The global IT outsourcing market is projected at USD 638.65 billion in 2026, up from USD 618.13 billion in 2025, based on Mordor Intelligence data. Large outsourcing contracts hit a record USD 127.4 billion in 2025, per the ISG Index. This post covers market size across five research firms, segment shares, regional growth rates, AI adoption figures, and the talent shortage pushing demand.
IT Outsourcing Industry Statistics – TL;DR
The global IT outsourcing market sits between USD 588.38 billion (Statista) and USD 744.62 billion (broader IT services scope) depending on definition.
Contracts worth USD 5 million or more in annual value reached USD 127.4 billion in 2025, up 18% year over year, per the ISG Index.
Infrastructure outsourcing holds 45.05% of the market, and offshore delivery accounts for 47.15% of sourcing, per Mordor Intelligence.
The US generated USD 218.02 billion in ITO revenue in 2025, the highest of any country, based on Statista data.
A 4.8 million-position cybersecurity talent shortfall and a projected USD 5.5 trillion in skills-crisis losses (IDC) are the strongest demand drivers behind these IT outsourcing industry statistics.
How Big Is the IT Outsourcing Market in 2026?
Mordor Intelligence puts the ITO market at USD 638.65 billion in 2026, growing to USD 752.08 billion by 2031 at a 3.32% CAGR. Statista projects USD 634.18 billion for 2026, rising to USD 806.55 billion by 2030.
Broader definitions run higher. Precedence Research values IT services outsourcing at USD 662.0 billion in 2025, reaching USD 1,345.0 billion by 2034 at an 8.2% CAGR.
Combined with business process outsourcing and shared services, total outsourcing passed USD 1 trillion in 2025, per ISG and industry data cited by CompaniesHistory.com.
| Research Firm | Base Value | Forecast End | CAGR |
|---|---|---|---|
| Statista (ITO) | USD 588.38B (2025) | USD 806.55B (2030) | 6.51% |
| Mordor Intelligence (ITO) | USD 618.13B (2025) | USD 752.08B (2031) | 3.32% |
| Precedence Research | USD 662.0B (2025) | USD 1,345.0B (2034) | 8.2% |
| Grand View Research | USD 744.62B (2024) | USD 1,219.31B (2030) | 8.6% |
| Coherent Market Insights | — | 2033 | 9.3% |
Source: Statista, Mordor Intelligence, Precedence Research, Grand View Research, Coherent Market Insights
The gap between estimates comes down to scope. The 8.6% CAGR figure includes cloud advisory and managed application services; Mordor’s narrower ITO definition covers contractual transfer of infrastructure and application delivery, where AI automation is compressing contract values even as volume grows.
IT Outsourcing Industry Statistics by Segment
Infrastructure outsourcing is the largest service line at 45.05% of the 2025 market, per Mordor Intelligence. BFSI leads verticals at 25.18%, while healthcare grows fastest at a 5.46% CAGR through 2031.
Large enterprises hold 67.25% of spending, and roughly 90% of large corporations outsource at least one IT function, based on industry reports cited by Bachasoftware. SMEs grow faster than the overall market at 3.96% CAGR.
| Segment | 2025 Share / CAGR | Detail |
|---|---|---|
| Infrastructure outsourcing | 45.05% share | Largest service category |
| Offshore sourcing | 47.15% share | Up to 60% labor cost advantage |
| Nearshore sourcing | 5.12% CAGR | Fastest sourcing model, 2026–2031 |
| Large enterprises | 67.25% share | ~90%+ outsource at least one IT function |
| SMEs | 3.96% CAGR | Faster than the 3.32% overall market |
| BFSI vertical | 25.18% share | Largest industry vertical |
| Healthcare vertical | 5.46% CAGR | Fastest-growing vertical, 2026–2031 |
Source: Mordor Intelligence, Bachasoftware
Infrastructure’s 45.05% share and offshore’s 47.15% share track together. Infrastructure work involves standardized tasks with measurable SLAs, which suits offshore delivery. 37% of multinationals are diversifying delivery beyond single-country dependencies.
IT Outsourcing Industry Statistics by Region
North America held 24.12% of global ITO revenue in 2025, per Mordor Intelligence. The US alone generated USD 218.02 billion, the highest national total, based on Statista data.
