IT Services Outsourcing Market Report 2025 (Global Edition)

Global IT Services Outsourcing Market Report 2025 Market Size Split by Service (Application Services, Emerging Technology Services, Data Center Operations, Helpdesk Services, Infrastructure Capacity S...

IT Services Outsourcing Market Report Description

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IT Services Outsourcing Market Insights Video

Competitive Landscape of the IT Services Outsourcing Market

The competitive landscape of the IT Services Outsourcing Market is characterized by numerous players, ranging from large multinational corporations to specialized niche providers. Key companies such as Accenture, IBM, and TCS dominate with comprehensive service offerings and global reach. Meanwhile, emerging firms leverage innovative technologies to carve out market share. Competition is driven by factors like service quality, cost efficiency, and technological advancements. Collaborations and partnerships are increasingly common as companies seek to enhance capabilities and address evolving client needs in a rapidly changing environment.

In June 2023, IBM and Adobe announced the expansion of their partnership to help brands accelerate content supply chains using artificial intelligence (AI). The companies leverage Adobe's AI-powered services, such as Adobe Sensei GenAI and Adobe Firefly, to help brands create, manage, and deliver content more efficiently and effectively. (Source: https://newsroom.ibm.com/2023-06-19-IBM-Expands-Partnership-with-Adobe-To-Deliver-Content-Supply-Chain-Solution-Using-Generative-AI#:~:text=ARMONK%2C%20N.Y.%20and%20CANNES%2C%20France,Sensei%20GenAI%20services%20and%20Adobe) In June 2023, Sonata Software, a global modernization and software development firm partnered with SAP Commerce to help companies accelerate the process of digital transformation. SAP Commerce, an enterprise e-commerce platform to be paired with Sonata Software's digital commerce experience to give end-to-end e-commerce solutions to customers. This includes storefront design, implementation, and maintenance in order to provide customers with consistent and personalized experiences across several touchpoints and channels. (Source: https://www.sonata-software.com/newsroom/press-release/sonata-software-announces-strategic-partnership-sap-commerce-drive-digital) In April 2023, Fujitsu, a Japanese information technology (IT) company, announced the expansion of its digital transformation (DX) consulting capabilities throughout Europe. In Spain and Estonia, the business opened two new Near Response Centers (NRCs). The NRCs provide consumers with quick access to highly experienced experts who can assist them with their digital transformation concerns. (Source: https://www.fujitsu.com/emeia/about/resources/news/press-releases/2023/emeia-20230413-fujitsu-expands-european-dx-consultancy-capabilities.html) In March 2023, Cohesity and IBM announced a partnership to address the essential demand for resiliency in hybrid cloud settings and data security. The two companies' data protection, cyber resilience, and data management technologies are to be combined to form IBM Storage Defender, a new service that integrates Cohesity's data protection. IBM Storage Defender is intended to assist enterprises in protecting their data from a wide range of threats such as malware, ransomware, and data exfiltration. The technology aims to give users a consolidated view of data security across cloud, on-premises, and hybrid settings. (Source: https://newsroom.ibm.com/2023-03-02-IBM-and-Cohesity-Announce-New-Data-Security-and-Resiliency-Collaboration-Advancing-Enterprises-Ability-to-Fight-the-Impacts-of-Breaches-and-Cyberattacks)

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

• Accenture
• IBM
• TCS (Tata Consultancy Services)
• Cognizant
• Infosys
• Wipro
• HCL Technologies
• Capgemini
• DXC Technology
• Atos
• Fujitsu
• NTT Data
• Genpact
• Mindtree
• Tech Mahindra
• Confidential Data
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• Data Hidden

*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!

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Regional Analysis of the IT Services Outsourcing Market

Which Region Dominates the IT Services Outsourcing Market in 2024?

