United States IT Outsourcing Market Market Size (2024 - 2029)

United States IT Outsourcing Market Analysis

The United States IT Outsourcing Market is expected to register a CAGR of 2.87% during the forecast period.

The significant drivers for the market growth include a growing emphasis on leveraging the core competencies by outsourcing non-core operations, increasing focus by organizations on IT as a means to gain differentiation by relying on outsourced vendors, and ongoing migration toward the cloud and adoption of virtualized infrastructure. As a result of digital transformation, organizations depend on the performance of creative applications and extensions that IT services can provide.

• Cloud migration and adoption software have led outsourcing customers to divert resources from low-value assets to specialized employees while focusing on more flexible, tailorable, and evolution-friendly solutions. Other trends favoring cloud migration and opting for cloud services have been fueled by a rapid shift to remote work, which led organizations to adjust their infrastructure and software to connect workers.
• As a result, increasing demand for the outsourcing of cloud services displays that enterprises are becoming increasingly comfortable with using platforms from private sources to store their data. 
• Also, businesses operating over the cloud will likely be disturbed by security threats and will look to eradicate all possible threats by outsourcing IT security services. Therefore, the requirement for expert knowledge of the vendor will be required, along with a simple delegation of responsibilities.
• According to the Bureau of Labor Statistics, employment growth in the United States is likely to upsurge by 31% by 2026. Additionally, about 255,400 IT jobs are expected to be opened in this time frame. Therefore, the growing IT job openings are set to contribute to IT outsourcing in the country.
• The fragmented nature of the market and the growing incidence of data breaches are potential market restraints in the United States IT outsourcing landscape. The landscape of service providers is complex and sometimes fragmented for businesses looking to outsource their IT operations. Businesses are also expected to contend with the need to protect sensitive data in an environment where cybersecurity is becoming increasingly risky. Addressing these restraints requires careful selection of outsourcing partners, rigorous security measures, and a proactive data protection and compliance approach.

United States IT Outsourcing Industry Segmentation

The use of external service providers for the effective delivery of IT-enabled business processes, application services, and infrastructure solutions to achieve business results is referred to as IT outsourcing.

The United States IT Outsourcing Market is segmented by service type (application outsourcing, and infrastructure outsourcing), by organization size (SMEs, and large enterprises), by industry (banking, financial services, insurance, IT and telecom, manufacturing, healthcare, government and public sector, retail and e-commerce, energy, utilities, and mining). The market sizes and forecasts are provided in terms of value in USD for all the above segments.