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US IT Outsourcing Market Report Segments the Industry Into by Service Type (Application Outsourcing, Infrastructure Outsourcing, Other Services), Organization Size (SMEs, Large Enterprises), Industry (BFSI, IT and Telecom, Manufacturing and More), Contract Type (Fixed-Price, Time-And-Materials, Outcome-Based). The Market Forecasts are Provided in Terms of Value (USD).
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The United States IT Outsourcing market size valued at USD XX million in 2025 is projected to grow at a CAGR of 2.87% from 2025 to 2033.The market is driven by factors such as the rising demand for cost-effective and efficient IT solutions, the need for specialized expertise and resources, and the adoption of cloud-based services. However, the market is also restrained by concerns over data security and privacy, the lack of control over outsourced operations, and cultural differences between outsourcing providers and clients. The market is segmented by service type, organization size, and industry. The service type segment includes application outsourcing, infrastructure outsourcing, and other services. The organization size segment includes SMEs and large enterprises. The industry segment includes banking, financial services, and insurance (BFSI), IT and telecom, manufacturing, healthcare, government and public sector, retail and e-commerce, and energy, utilities, and mining. The competitive landscape includes major players such as NTT Corporation, Infinitely Virtual, IBM Corporation, Hewlett Packard Enterprise Company, Microsoft Corporation, DXC Technology Company, and CDW Corporation. Recent developments include: July 2023 - Leidos, an American science and technology player, announced that it entered into a strategic collaboration agreement with Microsoft to leverage the company's unique strengths in the market to accelerate artificial intelligence (AI) transformation for new and existing customers in the public sector, showing the growth of company's AI-based IT outsourcing services in the country., June 2023 - Nokia and DXC Technology announced their partnerships to expand the availability of DXC Signal Private LTE and 5G, a managed secure private wireless network and digitalization platform solution that helps industrial enterprises digitally transform their operations. After this collaboration, DXC could extend its IT infrastructure outsourcing services to support users' business automation, enhanced flexibility, operational technology (OT) data processing, and privacy needs, which would fuel market growth during the forecast period in the United States.. Key drivers for this market are: Growing Emphasis on Leveraging the Core Competencies by Outsourcing Non-core Operations, Organizations are Increasingly Focusing on IT as a Means to Gain Differentiation by Relying on Outsourced Vendors; Ongoing Migration toward the Cloud and Adoption of Virtualized Infrastructure. Potential restraints include: Initial High Cost of Adoption, Lack of Skilled Professionals in the Oil and Gas Industry. Notable trends are: Ongoing Migration Toward Cloud and the Adoption of Virtualized Infrastructure to Drive the Market.
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The United States IT outsourcing market was valued at USD 172.21 Billion in 2024. The industry is expected to grow at a CAGR of 3.60% during the forecast period of 2025-2034 to attain a valuation of USD 245.28 Billion by 2034.
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United States IT Outsourcing Market size was valued at USD 143.7 Billion in 2024 and is expected to reach USD 212.5 Billion by 2032, growing at a CAGR of 5.8% from 2026 to 2032.United States IT Outsourcing Market: Definition/ OverviewIT outsourcing is the practice of delegating IT services to third-party vendors to handle specific tasks like software development, cloud computing, infrastructure management, cybersecurity and help desk support. Outsourcing these services allows businesses to streamline operations, cut costs and focus on their core business activities. Businesses predominantly use IT outsourcing to reduce operational costs. Outsourcing IT functions allows organizations to access talent pools at a fraction of the cost of hiring full-time, in-house staff with similar skills. It provides flexibility, allowing businesses to scale their IT resources up or down according to demand. IT outsourcing continues to evolve as technology advances, including artificial intelligence (AI), machine learning and automation. These technologies make the outsourcing process faster, more efficient and error-free. The growing use of cloud services makes outsourcing more appealing, as businesses seek scalable, on-demand IT infrastructure.
The revenue in the 'IT Outsourcing' segment of the it services market in the United States was modeled to stand at ************** U.S. dollars in 2024. Between 2016 and 2024, the revenue rose by ************* U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by ************* U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on IT Outsourcing.
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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).
