IT Outsourcing - Australia

  • Australia
  • Revenue in the IT Outsourcing market is projected to reach US$14.49bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 10.99%, resulting in a market volume of US$21.99bn by 2028.
  • The average Spend per Employee in the IT Outsourcing market is projected to reach US$1.04k in 2024.
  • In global comparison, most revenue will be generated in the United States (US$185.50bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Region comparison

Analyst Opinion

Australia, known for its beautiful beaches, diverse wildlife, and unique culture, has been experiencing a steady growth in its IT Outsourcing market.

Customer preferences:
As businesses worldwide continue to focus on their core competencies, outsourcing IT services has become a popular option. Australian companies are no exception, with many opting to outsource their IT services to reduce costs, improve efficiency, and access specialized skills. Additionally, the rise of cloud computing and the need for cybersecurity has led to an increase in demand for IT outsourcing services.

Trends in the market:
One trend that has been observed in the Australian IT outsourcing market is the shift towards nearshoring. Australian companies are increasingly outsourcing their IT services to countries such as New Zealand, the Philippines, and Indonesia, which offer similar time zones and cultural similarities. This shift towards nearshoring has been driven by the need for better communication and collaboration between the outsourcing company and the service provider.Another trend in the market is the rise of automation and artificial intelligence (AI). As the demand for IT services continues to grow, companies are turning to automation and AI to improve efficiency and reduce costs. This has led to a shift in the types of IT services being outsourced, with more companies opting to outsource tasks such as data entry, customer service, and software development.

Local special circumstances:
Australia's unique geographical location and small population have led to a shortage of skilled IT professionals. This has made outsourcing IT services an attractive option for many Australian companies. Additionally, the country's strict data privacy laws have made it an attractive location for outsourcing services such as cybersecurity and data management.

Underlying macroeconomic factors:
Australia's strong economy and stable political environment have made it an attractive location for outsourcing IT services. The country's proximity to Asia has also made it an attractive location for outsourcing services to countries such as China and India. Additionally, the rise of cloud computing and the need for cybersecurity has led to an increase in demand for IT outsourcing services in Australia.In conclusion, the Australian IT outsourcing market is experiencing steady growth, driven by the need for cost reduction, improved efficiency, and access to specialized skills. The shift towards nearshoring, automation, and AI is expected to continue, as companies look for ways to improve communication, collaboration, and efficiency. The country's unique geographical location, strict data privacy laws, strong economy, and stable political environment make it an attractive location for outsourcing IT services.


Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.


In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.


  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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