Market Forecast By Service Model (Software as a Service (SaaS), Platform as a Service (PaaS), Infrastructure as a Service (IaaS)), By Organization Size (Small and Medium-sized Enterprises, Large Enterprises), By End User (BFSI, Healthcare, Media and Telecommunications, Retail and E-commerce, Manufacturing, Others) And Competitive Landscape
| Product Code: ETC6182649 | Publication Date: Sep 2024 | Updated Date: Nov 2025 | Product Type: Market Research Report | |
| Publisher: 6Wresearch | Author: Bhawna Singh | No. of Pages: 75 | No. of Figures: 35 | No. of Tables: 20 |
According to 6Wresearch internal database and industry insights, the Australia IT Outsourcing Market is projected to grow at a compound annual growth rate (CAGR) of 9.1% during the forecast period (2025-2031).
Below is the evaluation of year-wise growth rate along with key growth drivers:
|
Year |
CAGR (%) |
Growth Drivers |
|
2020 |
4.1% |
Shift toward cloud adoption among SMEs and rising cybersecurity concerns. |
|
2021 |
5.2% |
Increased use of SaaS and remote service delivery. |
|
2022 |
6.3% |
Growing investment in digital modernization across BFSI and healthcare. |
|
2023 |
7.2% |
Rise in hybrid cloud deployment and automation tools. |
|
2024 |
7.9% |
Expansion of IaaS and PaaS platforms due to rising enterprise data needs. |
The Australia IT Outsourcing Market report thoroughly covers the market by service model, organization size, and end user industries. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders to devise and align their market strategies according to the current and future market dynamics.
| Report Name | Australia IT Outsourcing Market |
| Forecast Period | 2025-2031 |
| CAGR | 9.1% |
| Growing Sector | BFSI and Healthcare |
Australia IT Outsourcing Market is projected to exhibit strong growth over the coming years owing to massive digital transformation, increased cloud adoption, and surging demand for remote IT services among enterprises. Apart from this, the development of data centers, integration of artificial intelligence into IT operations, and accelerating digital initiatives across BFSI, healthcare, and telecommunications sectors are further boosting the need for managed IT outsourcing services. Further, the country’s expanding startup ecosystem and the country’s focus on automation and cloud-native solutions contribute to the consistent rise in outsourcing demand.
Below mentioned are some prominent drivers and their influence to the market dynamics:
| Drivers | Primary Segments Affected | Why it matters (evidence) |
| Rising Cloud Adoption | SaaS, PaaS, IaaS | Enterprises are increasingly migrating workloads to cloud platforms, fueling the need for outsourced IT management. |
| Digital Transformation Programs | Large & SMEs | Government and industry-wide modernization projects drive outsourcing across multiple sectors. |
| Cybersecurity Concerns | BFSI, Healthcare | Increasing cyber threats accelerate demand for outsourced security and managed IT services. |
| Cost Optimization Initiatives | Large Enterprises | Outsourcing helps diminish operational expenses related to IT infrastructure and labor. |
| Workforce Skills Shortage | All End Users | Limited skilled IT professionals in emerging technologies increases reliance on external service providers. |
The Australia IT Outsourcing Market is projected to grow at the CAGR of 9.1% during the forecast period of 2025-2031. Due to widespread digital transformation initiatives, increasing cloud integration, and strong enterprise demand for scalable, secure, and cost-effective IT services, the growth of Australia IT Outsourcing Industry is expected to accomplish enormous growth during the forecast period. In addition, the growing need for automation, cybersecurity modernization, and remote management capabilities further accelerates outsourcing reliance across industries.
Below mentioned are some major restraints and their influence to the market dynamics:
| Restraints | Primary Segments Affected | What this means (evidence) |
| Data Sovereignty Regulations | All Cloud Models | Strict compliance requirements increase complexities in outsourcing sensitive IT functions. |
| Dependence on External Vendors | Large Enterprises | Heavy reliance may lead to operational risks during vendor downtimes. |
| Rising Outsourcing Costs | SMEs | Increasing demand for skilled IT services elevates outsourcing costs. |
| Integration Complexity | BFSI, Manufacturing | Migration to new cloud platforms often requires major technical adjustments. |
| Limited Local Talent Availability | PaaS, IaaS | Shortage of specialized cloud professionals limits innovation scalability. |
Despite of upward trajectory, the IT Outsourcing Market in Australia faces challenges such as concerns over data privacy, stringent IT compliance norms, and rising service fees associated with advanced cloud offerings. Additionally, frequent technology upgrades require enterprises to continuously retrain employees, adding operational pressure. Moreover, limited availability of skilled cloud architects and security specialists increases dependence on foreign outsourcing providers.