According to Cognitive Market Research, North America is poised to dominate the IT Services Outsourcing Market in 2024, driven by a robust demand for advanced technology solutions and a significant concentration of established IT firms. The region benefits from a highly developed infrastructure and a strong emphasis on innovation, positioning it as a hub for businesses seeking efficient outsourcing solutions. Moreover, the presence of major players and a skilled workforce contribute to North America's competitive advantage. Companies across various sectors, including healthcare, finance, and telecommunications, increasingly rely on outsourced IT services to enhance operational efficiency and focus on core competencies. This trend reinforces North America's leading position in the global IT services outsourcing landscape.

Which Region is Expanding at the Fastest CAGR?

The Asia-Pacific region is expanding at the fastest CAGR in the IT Services Outsourcing Market, driven by rapid economic growth and increasing digital transformation initiatives. Countries such as India, China, and Singapore are emerging as key players, with a vast pool of skilled professionals and competitive labor costs attracting global businesses. The region's strong focus on technology adoption and innovation further fuels demand for outsourcing services. Enterprises are increasingly seeking to leverage advanced technologies, including artificial intelligence and cloud computing, to enhance operational efficiency. As businesses look to optimize resources and reduce costs, the Asia-Pacific region's robust outsourcing capabilities position it for significant growth in the coming years.

The current report Scope analyzes IT Services Outsourcing 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 Services Outsourcing

According to Cognitive Market Research, the global IT Services Outsourcing market size was estimated at USD 642514.2 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 257005.68 million in 2024 and will grow at a compound annual growth rate (CAGR) of 6.7% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the IT Services Outsourcing market with a market size of USD 202777.48 million in 2024 and is projected to grow at a CAGR of 10.5% during the forecast period. The US market benefits from a strong emphasis on technological innovation and a well-established IT services ecosystem.
• The Canada IT Services Outsourcing market had a market share of USD 30840.68 million in 2024 and is projected to grow at a CAGR of 11.5% during the forecast period. Canada experiences growth due to its skilled workforce and favorable government policies promoting technology adoption.
• The Mexico IT Services Outsourcing market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 23387.52 million in 2024.

Europe IT Services Outsourcing

According to Cognitive Market Research, the global IT Services Outsourcing market size was estimated at USD 642514.2 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 192754.26 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.0% from 2024 to 2031.

• The United Kingdom IT Services Outsourcing market had a market share of USD 32382.72 million in 2024 and is projected to grow at a CAGR of 7.8% during the forecast period. The UK market thrives on a high demand for digital transformation and the need for compliance in various sectors.
• The France IT Services Outsourcing market is projected to witness growth at a CAGR of 6.2% during the forecast period, with a market size of USD 17733.39 million in 2024.
• According to Cognitive Market Research, the German IT Services Outsourcing market size was valued at USD 38165.34 million in 2024 and is projected to grow at a CAGR of 7.2% during the forecast period. Germany's robust manufacturing base and focus on Industry 4.0 drive demand for IT outsourcing services.
• The Italy IT Services Outsourcing market is projected to witness growth at a CAGR of 6.4% during the forecast period, with a market size of USD 16576.87 million in 2024.
• The Russia IT Services Outsourcing market is projected to witness growth at a CAGR of 6.0% during the forecast period, with a market size of USD 29876.91 million in 2024.
• The Spain IT Services Outsourcing market is projected to witness growth at a CAGR of 6.1% during the forecast period with a market size of USD 15805.85 million in 2024
• The Luxembourg IT Services Outsourcing market is projected to witness growth at a CAGR of 7.1% during the forecast period, with a market size of USD 5975.38 million in 2024.
• The Portugal IT Services Outsourcing market is projected to witness growth at a CAGR of 6.8% during the forecast period, with a market size of USD 4047.84 million in 2024.
• The Greece IT Services Outsourcing market is projected to witness growth at a CAGR of 7.3% during the forecast period, with a market size of USD 2313.05 million in 2024.
• The Rest of Europe's IT Services Outsourcing market is projected to witness growth at a CAGR of 5.7% during the forecast period, with a market size of USD 29876.91 million in 2024.

Asia Pacific IT Services Outsourcing

According to Cognitive Market Research, the global IT Services Outsourcing market size was estimated at USD 642514.2 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 147778.27 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.5% from 2024 to 2031.

