IT Outsourcing Service Market Report 2025 (Global Edition)

Global IT Outsourcing Service Market Report 2025 Market Size Split by Service Type (Application Development & Maintenance, Infrastructure Management Services, Quality Assurance & Testing, Cybersecurit...

IT Outsourcing Service Market Report Description

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IT Outsourcing Service Market Insights Video

Competitive Landscape of the IT Outsourcing Service Market

The competitive landscape of the IT outsourcing service market is highly dynamic, with intense competition among global and regional players. Major companies leverage their extensive resources and global reach to offer comprehensive service portfolios, including software development, infrastructure management, and consulting. The market is also influenced by trends such as digital transformation, cloud adoption, and the increasing focus on cybersecurity, prompting service providers to adapt their offerings. Strategic partnerships, mergers & acquisitions, and geographic expansion are common market strategies employed by companies to enhance their capabilities and deliver integrated solutions.

In June 2023, Sonata Software, a global IT modernization and software development firm, teamed with SAP Commerce to assist businesses speed their digital transformation. SAP Commerce is an enterprise e-commerce platform that will be combined with Sonata Software's digital commerce experience to provide customers with comprehensive e-commerce solutions. This encompasses storefront design, implementation, and maintenance to ensure that customers receive consistent and personalized experiences across all touchpoints and channels. (Source: https://www.sonata-software.com/newsroom/press-release/sonata-software-announces-strategic-partnership-sap-commerce-drive-digital) In June 2023, IBM and Adobe declared an expansion of their collaboration to assist brands in accelerating content supply chains using artificial intelligence. The companies use Adobe's AI-powered services, such as Adobe Sensei GenAI and Adobe Firefly, to support brands in creating, managing, and delivering content more quickly and effectively. (Source: https://newsroom.ibm.com/2023-06-19-IBM-Expands-Partnership-with-Adobe-To-Deliver-Content-Supply-Chain-Solution-Using-Generative-AI) In June 2023, Accenture purchased Flutura, an Indian industrial AI business, to strengthen its industrial AI offerings for clients in the energy, chemicals, metals, mining, and pharmaceutical industries. Accenture made the strategic decision to acquire Flutura to increase its market share in the industrial AI space. (Source: https://newsroom.accenture.com/news/2023/accenture-completes-acquisition-of-flutura) In April 2023, Fujitsu, a Japanese information technology (IT) corporation, announced the extension of its digital transformation (DX) consulting services across Europe. The company has set up two additional Near Response Centers (NRCs) in Spain and Estonia. The NRCs give consumers instant access to highly experienced specialists who can help them with their digital transformation needs. (Source: https://www.fujitsu.com/emeia/about/resources/news/press-releases/2023/emeia-20230413-fujitsu-expands-european-dx-consultancy-capabilities.html)

Top Companies Market Share in IT Outsourcing Service Industry: (In no particular order of Rank)

• Accenture (Ireland)
• Tata Consultancy Services (TCS) (India)
• Infosys (India)
• Cognizant (U.S.)
• Wipro (India)
• HCL Technologies (India)
• IBM (U.S.)
• Capgemini (France)
• DXC Technology (U.S.)
• NTT Data (Japan)
• Tech Mahindra (India)
• Fujitsu (Japan)
• CGI (Canada)
• EPAM Systems (U.S.)
• Atos (France)
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.

Regional Analysis of the IT Outsourcing Service Market

Which Region Dominates the IT Outsourcing Service Market in 2024?

According to Cognitive Market Research, North America holds a majority share in the global IT outsourcing service market revenue primarily due to its advanced technological infrastructure, a highly skilled workforce, and a strong demand for innovative IT solutions. This region is home to numerous Fortune 500 companies that seek to leverage outsourcing to enhance operational efficiency, reduce costs, and access specialized expertise. The regional presence of leading IT outsourcing firms and service providers further strengthens the market's ecosystem, fostering competition and innovation.

Which Region is Expanding at the Fastest CAGR?

The Asia Pacific stands out as the fastest-growing region in the global IT outsourcing service market due to its rapidly expanding economy, large pool of skilled IT professionals, and increasing adoption of digital technologies. Countries such as India, China, and the Philippines have become major hubs for IT outsourcing, offering cost-effective solutions and a diverse range of services, from software development to customer support. The rise of startups and technological innovation in these countries has further fueled demand for outsourcing services as businesses seek to enhance their capabilities and scale operations quickly.

The current report Scope analyzes IT Outsourcing Service Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America IT Outsourcing Service

According to Cognitive Market Research, the global IT outsourcing service market size was estimated at USD 645854.5 million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 258341.8 million in 2024 and will mature at a CAGR of 6.7% from 2024 to 2031.

