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).

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.

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.

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.

The United States IT outsourcing market, valued at approximately $250 billion in 2025, is projected to experience steady growth, driven by several key factors. The increasing adoption of cloud computing, the need for enhanced cybersecurity measures, and the growing demand for digital transformation initiatives across various industries are major contributors to this expansion. Large enterprises are significantly driving market growth due to their substantial IT budgets and the complexities of managing large-scale IT infrastructure. The Banking, Financial Services, and Insurance (BFSI) sector, along with IT and Telecom, represent significant market segments, exhibiting high demand for outsourcing services to improve efficiency and reduce operational costs. Application outsourcing, encompassing software development and maintenance, continues to be a primary service type, reflecting the ongoing need for customized software solutions and agile development methodologies. While potential restraints such as data security concerns and vendor lock-in exist, the overall market outlook remains positive. The consistent demand for specialized skills, coupled with the cost advantages of outsourcing, is expected to fuel growth throughout the forecast period. The market's 2.87% CAGR suggests a consistent, albeit moderate, expansion. This growth rate can be attributed to the ongoing evolution of IT technologies and the increasing reliance on external expertise to manage complex IT environments. Segments like Infrastructure Outsourcing are also expected to see growth, albeit perhaps at a slightly slower pace compared to application outsourcing, driven by the migration to hybrid cloud models and the ongoing need for managed services. The forecast period, 2025-2033, presents opportunities for IT outsourcing providers to capitalize on market trends by focusing on specialized solutions, such as AI-driven services and advanced cybersecurity offerings, to meet the evolving needs of their clients. The competition among established players like IBM, HP Enterprise, Microsoft, and DXC Technology will likely remain intense, prompting continuous innovation and strategic partnerships. 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: 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. Notable trends are: Ongoing Migration Toward Cloud and the Adoption of Virtualized Infrastructure to Drive the Market.

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 forecast to continuously increase between 2024 and 2029 by in total ** billion U.S. dollars (****** percent). After the ninth consecutive increasing year, the indicator is estimated to reach ***** 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 Sweden and France. The Statista Market Insights cover a broad range of additional markets.

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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 mecha

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

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.

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.

The revenue in the 'Application Outsourcing' segment of the IT services market in the United States was forecast to continuously increase between 2024 and 2029 by in total *** billion U.S. dollars (+*** percent). After the ninth consecutive increasing year, the indicator is estimated to reach ***** billion U.S. dollars and therefore a new peak in 2029. Notably, the revenue of the 'Application Outsourcing' segment of the IT services market was continuously increasing over the past years.Find more information concerning Canada and Poland. The Statista Market Insights cover a broad range of additional markets.

The US Healthcare BPO Market report segments the industry into By Payer Service (Human Resource Management, Claims Management, and more), By Provider Service (Patient Enrollment and Strategic Planning, Patient Care Service, Revenue Cycle Management), and By Pharmaceutical Service (Research and Development, Manufacturing, Non-clinical Services). Get five years of historical trends and future forecasts for the market.

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).

BPO companies have fared well recently, supported by a strong economy and rising demand in the human resource, finance, accounting and insurance sectors, collectively generating a large portion of BPO business. Also, rising wages and increased operating costs associated with healthcare expansion helped drive employers to BPO companies as a method of cost control. Nonetheless, rising wages have cut into BPO companies' profit. Revenue has been growing at a CAGR of 1.7% to an estimated $73.0 billion over the past five years, with revenue expected to inch upward 0.7% in 2024. Mixed economic outcomes, coupled with a higher frequency of layoffs from finance and insurance clients, has caused profit to slip and resulted in smaller contracts for BPO companies. The outbreak of the pandemic slowed the growth of BPO companies. Overall, falling corporate profit and reductions in the number of businesses stifled growth for BPO companies in 2020. Nonetheless, some service providers benefitted from the outbreak. Downstream markets demanded human resources services to help transition to remote work following stay-at-home orders and social distancing measures. The healthcare sector increasingly needed BPO companies for compliance and billing support. Going forward, BPO companies will continue to enjoy growth, but rising wage costs will continue to hinder profit. Layoffs in the financial services and technology sectors will benefit BPO companies as they look to reduce costs associated with in-house accounting and human resource departments. Still, smaller contracts amid economic uncertainty early may hinder growth. Companies looking to BPO companies offering integrated IT solutions may hinder growth for traditional BPO companies slow to adopt these practices. Healthcare providers will increasingly require BPO services, promoting growth. Nonetheless, revenue is forecast to grow at a CAGR of 1.8% through the end of 2029 to an estimated $79.7 billion.

