IT Services Outsourcing Market Intelligence

IT Services Outsourcing Market Description

The global market for IT services outsourcing is anticipated to reach $531 billion while growing at a constant CAGR of 6 percent until 2022. Regions such as Western Europe, North America, and some parts of the APAC, such as China, India, Australia, and Singapore have high market maturity, while parts of Latin America are expected to be the future growth-driving markets. The IT outsourcing industry will be driven by changes in demand due to technology, cost-effectiveness, thus shifting focus from existing markets to least penetrated ones. Key suppliers in the industry are leading players such as Accenture, Cognizant, IBM, HP Enterprise, Tata Consultancy Services, Fujitsu, Infosys, SAP, Oracle, NTT Data, and Capgemini.

The report also provides an overview of major trends prevalent in the industry, followed by a discussion of various drivers and constraints impacting the global market. It also gives the regional market outlook in regions such as North America, Europe, the APAC, the MEA, and the LATAM. It also provides Porter’s five forces analysis on factors such as supplier power, buyer power, barriers to new entrants, the intensity of rivalry, and the threat of substitutes.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Market Trends
Technology & Innovation Trends
Global Supplier List and Capabilities
Mergers and Acquisitions

IT Services Outsourcing Market Trend, Analysis & Forecast

Category Intelligence on IT Services Outsourcing covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Global IT Services Outsourcing Market

The global IT services outsourcing market was valued at $394 billion in 2017. The market is forecasted to grow at a CAGR of 6 percent to $531 billion between 2022
Regions, such as Western Europe, North America, and some parts of APAC, such as China, India, Australia, Singapore, have high market maturity, and parts of Latin America are expected to be the future growth-driving markets for IT services outsourcing

it-services-outsourcing-market-size

IT Services Outsourcing Best Practices

The SLA structure for application development service consists of three main parts

Contract Definition: This specifies the terms and termination of the contract, dispute resolution terms and proprietary rights of the technology involved in the service
Performance Measurement: This specifies the application specifications, functionalities of the tool to be developed, in terms of KPIs and warranty provisions
Work Payment : This explains the phased payments during the development cycle and the respective payment options

Global IT Services Outsourcing Market Maturity

The IT outsourcing industry is currently in an evolution phase, and this will continue to be driven by changes in demand (technology, cost effectiveness etc.) thereby, shifting from the existing markets, i.e. Western Europe, North America, APAC etc. –to the least penetrated markets such as LATAM and MEA
In 2017, 700+ ITO contracts worth more than $130 billion and 150+ BPO contracts worth $25 billion were signed across the world

Market Analysis - IT Services Outsourcing

Shift toward third-party vendors

Traditionally, ERP players, such as SAP and Oracle, derived a large chunk of revenue from maintenance fees. This has forced the buyers to engage with third-party vendors such as Rimini Street and Spinnaker to maintain and support the ERP system to optimize costs
Buyer preference to engage with third-party system integrators for infrastructure management instead of OEMs, like IBM and HP, is expected to continue, as third-party suppliers offer a quality of service similar to that provided by OEMs at lower cost
Increasing cloud adoption: Increase in SaaS adoption is expected to lower the demand for application maintenance outsourcing. This has forced many suppliers to invest in cloud-based offerings to stay competitive in the market
In the IT application outsourcing vertical, suppliers are experimenting with new models, including risk-shared partnerships
IT outsourcing buyers are increasingly looking for more vertical expertise from their suppliers

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