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Market would be USD 60.6 Billion by 2025 and another USD 117.1 Billion by 2035 with a compound annual growth rate (CAGR) of 6.8% during the forecast period, because of adoption in cloud-based solutions, electronic health records (EHRs), healthcare analytics platforms, telemedicine infrastructure, and cybersecurity solutions.
Metric | Value |
---|---|
Market Size (2025E) | USD 60.6 Billion |
Market Value (2035F) | USD 117.1 Billion |
CAGR (2025 to 2035) | 6.8% |
Country-wise outlook
Country | CAGR (2025 to 2035) |
---|---|
USA | 7.2% |
Country | CAGR (2025 to 2035) |
---|---|
UK | 6.5% |
Country | CAGR (2025 to 2035) |
---|---|
European Union (EU) | 6.9% |
Country | CAGR (2025 to 2035) |
---|---|
Japan | 6.7% |
Country | CAGR (2025 to 2035) |
---|---|
South Korea | 6.8% |
Competitive Outlook
Company Name | Estimated Market Share (%) |
---|---|
Accenture | 18-22% |
IBM Corporation | 15-19% |
Cognizant Technology Solutions | 10-14% |
TCS (Tata Consultancy Services) | 8-12% |
Infosys Limited | 6-10% |
Other Companies (combined) | 30-35% |
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.
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United States medical billing outsourcing market size reached USD 2,739.6 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 7,297.8 Million by 2033, exhibiting a growth rate (CAGR) of 11.5% during 2025-2033. The rapid evolution of technology in the healthcare industry, which has led to the development of advanced billing and coding software, is driving the market.
Report Attribute
|
Key Statistics
|
---|---|
Base Year
| 2024 |
Forecast Years
|
2025-2033
|
Historical Years
|
2019-2024
|
Market Size in 2024 | USD 2,739.6 Million |
Market Forecast in 2033 | USD 7,297.8 Million |
Market Growth Rate (2025-2033) | 11.5% |
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on type, service, and end use.
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US Engineering Services Outsourcing Market Size 2024-2028
The US engineering services outsourcing market size is estimated to grow by USD 187.62 billion at a CAGR of 32.14% between 2023 and 2028. The market experiences significant growth due to various factors. Primarily, businesses seek cost savings through access to lower labor wages in offshore locations. Additionally, outsourcing and engineering R&D services enable companies to tap into a vast pool of highly skilled engineering professionals, addressing potential in-house expertise gaps. This strategic approach not only reduces operational costs but also enhances project efficiency and productivity. By leveraging engineering services outsourcing and automotive engineering services outsourcing, organizations can effectively manage their resources and focus on their core competencies, ultimately contributing to their overall growth and success.
What will be the Size of the US Engineering Services Outsourcing Market During the Forecast Period?
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US Engineering Services Outsourcing Market Segmentation
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Sourcing Outlook
Offshore
Onshore
End-user Outlook
Telecom
Automotive
Healthcare
Aerospace
Semiconductor and others
The market share growth by the offshore segment will be significant during the market forecasting period. The term offshore outsourcing describes the transfer of all or a portion of the engineering processes to a different organization located abroad. This segment's nominal growth can be attributed to the ease of access to skilled and talented human resources in the US as well as the availability of resources that are both cost-effective and readily available.
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The offshore segment was valued at USD 17.18 billion in 2018. However, due to a number of factors including the rate of global inflation, the high cost of training employees, high churn rates, and a growing preference for outsourcing to onshore partners, it is anticipated that the offshore segment in the US will grow more slowly than the onshore segment.
In the US, there is an increasing amount of opposition to offshore outsourcing, which claims that offshoring is to blame for the loss of job opportunities. The US government has already erected a number of onerous trade restrictions against its significant trading partners. During the forecast period, this is predicted to slow down international trade. These limitations would have a negative effect on the expansion of the US outsourcing market for engineering services and architectural engineering and construction solutions. During the forecast period, it is anticipated that value-based or collaborative partnerships between customer organizations and outsourced ESPs may experience significant growth.
