IT outsourcing now plays an important role in how companies manage their technology work. Many businesses use outside teams to fill skill gaps, reduce costs, and speed up software development.
They outsource tasks like app building, cloud support, security, and data work to handle growing workloads and stay competitive.
Both small companies and large enterprises depend on outsourcing partners to keep their systems running and support new digital projects. The industry continues to expand across regions like Asia Pacific, North America, and Europe as demand for skilled IT workers increases.
In this guide, you will see key IT outsourcing statistics for 2026, the top regions and industries using outsourcing, and the main benefits and challenges companies face.
Key findings from our IT outsourcing statistics report
- The global IT outsourcing market will reach over 574 billion dollars in 2025 as digital work grows.
- 92% of G2000 companies use IT outsourcing for core tech needs.
- 83% of IT professionals plan to outsource security tasks due to rising cyber risks.
- The Asia Pacific region holds 36% of the global outsourcing market.
- 72% of financial services companies outsource app development.
- 68% of large companies send some IT work overseas to cut project costs.
- 65% of companies say outsourcing helps them focus on core work.
- 23% of small businesses say outsourcing becomes too expensive long-term.
- Between 20% and 25% of outsourcing relationships fail within two years.
- The global IT outsourcing market is expected to reach over 1.2 trillion dollars by 2030.
What is the size of the global outsourcing market in 2026?
- The global outsourcing market is expected to reach 854.6 billion dollars in 2025, driven by rising demand for digital services.
- The IT outsourcing segment will reach 574.4 billion dollars in 2025, making it the largest part of the outsourcing market.
- Statista expects the IT outsourcing market to reach 588.38 billion dollars in 2025 based on current growth trends.
- Mordor Intelligence places the 2025 value even higher at 651.54 billion dollars as companies continue to shift more IT work to outside teams.
- Research and Markets estimates a 2025 value of 854.64 billion dollars for the broader outsourcing sector.
- IT outsourcing revenue is on track to grow from 512.47 billion dollars in 2024 to 574.4 billion dollars in 2025 as digital transformation expands.
- By 2029, the IT outsourcing market volume will reach 290.30 billion dollars, showing strong long-term growth across regions.
How many companies outsource their IT requirement in 2025?
- 92% of G2000 companies use IT outsourcing, which shows that almost all large enterprises depend on external tech support.
- 59% of G2000 companies also use business process outsourcing, but this rate is lower than IT outsourcing usage.
- 90% of companies see cloud computing as a key factor that helps them outsource more work with better speed and control.
- Three in five organizations use outside teams for app development because it helps them build products faster and reduce workload.
- In the financial services sector, 72% of companies outsource app development, which makes it one of the highest outsourcing groups.
- In healthcare, only 31% of companies outsource app development, which shows slower adoption in this sector.
- Nine out of ten high-tech startups outsource work overseas because it helps them save time and scale quickly.
- 68% of large companies now send some work overseas to reduce project costs and access global talent.
- 83% of IT professionals plan to outsource security tasks as cyber risks rise and internal teams face skill gaps.
- 66% of companies in the United States outsource at least some IT tasks to keep operations smooth.
- 24% of US small businesses also use IT outsourcing to access skills they cannot hire internally.
👉 This is also why many companies study how IT staff augmentation works before deciding whether to expand internal teams or hire external specialists.
What are the top industries and regions leading IT outsourcing?
- The Asia Pacific region holds 36% of the global outsourcing market, making it the fastest growing location for IT and business services.
- The United States drives 29% of global outsourcing revenue, which makes North America one of the strongest demand centers.
- EMEA holds 28% of global outsourcing share, with Europe at 23% and the Middle East and Africa at 5%.
- India ranked first on the Global Services Location Index, showing strong talent supply and cost advantage.
- Seven out of the top ten outsourcing countries are in the Asia Pacific region, including India, China, Malaysia, Indonesia, Vietnam, Philippines, and Thailand.
- The Philippines offers up to 70% labor cost savings, making it a major offshoring hub for service and tech work.