• According to Cognitive Market Research, the China IT Services Outsourcing market size was valued at USD 66500.22 million in 2024 and is projected to grow at a CAGR of 10.0% during the forecast period. China's rapid digital transformation and expanding consumer market are significant growth factors for IT services outsourcing.
• The Japan IT Services Outsourcing market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 20393.40 million in 2024.
• The India IT Services Outsourcing market had a market share of USD 17733.39 million in 2024 and is projected to grow at a CAGR of 12.3% during the forecast period. India stands out due to its vast pool of IT talent and competitive labor costs, attracting global outsourcing.
• The South Korean IT Services Outsourcing market is projected to witness growth at a CAGR of 9.6% during the forecast period, with a market size of USD 14777.83 million in 2024.
• The Australian IT Services Outsourcing market is projected to witness growth at a CAGR of 10.2% during the forecast period, with a market size of USD 7684.47 million in 2024.
• The South East Asia IT Services Outsourcing market is projected to witness growth at a CAGR of 11.5% during the forecast period, with a market size of USD 10196.70 million in 2024.
• The Rest of Asia Pacific IT Services Outsourcing market is projected to witness growth at a CAGR of 10.3% during the forecast period, with a market size of USD 10492.26 million in 2024.

South America IT Services Outsourcing

According to Cognitive Market Research, the global IT Services Outsourcing market size was estimated at USD 642514.2 Million, out of which the Latin America held the market share of around 5% of the global revenue with a market size of USD 32125.71 million in 2024 and will grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil IT Services Outsourcing market size was valued at USD 13749.80 million in 2024 and is projected to grow at a CAGR of 8.5% during the forecast period. Brazil's growing middle class and increasing demand for digital services fuel the outsourcing market's expansion.
• Argentina's IT Services Outsourcing market had a market share of USD 5397.12 million in 2024 and is projected to grow at a CAGR of 8.8% during the forecast period. Argentina benefits from its technological talent and a favorable exchange rate, enhancing its outsourcing appeal.
• Colombia IT Services Outsourcing market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 2859.19 million in 2024.
• Peru IT Services Outsourcing market is projected to witness growth at a CAGR of 8.1% during the forecast period, with a market size of USD 2634.31 million in 2024.
• Chile IT Services Outsourcing market is projected to witness growth at a CAGR of 8.2% during the forecast period, with a market size of USD 2313.05 million in 2024.
• The Rest of Latin America's IT Services Outsourcing market is projected to witness growth at a CAGR of 7.0% during the forecast period, with a market size of USD 5172.24 million in 2024.

Middle East IT Services Outsourcing

According to Cognitive Market Research, the global IT Services Outsourcing market size was estimated at USD 642514.2 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 12850.28 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.2% from 2024 to 2031..

• The GCC Countries IT Services Outsourcing market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 5499.92 million in 2024. The GCC countries are investing heavily in digital initiatives and economic diversification, driving IT services growth.
• The Egypt IT Services Outsourcing market is projected to witness growth at a CAGR of 8.5% during the forecast period, with a market size of USD 1349.28 million in 2024.
• The South Africa IT Services Outsourcing market is projected to witness growth at a CAGR of 9.2% during the forecast period, with a market size of USD 2030.34 million in 2024. South Africa's strategic location and increasing emphasis on technology adoption bolster its IT services outsourcing market.
• The Turkey IT Services Outsourcing market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 1105.12 million in 2024.
• The Nigeria IT Services Outsourcing market is projected to witness growth at a CAGR of 7.3% during the forecast period, with a market size of USD 1349.28 million in 2024.
• The Rest of the MEA IT Services Outsourcing market is projected to witness growth at a CAGR of 7.2% during the forecast period, with a market size of USD 1516.33 million in 2024.