US Engineering Services Outsourcing Market Dynamics
Iron ore demand and supply analysis highlights the evolving dynamics of the iron market, influenced by factors like iron ore price volatility and steel industry demand. Top iron ore exporters and producers play a crucial role in maintaining supply chain stability, while the recycling of steel and the adoption of alternative steel production methods are gaining momentum. Sustainable mining practices are increasingly prioritized to promote environmental care. The demand for high-grade iron ore continues to rise, particularly in infrastructure development, as it plays a key role in modern construction. Iron ore pricing forecasts remain essential for strategic planning, and the impact of decarbonization on iron ore demand reflects the industry's shift towards eco-friendly solutions and green steel production. Additionally, iron ore export dynamics are critical to global trade flows, further shaping the market's future.
The US engineering services outsourcing market is experiencing significant growth, driven by the adoption of advanced technologies such as cloud-based engineering software, automation mechanisms, and platform as a service (PaaS). OEMs and end application enterprises are increasingly turning to engineering service providers (ESPs) for expertise in G Technology, including the Internet of Things (IoT) and artificial intelligence (AI) to enhance their product offerings.
ESPs are leveraging AI and machine learning (ML) to streamline designing services, from computer aided design (CAD) and computer aided engineering (CAE) to computer aided manufacturing (CAM), and CNC machines. Cloud-based engineering software enables real-time collaboration and access to the latest design iterations from anywhere. Automation mechanisms and dig
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Operators in this industry provide third-party outsourcing services on a contract basis. Clients can outsource specific operations and business functions, including both back and front office tasks, to companies in this industry.
Significant fluctuations are estimated for all segments over the forecast period for the revenue. In general, the indicator appears to exhibit a positive trend, with more segments showing increasing values rather than decreasing values until 2029. Among them, the segment Web Hosting attains the highest value throughout the entire period, reaching ***** billion U.S. dollars. Find further statistics on other topics such as a comparison of the revenue in the United States and a comparison of the revenue in Canada. The Statista Market Insights cover a broad range of additional markets.
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Outsourcing Statistics: In today's global economy, outsourcing plays a pivotal role in business operations, offering companies cost-effective solutions and access to specialized expertise. Recent statistics shed light on the widespread adoption and impact of outsourcing. According to data from Statista, the global outsourcing market was valued at USD 92.5 billion in 2021, with a projected growth rate of 5.84% from 2022 to 2028. Furthermore, a report by Deloitte revealed that 59% of companies outsource to cut costs, while 57% outsource to focus on core business functions. These figures underscore the significant role outsourcing plays in modern business strategies, driving efficiency and enabling organizations to stay competitive in a rapidly evolving landscape. As we delve deeper into outsourcing statistics, it becomes evident that its influence extends across industries and geographies, shaping the way businesses operate and thrive in today's interconnected world. Editor’s Choice The global spending on outsourcing surged to approximately USD 731 billion in 2023, reflecting its significant economic impact and widespread adoption across industries. An overwhelming 92% of G2000 companies leverage IT outsourcing services, emphasizing the prevalent reliance on outsourcing to meet technological needs. Business process outsourcing contributes significantly to the Philippines' economy, accounting for 9% of its GDP, highlighting the country's pivotal role in the outsourcing landscape. Approximately 37% of small businesses outsource at least one business process, demonstrating the accessibility and benefits of outsourcing for organizations of varying sizes. China's services outsourcing industry witnesses a substantial influx of over one million new employees annually, indicating the sector's robust growth and employment opportunities. The global outsourcing industry was valued at USD 620.381 billion in 2020 and is projected to reach USD 904.948 billion by 2027, showcasing its continuous expansion and market potential. India, known as the "Outsourcing Capital of the World," excels in various outsourcing domains, including IT services, software development, customer support, and back-office operations, leveraging its abundant talent pool and technological expertise. Southeast Asian countries like Malaysia, Vietnam, and Thailand specialize in IT outsourcing, business support functions, and digital marketing, offering competitive solutions to global businesses. The US market dominates the global outsourcing business, generating USD 62 billion of the total international income from the industry, underscoring its significance in the global outsourcing landscape. Information technology remains the most outsourced industry, with 37% of IT operations being outsourced, highlighting the sector's reliance on outsourcing for specialized services and expertise. The outsourcing industry is anticipated to witness a compound annual growth rate of 4% between 2021 and 2025, indicating steady expansion and opportunities for market players. Since the pandemic, 45% of businesses have expressed intentions to increase outsourcing, emphasizing the growing importance of outsourcing in business strategies, particularly in accessing specialized skill sets and enhancing efficiency. Cloud computing has opened up more outsourcing opportunities, with 90% of businesses able to leverage remote professionals, indicating the transformative impact of technology on the outsourcing landscape. You May Also Like To Read Business Intelligence Statistics Networking Statistics Diversity in Tech Statistics Robotics Industry Statistics