- The average salary of a Filipino software developer is 7,174 dollars, which is about ten% of the average US developer salary.
- China adds more than one million new workers to the outsourcing sector every year, which supports strong supply growth.
- 40% of US multinational companies choose countries like India, China, and the Philippines for software development due to strong talent pools.
What benefits do companies gain from IT outsourcing?
- 65% of companies say outsourcing helps them focus on their core work because outside teams handle time-consuming IT tasks.
- Cost reduction remains a major driver, with 63% of companies reporting clear savings when they outsource part of their tech operations.
- 16% of companies say outsourcing gives them better flexibility when they deal with changing project needs.
- 15% of organizations report that outsourcing frees up employee time, which helps teams focus on more important tasks.
- Another 15% mention that outsourcing increases their available resources and helps them handle more projects at once.
- 12% of companies say outsourcing lowers their operating costs, which supports long-term budget planning.
What challenges do companies face with IT outsourcing?
- High cost concerns affect many small businesses, and 23% say outsourcing becomes too expensive for long term use.
- Communication problems appear often, with 21% of companies reporting difficulty in sharing clear instructions with outside teams.
- 14% of businesses face missed deadlines when working with external partners, which slows project delivery.
- 12% say outsourced teams do not always follow instructions well, leading to quality gaps and rework.
- 9% of companies worry about confidentiality issues when they share data with third party providers.
- Low quality work troubles another 9% of businesses, especially when they hire inexperienced or low cost vendors.
- 8% of companies report data breach incidents, which makes security a major concern in outsourced projects.
- 5% list other issues such as time zone gaps or limited support from external teams.
How successful are outsourcing projects in the long run?
- Studies show that between 20 and 25% of outsourcing relationships fail within the first two years, mainly due to unclear planning or weak communication.
- Half of all outsourcing projects in software development fail within five years, which shows the importance of strong management and quality control.
- Many teams rely on outside skills, and 51% of workers with postgraduate degrees perform freelance work in areas like IT, marketing, and consulting.
- Web hosting, administration, and application management appear among the most commonly outsourced services because companies want stable support without handling everything in-house.
👉 A clear software rollout plan helps teams avoid these issues by setting timelines, responsibilities, and testing steps.
How do small businesses use outsourcing?
- 37% of small businesses outsource both accounting and IT services because it helps them reduce workload and avoid hiring full-time staff.
- Digital marketing is also a common area for outsourcing, with 34% of small businesses using outside teams for ads, content, and social media.
- 28% of small businesses outsource development tasks when they need help with websites, apps, or technical fixes.
- Human resources outsourcing is used by 24% of small companies, mainly for payroll, hiring, and compliance support.
- Customer support outsourcing is also common, with 24% relying on external teams to manage calls and chat services.
- Many small businesses focus on efficiency, and 24% say outsourcing improves how fast they complete tasks.
- 18% of small businesses outsource to access expert talent they cannot afford to hire internally.
- 16% say outsourcing gives them more flexibility when workload changes during busy seasons.
- 15% of small companies use outsourcing to free their staff from routine tasks so they can focus on more important work.
- 12% report that outsourcing helps them reduce operating costs and manage their budget more effectively.
How do companies see the role of outsourcing in analytics and digital work?
- 96% of executives say they depend on service providers to build their data and analytics capabilities, which shows strong trust in external experts.
- A large share of outsourcing contract value comes from IT work, and reports show that IT services capture about 72% of the global outsourcing market.
- Analytics support is now a major part of outsourcing, and many companies shift this work to outside teams to improve accuracy and speed.
- Digital work continues to grow across industries, and strong demand for cloud, automation, and data tools drives more companies to use external support partners.
Which industries depend the most on IT outsourcing?
- The banking, financial services, and insurance sector holds 30.29% of global IT outsourcing revenue, making it the largest industry user.
- Healthcare follows with a 23.43% share, showing steady demand for external IT support in patient systems and health platforms.
