IT Outsourcing


IT Outsourcing Market Research Reports Analysis and Trends

IT Outsourcing is a practice of seeking resources or subcontracting outside of an organizational structure for all or part of Information Technology function. IT Outsourcing is used by an organization for various functions such as infrastructure, software development, maintenance and support.

Outsourcing is nothing but contracting out a business process, for instance, a company may outsource its IT management because it is cheaper to contract a third party rather than building its own in-house IT management team. Or else a company may outsource all of its data storage needs because it does not want to buy and maintain its own data storage devices.

Jobs functions such as telemarketing i.e. call centres, payroll and data entry as some of the outsourcing categories. The companies performing these job functions are well focused and the processes involved in this work are quite streamlined so there is little management needed due to quality control procedures in place.

Need for IT Outsourcing

Due to the economic downturn, companies are looking for ways to save money and increase their profits. Many large companies will mostly outsource certain jobs to companies who specialize in this service. It also reduces the need to hire and train specialized staff, brings in fresh engineering expertise, and reduces capital and operating expenses. For example, two organizations may enter into a contractual agreement involving an exchange of services and payments.

Industry Overview

  • As per the reports, the global software industry is becoming more competitive. A move within US companies to cut overhead costs is also driving growth in the IT outsourcing sector.
  • Due to cloud computing innovation in the global IT outsourcing industry, it continues to grow, which makes the market more accessible for smaller sized outsourcing outfits.
  • US and EU companies outsourcing to the Philippines, and India and Japanese companies are the major business in the global IT outsourcing market.  

IT Outsourcing Industry Current Trends

As per the reports given by SBWire, forecast has been made that the Global Desktop Outsourcing market will grow at a CAGR of 4.66 percent over the period 2011-2015. The need to achieve a reduction in operational time and cost is one of the key factors contributing to this market growth. The Global Desktop Outsourcing market is also witnessing increased impact of desktop virtualization.

Major IT Outsourcing Industry Players

Some of the major IT outsourcing industry players are IBM Global Services, EDS, Computer Science Corp i.e. CSC, Hewlett Packard i.e. HP, Infosys, Wipro, and Tata Consultancy Services i.e. TCS.

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