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The U.S. business process outsourcing sector, valued at over USD 83.44 billion in 2024, is marked by its diversity and increasing demand for digital transformation and cost-saving
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The United States IT services market is experiencing robust growth, projected to reach $461.03 million in 2025 and maintain a Compound Annual Growth Rate (CAGR) of 6.47% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud computing, the growing need for cybersecurity solutions in response to escalating cyber threats, and the ongoing digital transformation initiatives across various industries are significant contributors. Furthermore, the increasing demand for data analytics and artificial intelligence (AI) solutions to improve operational efficiency and gain competitive advantage is boosting market growth. While data on specific market segments and regional breakdowns are not provided, the presence of numerous major players like Accenture, IBM, Microsoft, and Infosys, indicates a highly competitive and mature market with a broad range of service offerings. This competition ensures innovation and drives efficiency within the IT services sector, benefiting businesses of all sizes across the US. The forecast period of 2025-2033 suggests continued upward trajectory for the US IT services market, driven by ongoing technological advancements and evolving business needs. While potential restraints such as economic downturns and talent shortages could temporarily impact growth, the long-term prospects remain positive. The strong presence of established multinational corporations and a large number of specialized service providers demonstrates the market's depth and resilience. The market is expected to continue attracting investments and innovations in areas like edge computing, blockchain technology, and the Internet of Things (IoT), further accelerating its growth in the coming years. This sustained growth is likely to create numerous opportunities for businesses operating within the IT services ecosystem, ranging from software development and cloud solutions to cybersecurity and consulting services. 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: IT Outsourcing to Hold Major Market Share.
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The United States Medical Device Outsourcing Market was valued at USD 31.06 Billion in 2024 and is expected to reach USD 64.68 Billion by 2030 with a CAGR of 12.98% through forecast period.
Pages | 82 |
Market Size | 2024: USD 31.06 Billion |
Forecast Market Size | 2030: USD 64.68 Billion |
CAGR | 2025-2030: 12.98% |
Fastest Growing Segment | Quality Assurance |
Largest Market | Mid-West |
Key Players | 1. Laboratory Corporation of America Holdings 2. Pace Analytical Services, Inc. 3. Intertek Group plc 4. Charles River Laboratories 5. PAREXEL International Corporation 6. Accell Clinical Research, LLC 7. Criterium, Inc. 8. ICON plc. 9. IQVIA Inc. 10. Integer Holdings Corporation |
The revenue in the 'Administration Outsourcing' segment of the it services market in the United States was modeled to amount to ************* U.S. dollars in 2024. Between 2016 and 2024, the revenue rose by ************ U.S. dollars, though the increase followed an uneven trajectory rather than a consistent upward trend. The revenue will steadily rise by ************ U.S. dollars over the period from 2024 to 2030, reflecting a clear upward trend.Further information about the methodology, more market segments, and metrics can be found on the dedicated Market Insights page on Administration Outsourcing.
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The Healthcare IT Outsourcing Market report segments the industry into By Type (Payers HCIT Outsourcing, Providers HCIT Outsourcing), By End User (Healthcare Provider System, Biopharmaceutical Industry, Clinical Research Organization, Other End Users), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, South America). Get five years of historical data and five-year forecasts.
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U.S. Outsourced Sales Services Market size was valued at USD 1209.11 Million in 2024 and is projected to reach USD 1971.25 Million by 2031, growing at a CAGR of 6.95% during the forecast period 2024-2031.
U.S. Outsourced Sales Services Market Drivers
Cost Efficiency: Outsourcing sales services can be more cost-effective than maintaining an in-house sales team. It reduces the need for recruitment, training, salaries, and benefits, allowing companies to allocate resources to other core business functions.
Access to Expertise: Outsourced sales service providers bring specialized knowledge and expertise. They have experienced sales professionals who are skilled in various sales techniques, industry trends, and customer relationship management, ensuring a higher quality of sales operations.