Asia-Pacific is the fastest-growing region on every firm’s measure, though the rate varies with scope: 3.66% (Mordor), 7.03% (Statista), 8.34% (Precedence), and 11% under the broadest IT services definition.
| Region | Value | Growth |
|---|---|---|
| United States | USD 218.02B (2025) | USD 235.63B by 2031 |
| Asia-Pacific | USD 129.78B–238.3B (2025, by scope) | 3.66%–11% CAGR |
| Europe | ~USD 183.6B (2024) | USD 282.1B by 2030; 7.4% CAGR |
| Latin America | USD 126.3B by 2030 | 10.1% CAGR |
| Eastern Europe | USD 5.34B (2025) | 6.82% CAGR to USD 7.43B |
Source: Statista, Mordor Intelligence, Precedence Research, CompaniesHistory.com
Latin America’s 10.1% CAGR is the highest single-region rate in the dataset. In India, TCS reported USD 2.6 billion in sovereign cloud revenue as of April 2025, 8.6% of its total.
How Is AI Changing IT Outsourcing?
Generative AI cuts Level 1 service desk ticket volume by up to 40% and trims mean time to resolution by 25%, per Mordor Intelligence. Early adopters of agentic AI in IT operations report cost reductions of up to 38%, based on a 2026 Automatic.co report.
Providers claim productivity gains above 30% from proprietary AI delivery platforms. The pattern fits a longer shift where automation replaces traditional labor arbitrage as the core outsourcing economics.
| AI Metric | Figure |
|---|---|
| Level 1 ticket volume reduction (GenAI) | Up to 40% |
| Agentic AI operational cost reduction | Up to 38% |
| Provider productivity gains | Over 30% |
| Mean time to resolution reduction | 25% |
| Philippines IT-BPM firms using AI tools | 67% |
| Large enterprises using RPA by 2025 | 90% (Gartner) |
| AI agent deployers prioritizing IT/cybersecurity | Over 50% (PwC 2025) |
Source: Mordor Intelligence, Automatic.co, Gartner, PwC, CompaniesHistory.com
Cloud-managed services grow at a 3.44% CAGR through 2031 as clients hand over hybrid multicloud orchestration across AWS, Azure, and GCP. The spread of AI services delivered through the cloud is also opening enterprise-grade tooling to smaller buyers.
What Is Driving IT Outsourcing Demand?
Talent scarcity is the main driver. The global cybersecurity shortfall stands at 4.8 million unfilled positions, and 74% of employers report difficulty finding skilled talent.
IDC projects that more than 90% of organizations will feel the IT skills crisis by 2026, with USD 5.5 trillion in related losses. 86.4% of companies intend to integrate digital platforms by 2027, a spending floor that internal teams cannot staff, which is reshaping work and employment trends across the sector.
Corporate moves confirm the trend in both directions. Cognizant signed a USD 1 billion healthcare contract in June 2025 and acquired Belcan for USD 1.3 billion, while Citigroup cut external contractors from 50% to 20% of its IT workforce in March 2025.
The top 10 vendors control about 40% of global spending. One mid-sized bank case study recorded a 40% reduction in security breach risk after outsourcing cybersecurity, and IT outsourcing outcomes data shows a 25% increase in system uptime.
FAQs
How big is the IT outsourcing market in 2026?
The market is projected at USD 638.65 billion in 2026, per Mordor Intelligence. Statista puts it at USD 634.18 billion. Broader IT services outsourcing definitions exceed USD 700 billion.
Which country spends the most on IT outsourcing?
The United States, with USD 218.02 billion in ITO revenue in 2025, based on Statista data. Average US IT outsourcing spend per employee reached USD 156.92.
What is the fastest-growing IT outsourcing segment?
By vertical, healthcare grows fastest at a 5.46% CAGR through 2031. By sourcing model, nearshore leads at 5.12% CAGR. SMEs outpace large enterprises at 3.96% CAGR.
How much of IT outsourcing goes offshore?
Offshore delivery, led by India and the Philippines, held 47.15% of the market in 2025, with labor cost advantages of up to 60% over onshore, per Mordor Intelligence.
Why is IT outsourcing growing?
Talent scarcity: 4.8 million cybersecurity roles are unfilled, 74% of employers struggle to hire skilled staff, and IDC projects USD 5.5 trillion in losses from the IT skills crisis by 2026.
Sources
https://www.statista.com/outlook/tmo/it-services/it-outsourcing/worldwide/
https://www.zealousys.com/blog/it-outsourcing-statistics/
https://www.softura.com/blog/it-outsourcing-statistics-2026/
https://www.pluralsight.com/resources/blog/cybersecurity/whats-causing-cybersecurity-skills-gap
With many years of professional experience within transnational corporations in different industries, Richard Jaimes has had the opportunity to lead people and organizations, investigate future topics, create strategies and innovations, consult senior management and translate insights into business advantages. Richard is also a long time senior consultant with Quantumrun Foresight.