- The IT and telecom industry makes up 15.77% of outsourcing revenue because these companies often need large development teams.
- Manufacturing accounts for 12.57% of IT outsourcing spend as factories adopt automation and digital tools.
- Retail and wholesale businesses hold 11.43% of the market, driven by e commerce growth and digital POS systems.
- Other industries together make up 6.51% of total IT outsourcing revenue, showing smaller but steady adoption across different sectors.
How do companies in different countries use outsourcing?
- In the United Kingdom, 34% of B2B companies outsource IT support, making it the most common outsourced service in the region.
- Payroll outsourcing is used by 28% of UK businesses, mainly to reduce time spent on monthly salary work.
- Printing services are outsourced by 24% of UK companies because it reduces in house equipment and maintenance costs.
- Accounting services also show a 24% outsourcing rate in the UK, which reflects strong demand for external financial support.
- North America remains a major outsourcing buyer, and the United States alone contributes 29% of global outsourcing revenue.
- The Asia Pacific region leads global outsourcing growth and holds 36% of the worldwide market due to large and skilled talent pools.
- Europe, the Middle East, and Africa together account for 28% of the outsourcing share, with Europe responsible for most of this usage.
- Seven in ten UK B2B companies outsource at least one major business function, which shows broad acceptance of external service providers.
How is the IT outsourcing market expected to grow by 2030?
- The global business process outsourcing market is expected to reach 525 billion dollars by 2030, which shows strong long term demand for external support services.
- The BPO market will grow at more than 9% each year until 2030 as companies continue to shift non core work to outside teams.
- The global IT services outsourcing market is valued at 744.62 billion dollars in 2024 and is expected to reach 1.219 trillion dollars by 2030.
- Growth from 2025 to 2030 is projected at a compound annual rate of 8.6%, driven by digital transformation and cloud adoption.
- Statista expects the IT outsourcing market to reach 806.55 billion dollars by 2030 as companies adopt more remote and hybrid work models.
- Mordor Intelligence forecasts a value of 850.73 billion dollars in 2030 based on rising demand for cybersecurity, AI, and cloud expertise.
- Research and Markets estimates the broader outsourcing sector will reach 1.11 trillion dollars by 2030, showing strong expansion beyond IT alone.
💡 FURTHER ARTICLES:
Final Words
IT outsourcing will continue to grow as companies look for better skills, lower costs, and faster delivery. The data in this report shows strong adoption across many industries and regions. It also shows how outsourcing supports cloud work, software development, analytics, and everyday IT needs.
These statistics make it clear that outsourcing is not only a cost saving method. It is now a core strategy that helps businesses stay flexible and compete in a fast moving digital world. Companies that choose the right partners, set clear goals, and follow strong communication practices will see the best results in the coming years.
Data Sources
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- https://info.syntax.com/ebooks/3/syntax-it-trends-benchmark-report-2021
- https://blog.back4app.com/60-of-organizations-turn-to-outsourcing-for-app-development-should-you-do-the-same-or-keep-it-in-house/
- http://outsourcing-outlook.com/assets/pdf/Deloitte-DOC-Whitepaper_outsourcing-and-shared-services2019-2023.pdf
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- https://www.mordorintelligence.com/industry-reports/it-outsourcing-market
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- https://www.zealousys.com/blog/it-outsourcing-statistics/
- https://www.statista.com/outlook/tmo/it-services/it-outsourcing/worldwide
- https://radixweb.com/blog/global-it-outsourcing-statistics
- https://www.deloitte.com/global/en/issues/work/global-outsourcing-survey.html
- https://www.statista.com/outlook/tmo/it-services/it-outsourcing/united-states
Dhanalakshmi Kadirvelu is a Business Intelligence and Data Analytics expert with a strong focus on software development and data engineering. She creates efficient data models, builds interactive dashboards, and integrates analytics into software systems using Power BI, OBIEE, and SQL. Her work helps development teams use data effectively to create smarter software solutions and improve business performance.