IT Services Outsourcing Market Analysis

IT Services Outsourcing Market Location Segment Analysis

According to Cognitive Market Research, The IT Services Outsourcing Market is primarily segmented into on-shore and off-shore locations. The on-shore segment encompasses service providers located within the same country as the client, offering advantages such as minimal time zone differences, enhanced communication, and a better understanding of local market needs. This segment is favored by organizations prioritizing control and collaboration, as it allows for seamless integration of services and easier compliance with regulations. While on-shore services typically come at a premium, they provide valuable peace of mind, fostering closer relationships and facilitating quick responses to evolving client requirements. This segment continues to hold a significant share of the market due to these compelling benefits.

The off-shore segment is witnessing remarkable growth, driven by a combination of cost efficiency and access to a skilled workforce in countries like India, the Philippines, and China. Companies are increasingly outsourcing IT services to off-shore providers to take advantage of lower labor costs while maintaining high-quality service delivery. This segment is recognized as the fastest-growing in the market, attracting businesses aiming to enhance operational flexibility and scalability. The demand for innovative technologies, such as cloud computing and artificial intelligence, further propels off-shore outsourcing, as providers specialize in cutting-edge solutions. Consequently, businesses are eager to tap into off-shore expertise, positioning this segment for substantial expansion in the coming years.

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 Services Outsourcing Industry. Request a Free Sample PDF!

IT Services Outsourcing Market Service Segment Analysis

According to Cognitive Market Research, The largest segment within the IT Services Outsourcing Market is Application Services, encompassing a wide range of software development, maintenance, and management solutions. This segment has gained traction due to the increasing reliance on custom applications that cater to specific business needs. Organizations are turning to outsourced application services to enhance operational efficiency, reduce development costs, and accelerate time-to-market for new software solutions. With the growing trend of digital transformation, companies are eager to adopt innovative applications that improve user experience and streamline processes. The segment also benefits from advancements in cloud technologies, enabling businesses to access scalable application solutions that align with evolving market demands. As organizations continue to prioritize digital initiatives, application services will maintain its prominent position in the outsourcing landscape.

Emerging Technology Services represent the fastest-growing segment in the IT Services Outsourcing Market, driven by the rapid adoption of technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT). As businesses seek to innovate and gain a competitive edge, they are increasingly leveraging outsourced expertise in these advanced technologies. The need for organizations to integrate intelligent solutions into their operations has led to a surge in demand for services that encompass data analytics, automation, and cybersecurity. Companies are recognizing the value of partnering with specialized providers to stay ahead in a digital economy characterized by constant change. This segment's growth reflects a broader shift towards technological innovation, underscoring the critical role that emerging technologies play in shaping the future of business operations.

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

IT Services Outsourcing End Use Segment Analysis

IT Services Outsourcing Market End Use Segment Analysis

According to Cognitive Market Research, The BFSI (Banking, Financial Services, and Insurance) sector represents the largest segment in the IT Services Outsourcing Market. This industry's reliance on technology for secure transaction processing, data management, and compliance necessitates robust IT solutions. Financial institutions seek outsourcing to enhance operational efficiency while managing risks effectively. By partnering with specialized service providers, BFSI organizations can access cutting-edge technologies and expertise without diverting resources from core business functions. The increasing emphasis on digital banking, mobile payments, and regulatory compliance is driving sustained demand for outsourced IT services within this segment. Furthermore, as cyber threats continue to evolve, financial institutions are prioritizing managed security services, further solidifying BFSI's dominant position in the outsourcing landscape.

The healthcare sector is emerging as the fastest-growing segment in the IT Services Outsourcing Market. The ongoing digital transformation within healthcare organizations underscores the need for advanced IT solutions that enhance patient care, streamline operations, and ensure regulatory compliance. As telehealth and electronic health records gain traction, healthcare providers increasingly turn to outsourcing to manage these complex systems efficiently. This segment benefits from the growing demand for data analytics, artificial intelligence, and cybersecurity solutions tailored specifically to healthcare needs. By outsourcing IT services, healthcare organizations can focus on delivering quality care while leveraging technological innovations. As the healthcare landscape continues to evolve, the demand for specialized IT outsourcing services is expected to accelerate, positioning this segment for significant growth in the coming years.

• Aerospace & Defense
• BFSI
• Healthcare
• Retail & E-commerce
• Telecom & Media
• 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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