Outsourced services Market Analysis and Global Forecast 2023-2033

Outsourced services Market Overview

The Outsourced services Market Size is expected to reach USD 626.25 Billion by 2033. The Outsourced services industry size accounted for USD 284.66 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 9.67 % from 2023 to 2033. Outsourced services market refers to the industry where companies contract with external service providers to handle specific business functions or processes. This market encompasses a wide range of services, from customer support to manufacturing, back-office operations, and IT services. Outsourcing allows businesses to reduce costs, increase efficiency, and focus on core operations. It can involve offshoring to countries with lower labor costs, nearshoring to neighboring countries, or onshoring within the same country. The outsourcing market has grown significantly over the years, offering companies the flexibility to access specialized expertise, streamline operations, and adapt to changing business needs

Global Outsourced services Market Synopsis

COVID-19 Impact Analysis

The Outsourced services market was significantly influenced by the COVID-19 pandemic, as global lockdowns and restrictions were implemented to mitigate the virus’s spread. The COVID-19 pandemic has caused supply chain hiccups, which have decreased demand or created shortages in the market for outsourced services. Spending by consumers and businesses has decreased significantly as a result of the travel restrictions and social distancing measures, and this trend is expected to persist for some time. The epidemic has altered end-user trends and tastes, prompting manufacturers, developers, and service providers to implement diverse tactics aimed at stabilizing their businesses.

The major factors that have impacted the growth of Outsourced services are as follows:

Drivers:

Ø  Technological Advancements

The rapid evolution of technology, including cloud computing, automation, artificial intelligence, and data analytics, is reshaping the outsourced services landscape. Businesses are increasingly outsourcing IT services, software development, and digital marketing to leverage cutting-edge technologies.

Restraint:

• Security and Data Privacy Concerns

With the increasing reliance on outsourced services, particularly in areas such as IT and data management, concerns about data security and privacy breaches have become more pronounced. Regulatory requirements such as GDPR (General Data Protection Regulation) and evolving data protection laws place greater scrutiny on how outsourcing vendors handle sensitive information, leading to increased compliance costs and potential liabilities.

Opportunity:

⮚      E-commerce and Retail Outsourcing

The growth of e-commerce and online retail presents opportunities for outsourced services providers to support businesses in areas such as e-commerce platform development, digital marketing, fulfillment services, customer service, and data analytics. Outsourcing enables e-commerce businesses to scale operations, expand market reach, and deliver seamless shopping experiences to customers.

Outsourced services Segment Overview

By Type

Based on Type, the market is segmented based on Professional Outsourcing, Multi-Sourcing, IT Outsourcing, Process-Specific Outsourcing and Business Process Outsourcing, Others. This segmentation reflects the varied needs of businesses seeking external expertise, offering tailored solutions across a spectrum of industries and functions.

By End User

Based on End Users, the market has been divided into the Business Services, Energy, Healthcare And Pharmaceuticals, Retail, Travel And Transport and Others. This segmentation reflects the broad spectrum of industries relying on outsourcing to streamline operations, enhance efficiency, and focus on core competencies, catering to diverse organizational needs and objectives.

Global Outsourced services Market Regional Analysis

Based on region, the global Outsourced services market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Outsourced services market followed by the Asia-Pacific and Europe regions.

Outsourced services North America Market

North America holds a dominant position in the Outsourced services Market. Due to the growing demand for business process outsourcing services from the region’s tech giants, the region is expected to maintain its dominance. It is also expected that the growing demand for cloud computing and the personalization of service offerings to better meet individual needs would drive regional expansion. The European market is expected to grow rapidly, much like the American sector, because of the availability of a skilled workforce, the excellent quality of services, and the efficiency of operations.

Outsourced services Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Outsourced services industry. In the Asia-Pacific region, the outsourced services market is witnessing significant growth driven by factors such as increasing globalization, digitalization, and the need for cost-effective solutions. Countries like India, the Philippines, and China are emerging as key outsourcing destinations due to their skilled workforce and favorable business environments. The market in Asia-Pacific encompasses a wide range of services including IT outsourcing, business process outsourcing (BPO), healthcare outsourcing, and more. Furthermore, industries such as technology, healthcare, finance, and manufacturing are increasingly leveraging outsourcing to enhance their operational efficiency and competitiveness in the global market.

Competitive Landscape

The global Outsourced services market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as Type launches, and strategic alliances.

Prominent Players:

• Aegis
• Microsoft
• Synnex Corporation
• Accenture
• Expert Global Solutions
• Amdocs
• StarTek
• Convergys Corporation
• Wipro Technologies
• TRANSCOM WORLDWIDE

Key Development

July 2021, Wipro Limited has launched FieldX, a cloud-based end-to-end digital service lifecycle automation solution built on ServiceNow’s Now Platform®. Manufacturing companies can improve and expand their after-sales customer support operations using FieldX while spending less money.

 

December 2021, Accenture has finalized the acquisition of Tambourine, a Japanese e-commerce customer experience agency with award-winning cloud-based technology capabilities. For consumer Types and entertainment firms, Tambourine offers integrated commerce services on the Salesforce platform and has a track record of success utilizing Salesforce Commerce Cloud

Scope of the Report

Global Outsourced services Market, by Type

• Professional Outsourcing
• Multi-Sourcing
• IT Outsourcing
• Process-Specific Outsourcing
• Business Process Outsourcing
• Others

Global Outsourced services Market, by Application

• Business Services
• Energy
• Healthcare And Pharmaceuticals
• Retail
• Travel And Transport
• Others

 Global Outsourced services Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $626.25 Billion
CAGR	9.67 % CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Type, End User
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Aegis, Microsoft, Synnex Corporation, Accenture, Expert Global Solutions, Amdocs, StarTek, Convergys Corporation, Wipro Technologies, TRANSCOM WORLDWIDE
Key Market Opportunities	• Emergence of New Technologies
Key Market Drivers	• Technological Advancements

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Outsourced services market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Outsourced services market historical market size for the year 2021, and forecast from 2023 to 2033
• Outsourced services market share analysis at each Type level
• Competitor analysis with detailed insight into its Type segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including Type launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Outsourced services market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, Type offering, recent developments, SWOT analysis, and key strategies.