Figures estimating the market size of IT outsourcing vary depending on how the source defines “outsourcing” and what kind of industries, services, and segments are included. Statista's IT Market Model divides the IT outsourcing industry into IT infrastructure, IT application and IT administration outsourcing, as well as professional payment services. According to the Information Services Group, when focusing on contracts with a total value of more than 25 million U.S. dollars, the annual global revenue from information technology outsourcing is estimated to have amounted to around 62 billion U.S. dollars in 2018. Spending on IT outsourcing is the highest within the Americas region, which accounts for a larger share of total revenue than both the Asia Pacific and EMEA regions combined.
Some subsegments of the industry, such as the data analytics outsourcing market, have experienced rapid growth in recent years and are forecasted to continue this expansion for years to come. Relatively new phenomena such as cloud computing services and software as a service are also growing in popularity and scope as businesses around the world rush to take advantage of technology and software that would otherwise be too expensive.
Overall, the market size for IT outsourcing has begun to shrink as cost-savings are achieved by enterprises moving to less expensive cloud environments. However, many individual segments, such as platform-as-a-service and infrastructure-as-a-service, are projected to grow. Total contract value in the overall “as-a-service” market increased from 3.6 billion U.S. dollars in the second quarter of 2017 to around 6.7 billion just two years later, showcasing the growing importance of these services within the overall market.