IT Outsourcing: Know the Score
Outsourcing has been a conventional practice for numerous companies seeking for services for reasonable or reduced costs. Currently IT outsourcing (ITO) tends to offshore partners for qualitative IT services and talents to reach their technical goals all over the globe.
According to the data on statista.com provided by the Information Services Group, the annual global revenue from ITO reaches 60-70 billion US dollars . The global outsourcing market amounted to 88.9 billion U.S. dollars with the largest share from Europe, Middle East and Africa, followed by the Americas .
Since 2008 the spending on IT services has constantly been growing and driving forward, having reached 987 billion U.S. dollars. The increase on spending is predicted to continue during the forthcoming years . Thus, IT services spending is growing at a rate of 5.5%. Two thirds of the global market for outsourced services with the equivalent of 64.3 billion US dollars was devoted to ITO and was predicted to increase during the forthcoming years. Healthcare industry has been the leader on the global market for it .
The market size for ITO might shrink according to the forecasts over the next few years as enterprises are moving to cheaper cloud environments. Nevertheless, some individual segments and markets such as cloud computing with plethora of technologies and IT healthcare outsourcing tend to grow due to business needs .
Understanding the fact, the IT industry is changing, the tendencies where, why and how to outsource for businesses will be changing, either.
1. Information technology (IT) services spending forecast worldwide from 2008 to 2019 (in billion U.S. dollars) / Resource: https://www.statista.com/statistics/203291/global-it-services-spending-forecast/
2. Share of IT leaders worldwide who expect outsourcing/offshoring spending increases, from 2005 to 2018 / Resource: https://www.statista.com/statistics/662964/worldwide-cio-survey-offshoring-and-outsourcing-plans/
3. IT Outsourcing Industry - Statistics & Facts / Resource: https://www.statista.com/topics/1900/it-outsourcing/
Written by Anna Kotliarova, marketing specialist