Top Facts You Didn’t Know About IT Services Outsourcing market & Impact of COVIDPosted by Mrudula Anil Karmarkar on January 25th, 2022 The global IT services outsourcing market size is anticipated to reach USD 937.6 billion by 2027 registering a CAGR of 7.7%, according to a new report by Grand View Research, Inc. Rising need to reduce operational costs and the lack of in-house information technology engineering talent are anticipated to drive the industry over the forecast period. The IT operations subcontracting industry is witnessing an upsurge in core information technology activities, not just to save capital, but to benefit from skilled and experienced professionals to deliver superior quality solutions. A significant number of small-to-medium businesses are likely to fully outsource their IT operations owing to their constrained infrastructure capacities and agile methodologies. Rapid transformation of business models to keep pace with the emerging technologies, such as Artificial Intelligence (AI), Internet-of-Things (IoT), Robotic Process Automation (RPA), blockchain, and deep learning, are expected to drive the market. Onshoring of IT services as against offshoring is likely to grow at a considerable rate over the forecast period. This may be attributed to better reliability, control, responsiveness, market knowledge, and ease of communication. Companies have started subcontracting application development and maintenance services to onshore service providers to reduce hidden costs of offshoring. The industry is beholding new markets for subcontracting IT operations such that companies ensure focus on their core business and leverage advanced technologies with full capacity to manage the corporate environment. However, captive centers and data-security related concerns are a constant roadblock to the otherwise growing industry. Rapid innovations, offering various benefits to different industries globally, will also support market growth. Delegation of time-consuming and tedious tasks to service providers empowers businesses to concentrate on their central functionalities and reduces the load on their internal resources. It also offers optimization of capacity, resources, flexibility to meet demands of the changing commercial environment, and better access to innovation and intellectual property. Download Free Sample Report @ https://www.grandviewresearch.com/industry-analysis/it-services-outsourcing-market/request/rs1 Service providers are coming up with different operational and pricing models to gain a competitive edge over others. The advent of cloud computing has fueled market growth as it enables firms to automate and ease their business applications and processes. Hence, enterprises, especially Small & Medium Businesses (SMBs), are largely deploying Software as a Service (SaaS) model and Infrastructure as a Service (IaaS) model, which has compelled the service providers to capitalize on the cloud-based offerings. IT Services Outsourcing Market Report Highlights
Companies are even seen engaging in multi-sourcing that involves division of a project into different components, which are handled by several independent vendors. This allows the companies to reduce their operational risk and dependency owing to the project’s split amongst different vendors. In 2017, A German electric utility firm, E.ON SE outsourced its network system to T-systems International GmbH and its data center and desktop operations to Hewlett Packard Enterprise Development LP. Various key companies in the industry, such as NTT Data and Capgemini, have implemented the multi-sourcing models. However, these models can be challenging to implement as the company has to co-ordinate between the suppliers continually. The growth of IT operations outsourcing is further anticipated to be driven by the commencement of digitization trends prompting the SMBs as well as the large businesses to opt for advanced IT infrastructure. Development of the Industrial Internet of Things (IIoT) across the Industry 4.0 platform is expected to fuel the demand for IT operations within the hybrid information technology-managed environment. Companies are subcontracting these IT operations so as to keep pace with the market dynamics and reduce their overhead costs and lead time. However, the global market is witnessing a shrink in its growth rate due to increasing number of Global In-house Centers (GICs) of companies. According to Nasscom, in FY2020, around 1,250 MNCs worldwide set up more than 1,750 Global Capability Centers (GCCs) in India. Companies in India and China who have been preferred for offshoring information technology tasks are now facing stiff competition from new IT services outsourcing markets not only in the APAC region but also in Europe. Some of the prominent players in the IT services outsourcing market include:
About Grand View Research Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare. Like it? Share it! More by this author |