Read More
Quick Overview: The landscape of IT outsourcing is experiencing exponential expansion, with its growth trajectory poised to extend seamlessly into the foreseeable future. As we delve into this discourse, we'll not only unravel the IT outsourcing statistics for 2024 but also unveil an overview of relevant statistics. We will also share IT outsourcing stats in the context of countries, market overview, trends and sectors.
The topic of IT Outsourcing services is a subject of extensive debate, with concerns about its impact on domestic job opportunities, while others recognize the myriad of benefits that comes along with outsourcing.
In recent years, IT outsourcing services have emerged as a favored strategy for bolstering in-house teams, emphasizing augmentation or in-house teams rather than replacing existing employees with cheaper labor. And this is why you can expect the global IT outsourcing market to show an annual growth rate of 8.48% in the forecast period 2024-2029.
If you are in a dilemma or planning to outsource your IT requirements, you should not miss out on these interesting IT outsourcing statistics.
Elevate Your Efficiency and Reduce Costs with Our IT Outsourcing Solutions Today
Connect with Our Experts
Optimize Your Businesses’ ROI through a Thoughtful and Strategic IT Outsourcing Approach
Know More
The demand for highly skilled specialists proficient in complicated technologies is increased across the USA, Canada, and Western Europe. Particularly noteworthy is the heightened demand for developers in Eastern Europe.
According to a report from the US Bureau of Labor Statistics, software development ranks among the most sought-after professions and commands the highest median earnings. These regions are grappling with a pronounced shortage of workforce, with demand far outpacing supply, prompting a significant escalation in service prices by the existing specialists.
The Bureau of Labor Statistics predict that employment growth in the USA will increase by 31% in 2026. About 255,400 IT jobs are expected to be opened up in this span. We will also witness an increase in wages in the IT sphere.
While overall salary growth in the United States is 1.8%, this growth is roughly 3%.
Specialty, education, employers, and geographic areas should all be considered. The best-paying areas are undoubtedly metropolitan areas. The cost of hiring a software developer is among the highest in cities like San Francisco, NYC, Seattle, and San Jose, California.
According to research and market surveys, the global market for outsourcing services will be worth $904.948 billion in total by 2027.
The situation of the global outsourcing market today is comparable to an ecosystem that is buzzing with innovation. It has transcended geographical boundaries and developed into a significant element influencing business growth.
Here, take a look at the revenue estimation for different IT Outsourcing domains. You will know that the total revenue of 2024 for IT outsourcing stands at 512.60 USD. It includes the revenue from web hosting, other IT outsourcing, application outsourcing, and administration outsourcing.
Hire an Experienced Development Team and Slash Costs by 40% on Software Projects
Connect to Hire Dedicated Software Dev Experts
India: India is the most favorite and preferred country for software development outsourcing. It’s known as the “Outsourcing Capital of the World”. It’s popular for its myriad of talents, skilled professionals, and technocrats. India is popularly known for software development, IT services, customer support, and back-office operations.
Philippines: The Philippines continues to draw businesses looking for high-quality, reasonably priced outsourced solutions. It enjoys substantial government support and ties to Western nations culturally. It serves as a hub for call centers, knowledge-based services, and business process outsourcing (BPO).
Southeast Asia: Southeast Asian nations compete fiercely in the outsourcing industry. Thailand, Vietnam, and Malaysia are well known for their services. They are experts in digital marketing, business support operations, and IT outsourcing. They become a distinctive attraction; as a result, attracting both domestic and international clients.
China: When it comes to manufacturing outsourcing, China has become a major player in the outsourcing industry. China has become the go-to location for businesses looking to optimize production and gain access to the largest consumer market in the world. China is renowned for its efficient, cost-effective production capabilities and unparalleled supply chain management expertise.
Eastern Europe: Eastern European countries are not left behind when it comes to the outsourcing industry. With great expertise in software development and IT services, it has become an attraction to many clients worldwide. Ukraine, Poland, and Romania are countries that offer high-quality solutions along with cost advantages.
