enables companies to leverage specialized expertise, mitigate risks, and focus on core business activities. Additionally, the rapid advancements in cloud computing and the proliferation of connected devices have necessitated efficient and managed solutions to handle large volumes of data and ensure seamless operations.

Another crucial factor propelling market growth is the increasing incidence of cyber threats and the growing emphasis on data security. As organizations digitize their operations, the risk of cyber-attacks and data breaches has escalated significantly. Managed security services have become essential for protecting sensitive information, maintaining regulatory compliance, and ensuring business continuity. The demand for comprehensive security solutions, including threat detection, vulnerability management, and incident response, continues to rise, bolstering the managed business solutions market.

The market is further driven by the cost advantages associated with managed services. Companies are recognizing the economic benefits of outsourcing non-core functions, which enables them to convert fixed IT costs into variable costs, thus optimizing their spending. Managed services provide access to the latest technologies without the need for significant capital investment. Moreover, they offer scalable solutions that can adapt to the changing needs of businesses, providing greater flexibility and resource efficiency.

Regionally, North America dominates the managed business solutions market, attributed to the presence of a large number of IT service providers, a high adoption rate of advanced technologies, and a well-established IT infrastructure. The Asia Pacific region is anticipated to exhibit the highest growth rate, driven by the rapid digital transformation across industries, increasing IT spending, and the growing number of small and medium enterprises (SMEs) adopting managed services. Europe also holds a significant market share owing to its strong focus on data security and regulatory compliance.

IT Services Analysis

The IT services segment within the managed business solutions market is one of the largest and most dynamic segments, driven by the ongoing digital transformation across various industries. IT services encompass a wide range of offerings, including network management, infrastructure management, software development, system integration, and IT consulting. These services are critical for businesses to maintain operational efficiency, ensure system reliability, and stay competitive in the digital age. The increasing complexity of IT environments and the need for specialized expertise have fueled the demand for managed IT services.

One of the key drivers for the IT services segment is the growing trend of cloud adoption. As organizations migrate their applications and data to the cloud, they require managed services to ensure seamless integration, optimize performance, and enhance security. Cloud-based managed IT services offer scalability, flexibility, and cost-efficiency, making them an attractive option for businesses of all sizes. The shift towards hybrid cloud environments has further increased the demand for managed IT services, as companies seek to manage and optimize their multi-cloud strategies.

Cybersecurity concerns are another significant factor driving the IT services segment. With the increasing frequency and sophistication of cyber-attacks, businesses are investing heavily in managed security services to protect their critical assets. Managed IT services providers offer comprehensive security solutions, including threat monitoring, vulnerability management, and incident response, to safeguard against cyber threats. The growing emphasis on regulatory compliance and data protection regulations has al