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.

Learn more about Market Research Intellect's report_name, valued at current_value in 2024, and set to grow to forecast_value by 2033 with a CAGR of cagr_value (2026-2033).

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

Market Size statistics on the Business Process Outsourcing Services industry in the US

The revenue in the 'IT Outsourcing' segment of the IT services market in Germany was forecast to continuously increase between 2024 and 2029 by in total **** billion U.S. dollars (+***** percent). After the ninth consecutive increasing year, the indicator is estimated to reach ***** 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 the United States and Sweden. The Statista Market Insights cover a broad range of additional markets.

The IT outsourcing market, valued at $617.69 million in 2025, is projected to experience robust growth, driven by several key factors. The increasing adoption of cloud computing, the need for enhanced digital transformation initiatives across industries, and the persistent shortage of skilled IT professionals globally are fueling significant demand for outsourced IT services. Businesses are increasingly outsourcing tasks such as application development and maintenance, cybersecurity, data analytics, and infrastructure management to leverage specialized expertise and cost efficiencies. This trend is further propelled by the rise of agile methodologies and the demand for faster software development cycles. Companies are prioritizing strategic partnerships with IT outsourcing providers to focus on core competencies and enhance operational flexibility. The competitive landscape is characterized by a mix of large multinational corporations like IBM, Accenture, and TCS, alongside smaller, specialized firms catering to niche market segments. The market's Compound Annual Growth Rate (CAGR) of 5.48% from 2019 to 2025 indicates consistent growth, and this momentum is expected to continue through 2033. However, potential restraints include geopolitical instability, economic fluctuations, and the need for robust data security and compliance measures. Geographic diversification is expected with North America and Europe maintaining significant market shares, but regions like Asia-Pacific are poised for rapid expansion due to the burgeoning tech sector and increasing digitalization efforts. The market segmentation will likely see a continued focus on cloud-based services, cybersecurity solutions, and data analytics, leading to further specialization within the IT outsourcing industry. Continuous innovation in technologies such as artificial intelligence and machine learning will further reshape the landscape, creating new opportunities and challenges for both service providers and clients. Recent developments include: January 2024: DashDevs, a software development company with offices in the United States, the United Kingdom, and Europe, announced the acquisition of iTomych Studio (a Ukrainian outsourcing company). This strategic collaboration will focus on fintech innovation and expanding DashDevs' presence globally. It aims to create a shared culture to enhance service quality and optimization of processes., June 2023: Grant Thorton in Poland announced a crucial step in strengthening its digital services. The company joined hands with IT Omega, a provider of IT outsourcing services. GT is a strategic investor in the company, taking 80% of the ownership. Through this, it planned to expand the range of digital services to complement audit, advisory, and outsourcing services., May 2023: TDCX officially unveiled its plans to expand its facility in Sao Paulo, Brazil. The company is a leading provider of digital customer experience (CX) solutions for technology and blue-chip enterprises. With the advent of cutting-edge technologies, including generative artificial intelligence (AI), TDCX is poised to revolutionize the CX landscape in various domains. These advancements empower service providers like TDCX to further automate their operations, offer enhanced predictive capabilities through data analysis, and optimize procedures for their valued clients.. Key drivers for this market are: Growing Demand for Efficiency and Scalable IT Infrastructure, 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: Growing Demand for Efficiency and Scalable IT Infrastructure, 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. Notable trends are: BFSI to be the Largest End-user Vertical.