49.6% of businesses stated that they would raise their outsourcing percentage in the coming year. Only 10.4% of respondents wished to reduce outsourcing, while 40% saw no change. Therefore, it is reasonable to predict that software development outsourcing is a good choice, and its market will expand.
Catchy stats, right? Don't just Read, Start Leveraging Software Outsourcing Benefits for Your Business
Let’s Begin
The tendency of a business to IT outsourcing services completely depends on the industry it operates in. The above graph displays the industries that outsource app development with average frequency. Retail/wholesale businesses come in second at 60%, followed by the financial services sector at 72%. Companies in the healthcare industry are included in the list with a relatively low 31%.
The global ecommerce market is expected to total $6.3 trillion in 2023. That figure is estimated to grow over the next few years, showing that borderless ecommerce is becoming a profitable option for online retailers. By 2024, 21.2% of total retail sales will happen online.
The report from Nasdaq states about 95% of all retail purchases will be made online by 2040.
Supercharge Your Business with Cutting-Edge Software Development and Stay Ahead in The Industry
Connect with Experts
Cloud migration is a complex process. With the ongoing digital transformation and IT outsourcing trends, many organizations are on the verge of adopting cloud-based solutions. Hence, they plan to migrate from on-premises architecture to cloud-based data storage. It will also help organizations to manage their software development lifecycle process more efficiently and seamlessly.
Cloud computing presents a range of advantages, encompassing enhanced data security, swifter data processing capabilities, and the facilitation of process modernization through the seamless integration of diverse business applications.
The global cloud computing market is estimated to witness a healthy growth in the forecast period of 2024-2032 to reach about USD 1873.59 billion by 2032. In addition, (SaaS) market is estimated to be worth approximately 197 billion U.S. dollars and estimated to reach 232 billion U.S. dollars by 2024.
The markets for Platform as a Service (PaaS), Software as a Service (SaaS), and Infrastructure as a Service (IaaS) are experiencing an annual growth rate of 24%. Therefore, the cloud computing market will reach $623.3 billion after two years.
After ChatGPT was released at the end of 2022, an IT outsourcing trend emerged. Giant companies like Microsoft, IBM and Samsung have heavily invested in global AI start-ups. Technology giants frequently use AI-based chatbots and robot automation to provide flawless and affordable customer support.
Alphabet's Q2 2024 earnings call put emphasis on the increasing adoption of generative AI wide the company's cloud and product offerings. Almost around 70% of generative AI startups depend on Google's cloud infrastructure and AI capabilities.
This shows the pull for trailblazing technology among emerging companies looking to craft brand-new services driven by Google Bard and other models. The AI-optimized infrastructure is a launchpad for training and serving generative AI models. 70%+ generative AI unicorns are Google Cloud clients, comprising Cohere, Jasper, Typeface, and many more.
As per the survey conducted by Gallup in 2023,
As per the data from AT&T, the hybrid work model will grow from 42% in 2021 to 81% in 2024.
Start Outsourcing with RadixwebWith over 25 years of experience in the global market, Radixweb has gained profound insights into the hidden pitfalls of software development, becoming a leading outsourcing service provider.Our foundational principles include ensuring that all decisions are in line with clients' business needs and objectives. We emphasize complete client engagement throughout the development process and prioritize transparent collaboration to create a superior software product that meets client requirements.We also recognize the value of Agile methodology as a tool to guide development and promote adherence to flexible principles over bureaucratic processes and standards.Connect with us, and we will demonstrate the essence of transparent and effective communication in outsourcing development.
Dhaval Dave, a Operations Spearhead, and a technology enthusiast at Radixweb. He holds 16 years of experience with proficiency in PHP & frameworks, Node.js, React.js, MongoDB, AWS services, and many other technologies. He is a dynamic leader with exceptional communication skills and has a track record of delivering on-time success for global brands.
Ready to brush up on something new? We've got more to read right this way.