• According to Cognitive Market Research, the U.S. had a major share in the IT outsourcing service market with a market size of USD 203831.7 million in 2024 and is likely to prosper at a CAGR of 6.5% in the forecast period. The U.S. market is propelled by rapid technological advancements and a robust startup ecosystem, fostering innovation in IT services outsourcing.
• The Canada IT outsourcing service market had a market share of USD 31001 million in 2024 and is likely to scale at a CAGR of 7.5% in the forecasted period. In Canada, the growth of the IT services market is mainly influenced by government initiatives promoting digital adoption across various sectors.
• The Mexico IT outsourcing service market is set to experience growth at a CAGR of 7.2% within the forecast timeframe, with a market size of USD 23509.1 million in 2024.

Europe IT Outsourcing Service

According to Cognitive Market Research, the global IT outsourcing service market size was estimated at USD 645854.5 million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 193756.4 million in 2024 and will diversify at a compound annual growth rate (CAGR) of 7% from 2024 to 2031.

• The U.K. IT outsourcing service market had a market share of USD 32551.1 million in 2024 and is likely to broaden at a CAGR of 7.8% within the predicted timeframe. In the U.K., the ongoing transformation of financial services, particularly with the rise of fintech companies, is fueling demand for outsourced IT solutions.
• The France IT outsourcing service market is anticipated to develop at a 6.2% CAGR throughout the projected time frame, reaching USD 17825.6 million in 2024.
• According to Cognitive Market Research, the German IT outsourcing service market size was valued at USD 38363.8 million in 2024 and is likely to evolve at a CAGR of 7.2% in the estimated period. The push towards digitalization and smart manufacturing solutions is prompting German businesses to seek external IT expertise to enhance operational efficiency.
• The Italy IT outsourcing service market is projected to witness growth at a CAGR of 6.4% over the forecast time frame, with a market value size of USD 16663 million in 2024.
• The Russia IT outsourcing service market is likely to witness growth at a CAGR of 6% in the projected period, with a market value size of USD 30032.2 million in 2024.
• The Spain IT outsourcing service market is predicted to witness growth at a CAGR of 6.1% during the assessment period, with a market size of USD 15888 million in 2024.
• The Luxembourg IT outsourcing service market is projected to witness growth at a CAGR of 7.1% during the research time frame, with a market size of USD 6006.4 million in 2024.
• The Portugal IT outsourcing service market is anticipated to witness growth at a CAGR of 6.8% during the forecasting time frame, with a market size of USD 4068.9 million in 2024.
• The Greece IT outsourcing service market is predicted to witness growth at a CAGR of 7.3% over the assessment period, with a market size of USD 2325.1 million in 2024.
• The Rest of the European IT outsourcing service market is likely to witness growth at a CAGR of 5.7% in the forecast period, with a market size of USD 30032.2 million in 2024.

Asia Pacific IT Outsourcing Service

According to Cognitive Market Research, the global IT outsourcing service market size was estimated at USD 645854.5 million, out of which Asia Pacific held the market share of nearly 23% of the global revenue with a market size of USD 148546.5 million in 2024 and will emerge at a CAGR of 10.5% from 2024 to 2031.

• According to Cognitive Market Research, the China IT outsourcing service market size was valued at USD 66845.9 million in 2024 and is likely to evolve at a CAGR of 10% in the forecasted period. China has made exceptional initiatives to shift from (cheap) employment manufacturers to high-end industrial production via digitization and industrialization.
• The Japan IT outsourcing service market is expected to flourish at a 9% CAGR throughout the projected time frame, reaching a market value of USD 20499.4 million in 2024.
• The India IT outsourcing service market had a market share of USD 17825.6 million in 2024 and is likely to climb at a CAGR of 12.3% within the anticipated timeframe. India is a mature global IT outsourcing location with a diverse variety of solutions. IT outsourcing firms across the country are actively expanding operations globally due to increased requirements for qualified software developers.
• The South Korean IT outsourcing service market is predicted to widen at a CAGR of 9.6% over the forecasted period, with a market size of USD 14854.7 million in 2024.
• The Australian IT outsourcing service market is likely to witness growth at a CAGR of 10.2% throughout the predicted timeframe, with a market size of USD 7724.4 million in 2024.
• The Southeast Asia IT outsourcing service market is likely to experience growth at a CAGR of 11.5% in the forecast timeframe, with a market size of USD 10249.7 million in 2024.
• The Rest of Asia Pacific IT outsourcing service market is anticipated to see growth at a CAGR of 10.3% in the forecast period, with a market size of USD 10546.8 million in 2024.

South America IT Outsourcing Service

According to Cognitive Market Research, the global IT outsourcing service market size was estimated at USD 645854.5 million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 32292.7 million in 2024 and will climb at a CAGR of 7.9% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil IT outsourcing service market size was valued at USD 13821.3 million in 2024 and is estimated to develop at a CAGR of 8.5% throughout the projection period. In Brazil, the expanding digital economy and the increasing penetration of Internet services are key growth drivers for the IT outsourcing market.
• Argentina IT outsourcing service market had a market share of USD 5425.2 million in 2024 and is likely to climb at a CAGR of 8.8% within the forecasted period. The governmental focus on fostering a digital economy and improving broadband connectivity primarily supports the expansion of IT services in this country.
• Colombia IT outsourcing service market is projected to witness growth at a CAGR of 7.7% within the forecast timeframe, with a market size of USD 2874.1 million in 2024.
• Peru IT outsourcing service market is projected to witness growth at a CAGR of 8.1% throughout the anticipated period, with a market size of USD 2648 million in 2024.
• Chile IT outsourcing service market is likely to observe growth at a CAGR of 8.2% within the estimated time frame, with a market size of USD 2325.1 million in 2024.
• The Rest of Latin American IT outsourcing service market is estimated to see growth at a CAGR of 7% in the forecast period, with a market size of USD 5199.1 million in 2024.