Significant trends that are influencing the landscape of the Australia IT Outsourcing Industry include the following:
Some prominent investment opportunities in the Australia IT Outsourcing Market include:
Some leading players operating in the Australia IT Outsourcing Industry include:
| Company Name | Accenture Australia |
| Headquarters | Sydney, Australia |
| Established | 1989 |
| Website | Click Here |
Accenture provides cloud transformation, managed IT services, digital consulting, and AI-driven outsourcing solutions across major industries.
| Company Name | IBM Australia |
| Headquarters | Sydney, Australia |
| Established | 1932 |
| Website | Click Here |
IBM delivers cloud infrastructure, cybersecurity outsourcing, and data analytics services with strong hybrid cloud capabilities.
| Company Name | Infosys Australia |
| Headquarters | 1981 |
| Established | Melbourne, Australia |
| Website | Click Here |
Infosys provides end-to-end IT outsourcing, including cloud migration, application management, and digital operations.
| Company Name | Tata Consultancy Services (TCS) Australia |
| Headquarters | Sydney, Australia |
| Established | 1968 |
| Website | Click Here |
TCS offers IT outsourcing, enterprise automation, data services, and large-scale cloud deployment solutions.
| Company Name | DXC Technology Australia |
| Headquarters | Sydney, Australia |
| Established | 2017 |
| Website | Click Here |
DXC provides infrastructure outsourcing, managed cloud operations, and digital modernization services across government and private sectors.
According to Australian government data, the Digital Transformation Agency (DTA) launched programs encouraging federal agencies to streamline IT infrastructure through outsourced cloud solutions. Moreover, the Australian Cyber Security Strategy promotes outsourcing SOC services to strengthen nationwide cyber resilience. The government’s Cloud Marketplace Framework also enables public institutions to procure SaaS, PaaS, and IaaS solutions through certified outsourcing vendors.
In the future years, the Australia IT Outsourcing Market is poised to expand, driven by accelerated cloud adoption and growing demand for cybersecurity outsourcing. On the other hand, the expansion in automation technologies, high investment in AI-based services, and increasing IT infrastructure needs will significantly contribute to Australia IT Outsourcing Market Growth. Further, rapid growth in digital banking, telehealth systems, and e-commerce infrastructures will increase outsourcing reliance across industries.
The report offers a comprehensive study of the subsequent market segments and their leading categories.
The SaaS segment holds the largest market share in the Australia IT Outsourcing Market due to increasing enterprise demand for scalable software delivery, reduced maintenance overheads, and quick implementation cycles across BFSI, healthcare, and retail sectors.
According to Mohit, Senior Research Analyst, 6Wresearch, Large Enterprises segment is expected to grow in the coming years owing to their extensive IT infrastructure, higher spending capacity, and increasing dependence on outsourced IT management to support large-scale digital transformation programs.
The BFSI segment is projected to lead the Australia IT Outsourcing Market Share due to high adoption of secure cloud services, fraud prevention systems, and digital transaction infrastructure requiring continuous outsourced IT support.