Scalability: Businesses can easily scale their sales efforts up or down based on market demand without the complexities involved in hiring or laying off staff. This flexibility helps companies manage seasonal fluctuations and market expansions more effectively.
Focus on Core Competencies: By outsourcing sales functions, companies can concentrate on their core competencies, such as product development, operations, and customer service. This focus can lead to better overall business performance and growth.
Speed to Market: Outsourced sales teams can quickly adapt to new markets, launch products, or respond to competitive pressures. Their established processes and networks allow for a faster go-to-market strategy compared to building an in-house team from scratch.
Advanced Technology and Tools: Many outsourced sales providers invest in the latest sales technologies, such as CRM systems, sales automation tools, and analytics platforms. Access to these tools enhances sales efficiency and provides deeper insights into sales performance.
Enhanced Customer Reach: Outsourced sales services often have established relationships and networks that can help companies penetrate new markets or reach previously untapped customer segments. This expanded reach can drive revenue growth.
Improved Sales Performance: Professional sales outsourcing firms typically operate on performance-based contracts, incentivizing them to deliver results. This model ensures a high level of commitment to achieving sales targets and improving overall sales performance.
Market Intelligence: Outsourced sales providers offer valuable market intelligence, including insights into customer behavior, market trends, and competitive analysis. This information can inform strategic decisions and help companies stay ahead of the competition.
Risk Mitigation: Outsourcing sales functions can reduce business risks associated with market entry, expansion, and fluctuating sales volumes. Providers bring experience in managing various sales challenges, helping companies navigate potential pitfalls.
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The North America engineering service outsourcing industry size reached around US$ 410.4 billion in 2023. Over the forecast period, demand for engineering service outsourcing in North America is projected to expand at 16.8% CAGR, taking the total valuation to US$ 1,940.5 billion by 2033.
Attributes | Key Insights |
---|---|
Current Value (2023) | US$ 410.4 billion |
Projected Value (2033) | US$ 1940.5 billion |
Value CAGR (2023 to 2033) | 16.8% |
2018 to 2022 Engineering Service Outsourcing Demand Outlook in North America
Particular | Value CAGR |
---|---|
H1 | 13.3% (2022 to 2032) |
H2 | 14.4% (2022 to 2032) |
H1 | 16.4% (2023 to 2033) |
H2 | 16.8% (2023 to 2033) |
Adjacent North America Engineering Service Outsourcing Industries
Particulars | Value CAGR |
---|---|
North America Engineering Service Outsourcing | 16.8% |
Automotive Engineering Service Outsourcing | 11.2% |
ATM Outsourcing Service | 6% |
Category-wise Insights
Location | Value CAGR |
---|---|
Onshore | 18.4% |
Offshore | 14.3% |
Service Type | Value CAGR |
---|---|
Outsourced Technical Services | 13.3% |
Designing Services | 20.7% |
Prototyping Services | 17.1% |
System Integration Services | 18.7% |
Testing Services | 14.5% |
Other Services | 11.5% |
Industry | Value CAGR |
---|---|
Process Industries | 14.8% |
Discrete Industries | 18.1% |
Scope of the Report
Attribute | Details |
---|---|
Estimated Value (2024) | US$ 410.4 billion |
Projected Value (2034) | US$ 1940.5 billion |
Expected Growth Rate (2024 to 2034) | 16.8% CAGR |
Forecast Period | 2023 to 2033 |
Historical Data Available for | 2018 to 2022 |
Industry Analysis | US$ Billion for Value |
Key Regions Covered | North America |
Key Countries Covered | United States and Canada |
Key Segments Covered | Location, Service Type, Industry, and Country |
Key Companies Profiled |
|
Report Coverage | Industry Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Key Dynamics and Challenges, and Strategic Growth Initiatives |
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US IT Outsourcing Market Report Segments the Industry Into by Service Type (Application Outsourcing, Infrastructure Outsourcing, Other Services), Organization Size (SMEs, Large Enterprises), Industry (BFSI, IT and Telecom, Manufacturing and More), Contract Type (Fixed-Price, Time-And-Materials, Outcome-Based). The Market Forecasts are Provided in Terms of Value (USD).