Middle East and Africa IT Outsourcing Service

According to Cognitive Market Research, the global IT outsourcing service market size was estimated at USD 645854.5 million, out of which the Middle East & Africa held the major market share of around 2% of the global revenue with a market size of USD 12917.1 million in 2024 and will scale at a CAGR of 8.2% from 2024 to 2031.

• The GCC countries IT outsourcing service market is anticipated to flourish at a CAGR of 9% during the forecast period, reaching USD 5528.5 million in 2024. In the GCC countries, the push for economic diversification away from oil dependency is leading to increased investments in technology and digital infrastructure.
• The Egypt IT outsourcing service market is expected to develop at an 8.5% CAGR over the forecast period, reaching USD 1356.3 million in 2024.
• The South Africa IT outsourcing service market is predicted to widen at a CAGR of 9.2% within the forecast timeframe, with a market size of USD 2040.9 million in 2024. In South Africa, the rising demand for improved customer service and digital engagement is prompting businesses to outsource IT services.
• The Turkey IT outsourcing service market is projected to witness growth at a CAGR of 7.7% in the forecasted period, with a market size of USD 1110.9 million in 2024.
• The Nigeria IT outsourcing service market is expected to increase at a CAGR of 7.3% over the projected time frame, with a market size of USD 1356.3 million by 2024.
• The Rest of the MEA IT outsourcing service market is predicted to rise at a CAGR of 7.2% in the forecast period, with a market size of USD 1524.2 million in 2024.

IT Outsourcing Service Market Analysis

IT Outsourcing Service Market Service Type Segment Analysis

According to Cognitive Market Research, application development and maintenance is the leading category in the IT outsourcing service market, owing to the growing need for businesses to enhance their operational efficiency and customer engagement through tailored software solutions. Organizations increasingly outsource application development to leverage specialized skills, accelerate time-to-market, and reduce costs. This segment encompasses a range of services, including custom software development, application testing, and ongoing maintenance and support.

Mobility solutions have emerged as the fastest-growing segment within the IT outsourcing service market, mainly due to the increasing adoption of mobile devices and applications across various industries. Businesses are recognizing the need for mobile solutions to enhance customer engagement, improve operational efficiency, and enable real-time access to information. Outsourcing mobility services allows organizations to tap into specialized skills for mobile app development, testing, and deployment, catering to diverse platforms such as iOS and Android.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of IT Outsourcing Service Industry. Request a Free Sample PDF!

IT Outsourcing Service Market Organization Size Segment Analysis

According to Cognitive Market Research, small & medium enterprises (SMEs) represent the dominant segment in the IT outsourcing service market, largely due to their increasing reliance on external expertise to remain competitive. SMEs often face resource constraints and lack the in-house capabilities to manage complex IT needs effectively. They can gain access to modern technologies, lower operating costs, and concentrate on their core business tasks by outsourcing IT.

The large enterprise segment is rapidly developing within the IT outsourcing service market as these organizations seek to optimize their IT operations and enhance strategic initiatives. With complex IT infrastructures and extensive data management needs, large enterprises often turn to outsourcing to gain access to specialized skills, modern technologies, and cost-effective solutions. Multinational corporations are expanding their investment in digital transformation programs, which drives up demand for comprehensive IT outsourcing services.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

IT Outsourcing Service End-User Vertical Segment Analysis

IT Outsourcing Service Market End-User Vertical Segment Analysis

According to Cognitive Market Research, the media & telecommunications sector is recognized as the highest-growing category within the IT outsourcing service market, owing to rapid advancements in technology and the increased demand for digital content and connectivity. With the rise of streaming services, mobile applications, and IoT devices, companies in this sector are seeking innovative IT solutions to enhance user experience and operational efficiency. Outsourcing IT services allows media and telecommunications firms to tap into specialized capabilities, such as software development, network management, and cloud solutions, while focusing on their core business strategies.

The banking, financial services, and insurance (BFSI) sector holds the majority share in the IT outsourcing service market, primarily due to its extensive reliance on technology to enhance service delivery, improve security, and comply with regulatory standards. BFSI organizations are actively outsourcing various IT functions, including application development, cybersecurity, data management, and infrastructure support, to leverage specialized expertise and advanced technologies. This segment benefits from the critical need for robust IT systems that can handle vast amounts of data while ensuring regulatory compliance and mitigating risks.

• BFSI
• Healthcare
• Media & Telecommunications
• Retail & E-commerce
• Transportation & Logistics
• Manufacturing
• Energy & Utilities
• Others

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

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