IT services outsourcing market is estimated to be valued at US$ 502.2 Bn in 2024; 8.9 % CAGR Projected- Coherent Market Insights

A newly published report by Coherent Market Insights reveals a sustainable growth in opportunities in the IT services outsourcing market.

Coherent Market Insights’ analyst projected the IT services outsourcing market to be valued at US$ 502.2 Bn in 2024. It is expected to exhibit a CAGR of 8.9 % over the forecast period 2024 -2031.

Market Dynamics:

The rising demand for IT skills and expertise among organizations drives market growth. Organizations aim to focus more on their core competencies by outsourcing non-core operations such as infrastructure management, application development.

Cost advantages of outsourcing non-core operations are the major factors driving the growth of the IT services outsourcing market. This enables organizations to achieve higher operational efficiencies at lower costs.

Moreover, shortage of skilled IT professionals and the advantages of on-demand talent pools available with outsourcing companies supplements the market growth.

Market Trends:

• Cloud-based services is a key trend driving market growth. Cloud platforms provide flexible resources on demand along with reduced infrastructure and maintenance costs. This makes cloud-based services more scalable and efficient compared to traditional on-premise models.

• Moreover, the pandemic has accelerated the digital transformation of businesses and increased the demand for cloud-based solutions.

• Analytics outsourcing is another trend gaining traction. Organizations are outsourcing more analytics functions such as data analytics, business intelligence, and big data analytics. It manage large and complex data volumes and gain optimal business insights. It also helps reduce costs and resources required for setting up in-house analytics capabilities. These factors are fueling the demand for analytics outsourcing.

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IT Services Outsourcing Market Opportunities

• Paint application services is expected to hold a prominent share of the market during the forecast period. Paint application services include surface preparation, applying coats of paint, sanding and polishing painted surfaces. Outsourcing paint application to experts allows OEMs and body shops to focus on core activities.

• Quality control and logistics services is expected to hold prominent share in the market. Quality control and logistics services such as inspecting painted surfaces, managing inventory and coordinating supply chain. It helps automotive companies ensure adherence to quality standards and optimize operations.

Key Market Takeaways

• The global IT services outsourcing market is anticipated to witness a CAGR of 8.9% during the forecast period 2024-2031. This is due to growing need among organizations to enhance efficiency and focus on core competencies.

• On the basis of service type, quality control segment is expected to hold a dominant position. This is due to stringent regulations and rising emphasis on quality by automotive manufacturers.

• On the basis of outsourcing model, partial outsourcing segment is expected to hold a dominant position over the forecast period. This is due to preference of companies to outsource non-core activities while retaining control over critical functions.

• On the basis of end user, OEMs segment is expected to be the largest segment over the forecast period. This is due to large scale outsourcing of activities by vehicle manufacturers to stay competitive.

• North America is expected to hold a dominant position over the forecast period. This is due to presence of major automotive companies focusing on improving productivity.

Competitor Insights

Key players operating in the IT services outsourcing market include

• Accenture
• Capgemini
• Cognizant
• DXC Technology
• IBM
• Infosys
• Tata Consultancy Services

Recent Developments: 

• In June 2023, Hewlett Packard Enterprise (HPE) expanded its cooperation with Amazon Web Services (AWS) to enable hybrid cloud transformation for organizations. This improved collaboration seeks to give customers a more efficient way to manage and migrate workloads across HPE’s on-premises infrastructure and AWS.

• In April 2023, Fujitsu, a top Japanese IT business, expanded its digital transformation (DX) consulting services to Europe. The company has established two new Near Response Centers (NRCs) in Spain and Estonia, giving clients immediate access to highly experienced experts who can help them with their digital transformation difficulties.

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Coherent Market Insights is a global market intelligence and consulting organization focused on assisting our plethora of clients achieve transformational growth by helping them make critical business decisions. We are headquartered in India, having sales office at global financial capital in the U.S. and sales consultants in United Kingdom and Japan. Our client base includes players from across various business verticals in over 57 countries worldwide. We create value for clients through our highly reliable and accurate reports. We are also committed in playing a leading role in offering insights in various sectors post-COVID-19 and continue to deliver measurable, sustainable results for our clients.