How Big Is the IT Outsourcing Market | Growth, Size & Forecast 2031

Q: What is the market size of the IT outsourcing market in 2025 and 2031?

The IT outsourcing market is estimated to reach approximately USD 595 billion in 2025 and is projected to surpass USD 800 billion by 2031.

Q: What is the CAGR of the IT outsourcing market between 2025 and 2031?

The IT outsourcing market is expected to grow at a CAGR of 4.70% during the forecast period.

Q: What are the key trends in the IT outsourcing market?

Key trends include the adoption of cloud-based outsourcing, AI integration, demand for cybersecurity services, and flexible outsourcing models.

Q: What are the main drivers of the IT outsourcing market?

The IT outsourcing market is driven by the need for cost efficiency, digital transformation, access to global expertise, and growing emphasis on core business optimization.

Q: How does 6W market outlook report help businesses in making decisions?

6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

Q: Do you also provide customisation in the market study?

Yes, we provide customisation as per your requirements. To learn more, feel free to contact us on sales@6wresearch.com

Code: MTA7045

Publication Date: Aug 2025

What is the IT outsourcing Market Size?

According to 6Wresearch internal database and industry insights, the Global IT Outsourcing Market was valued at USD 580 billion in 2024 and is anticipated to exceed USD 800 billion by 2031, registering a steady CAGR of 4.70% during the forecast period.

The IT outsourcing market expansion is fuelled by the increasing need for cost optimization, rising digital transformation initiatives, and widespread adoption of cloud-based infrastructure. Businesses are outsourcing IT functions to access global talent, enhance service quality, and focus on core operations. Emerging technologies like AI, cybersecurity services, and remote work models are also contributing significantly to the growth of IT outsourcing worldwide.

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Major Growth Factors of the IT Outsourcing Market

Rising demand for cost-effective IT solutions
Increasing cloud adoption across enterprises
Growing focus on core business functions
Expansion of remote and hybrid work models
Access to global IT expertise and resources
Accelerated digital transformation initiatives
Rising demand for cybersecurity and data management
Increased demand for scalable and flexible IT services

IT Outsourcing Market Trends

The IT outsourcing market is witnessing a surge in demand for cloud-based services, automation, and managed security services. Enterprises are increasingly outsourcing to specialized vendors for functions such as application development, IT infrastructure, and helpdesk operations. A strong preference for multi-vendor and hybrid outsourcing models is emerging, alongside the integration of AI and machine learning into outsourced IT services.

Emerging Developments in the IT Outsourcing Market

The IT outsourcing market is evolving with growing investments in nearshoring and strategic partnerships to mitigate geopolitical risks. Vendors are expanding their service offerings with AI-driven automation, DevOps, and analytics capabilities. There is also an increased focus on sustainability and compliance in outsourcing contracts, alongside greater demand for outcome-based pricing models.