04 September, 2019
RALEIGH, North Carolina, September 4, 2019 -The global market for IT Services Outsourcing is expected to grow at a CAGR of 6 percent until 2022, according to Beroe Inc., a procurement intelligence firm. The IT outsourcing industry is currently in an evolution phase and it will be driven by the innovations in demand such as technology and cost-effectiveness.
Regions such as Western Europe, North America, and some parts of APAC (China, India, Australia, and Singapore) have high market maturity for outsourcing IT services. Some regions of Latin America are also expected to be the future growth-driving markets.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The IT services outsourcing market is driven by end-user computing services and technologies such as process automation and virtualization. These factors along with an increase in security service outsourcing and Cloud adoption will continue to drive the market over the next 3 - 5 years. Moreover, the IT outsourcing services are managed by top 8-10 Tier 1 players, but an increase in competition from Tier 2/3 players will lead to a demand from mid-size enterprises as well.
The threat of substitute services is medium for IT outsourcing, as there are plenty of emerging and developing markets such as Philippines, Poland, Brazil, and Egypt, for providing cost advantages in terms of labor force and skill sets. The emergence of RPA/automation process in developing economies also downsizes the threat factor.
Technological developments in the outsourcing of IT services such as artificial intelligence (AI) has helped upgrade RPA (robotic process automation) to cognitive RPA or smart RPA in which automation can be extended to operations that require subjective judgments.
The research methodology adopted for the report included:
Outsourced IT service providers are restricted to work on the products of their customers and they don’t possess any ownership. Hence, any innovation that emerges as a result of the work carried out belongs to the provider. Therefore, the enterprises that outsource their services always have concerns for IP loss as the providers serve multiple customers including their competitor.
The report also includes:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com