Share of IT outsourcing spendings in India by service 2014

The statistic shows a breakdown of the IT outsourcing spendings in India by service in 2014. The infrastructure outsourcing service segment accounted for 36 percent of the total IT outsourcing spendings in India.

IT outsourcing - additional information

The term “outsourcing” derived from the expression “outside resourcing” refers to the business practice of reassigning the responsibility for a specific job to another company, whether domestic or international. In present times, the term has become well known to the general public in the context of large companies internationally outsourcing (or offshoring) some of their business segments to other areas of the world. Some of the most common reasons for outsourcing are cheaper and/or better labor or taxes lower than in the company’s own country. In the 21st century, one of the most lucrative business areas for outsourcing is represented by IT services, as digital work can easily be performed remotely. According to a recent study, the total contract value of the business process outsourcing (BPO) market worldwide reached 28.5 billion U.S. dollars in 2014, while the information technology outsourcing (ITO) market amounted to 76.1 billion U.S. dollars the same year. Worldwide spending of the IT outsourcing industry in 2013 was an estimated 288 billion U.S. dollars.

One of the most important destinations for North American and European companies’ ITO is India. This is due to a number of factors, such as a high number of computer-literate English-speaking population and low labor costs. As a result, the Indian IT industry has been growing rapidly, reaching a total of 95.2 billion U.S. dollars of revenue in 2012/13 and creating 12.5 million jobs, of which three quarters represent indirect employment. As of 2014, the IT outsourcing market in India was offering a number of different services, such as Infrastructure outsourcing, Network management, desktop management and Application management. The largest segment, the IT infrastructure market, which includes server, storage and networking equipment, is projected to generate revenues amounting to 2.3 billion U.S. dollars by 2018.
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IT outsourcing spending share in India by service in 2014
Share of spendings
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