The market report provides a detailed analysis of the following market segments:
| 1 Executive Summary |
| 2 Introduction |
| 2.1 Key Highlights of the Report |
| 2.2 Report Description |
| 2.3 Market Scope & Segmentation |
| 2.4 Research Methodology |
| 2.5 Assumptions |
| 3 Australia IT Outsourcing Market Overview |
| 3.1 Australia Country Macro Economic Indicators |
| 3.2 Australia IT Outsourcing Market Revenues & Volume, 2021 & 2031F |
| 3.3 Australia IT Outsourcing Market - Industry Life Cycle |
| 3.4 Australia IT Outsourcing Market - Porter's Five Forces |
| 3.5 Australia IT Outsourcing Market Revenues & Volume Share, By Service Model, 2021 & 2031F |
| 3.6 Australia IT Outsourcing Market Revenues & Volume Share, By Organization Size, 2021 & 2031F |
| 3.7 Australia IT Outsourcing Market Revenues & Volume Share, By End User, 2021 & 2031F |
| 4 Australia IT Outsourcing Market Dynamics |
| 4.1 Impact Analysis |
| 4.2 Market Drivers |
| 4.2.1 Increasing demand for cost-effective IT solutions |
| 4.2.2 Growing trend of digital transformation among Australian businesses |
| 4.2.3 Shortage of in-house IT expertise leading to outsourcing opportunities |
| 4.3 Market Restraints |
| 4.3.1 Concerns over data security and privacy in outsourcing IT services |
| 4.3.2 Fluctuating exchange rates impacting outsourcing costs |
| 4.3.3 Potential challenges in communication and coordination with offshore IT service providers |
| 5 Australia IT Outsourcing Market Trends |
| 6 Australia IT Outsourcing Market, By Types |
| 6.1 Australia IT Outsourcing Market, By Service Model |
| 6.1.1 Overview and Analysis |
| 6.1.2 Australia IT Outsourcing Market Revenues & Volume, By Service Model, 2021- 2031F |
| 6.1.3 Australia IT Outsourcing Market Revenues & Volume, By Software as a Service (SaaS), 2021- 2031F |
| 6.1.4 Australia IT Outsourcing Market Revenues & Volume, By Platform as a Service (PaaS), 2021- 2031F |
| 6.1.5 Australia IT Outsourcing Market Revenues & Volume, By Infrastructure as a Service (IaaS), 2021- 2031F |
| 6.2 Australia IT Outsourcing Market, By Organization Size |
| 6.2.1 Overview and Analysis |
| 6.2.2 Australia IT Outsourcing Market Revenues & Volume, By Small and Medium-sized Enterprises, 2021- 2031F |
| 6.2.3 Australia IT Outsourcing Market Revenues & Volume, By Large Enterprises, 2021- 2031F |
| 6.3 Australia IT Outsourcing Market, By End User |
| 6.3.1 Overview and Analysis |
| 6.3.2 Australia IT Outsourcing Market Revenues & Volume, By BFSI, 2021- 2031F |
| 6.3.3 Australia IT Outsourcing Market Revenues & Volume, By Healthcare, 2021- 2031F |
| 6.3.4 Australia IT Outsourcing Market Revenues & Volume, By Media and Telecommunications, 2021- 2031F |
| 6.3.5 Australia IT Outsourcing Market Revenues & Volume, By Retail and E-commerce, 2021- 2031F |
| 6.3.6 Australia IT Outsourcing Market Revenues & Volume, By Manufacturing, 2021- 2031F |
| 6.3.7 Australia IT Outsourcing Market Revenues & Volume, By Others, 2021- 2031F |
| 7 Australia IT Outsourcing Market Import-Export Trade Statistics |
| 7.1 Australia IT Outsourcing Market Export to Major Countries |
| 7.2 Australia IT Outsourcing Market Imports from Major Countries |
| 8 Australia IT Outsourcing Market Key Performance Indicators |
| 8.1 Percentage increase in the number of Australian companies outsourcing IT services |
| 8.2 Average cost savings achieved through IT outsourcing compared to in-house solutions |
| 8.3 Rate of successful implementation and delivery of outsourced IT projects |
| 9 Australia IT Outsourcing Market - Opportunity Assessment |
| 9.1 Australia IT Outsourcing Market Opportunity Assessment, By Service Model, 2021 & 2031F |
| 9.2 Australia IT Outsourcing Market Opportunity Assessment, By Organization Size, 2021 & 2031F |
| 9.3 Australia IT Outsourcing Market Opportunity Assessment, By End User, 2021 & 2031F |
| 10 Australia IT Outsourcing Market - Competitive Landscape |
| 10.1 Australia IT Outsourcing Market Revenue Share, By Companies, 2024 |
| 10.2 Australia IT Outsourcing Market Competitive Benchmarking, By Operating and Technical Parameters |
| 11 Company Profiles |
| 12 Recommendations |
| 13 Disclaimer |