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Global Outsourcing Market to Hit $1.2T

The global outsourcing sector has seen consistent growth over the years. In 2016, the worldwide expenditure on outsourcing and shared services was USD 606.9 billion. By 2023, this figure is projected to rise to USD 971.2 billion. 1

From 2000 to 2019, the market value of outsourced services more than doubled, increasing from $45.6 trillion to $92.5 trillion. Despite global challenges such as the COVID-19 pandemic and geopolitical tensions, the outsourcing sector is expected to grow by USD 75.89 trillion between 2023 and 2027, with a compound annual growth rate (CAGR) of 6.5% 1

Administration Outsourcing

The market value of administration outsourcing is expected to reach $60.21 billion in 2023. With a projected annual growth rate (CAGR) of 5.29% between 2023 and 2027, the market value will reach USD 74.00 billion by 2027. The average spend for an employee in this segment is expected to be $17.28 in 2023. Most of the revenue will be generated in the USA in 2023, with USD 21,730.00 million. 1

Outsourcing in the Pharmaceutical Industry

The global trend towards outsourcing is also evident in the pharmaceutical industry. While in 2014 the outsourced market share was still 33.7%, an increase to 49.3% is expected for 2023. 1

IT Outsourcing

According to industry projections, the global IT outsourcing market is expected to generate €420 trillion in revenue by 2023, exhibiting a compound annual growth rate (CAGR) of 7.49%. This forecast indicates that the sector is poised to continue its growth trajectory. 5

In 2022, 49.6% of companies intended to increase their outsourcing share. 5

The sector a company is in influences the tendency to outsource IT functions. Across industries, an average of almost 60% of organizations outsource app development. According to recent research, the financial services sector has experienced a significant increase of 72%, followed by retail and wholesale companies at 60%. Companies operating in the healthcare sector, however, have reported a relatively modest increase of 31%. These findings suggest that the financial services and retail industries are currently experiencing a period of growth, while the healthcare industry may be facing challenges that are limiting its growth potential. 5

Future Projections

Between 2023 and 2030, the global outsourcing market is expected to grow by a robust CAGR of 9.4%, taking its value to $525.2 billion. 7

For example, Statista forecasts that the IT outsourcing segment alone will be worth $587.3 billion by 2027 from $430.5 billion in 2023. 7

Despite the evolving nature of globalization, especially with regard to a new focus on supply chain security and geopolitical risks, the benefits of outsourcing mean the sector is expected to keep proliferating until the end of the decade. 7

The final analysis shows that the global outsourcing sector is on a steady growth path, driven by the increasing adoption of outsourcing strategies across various industries. The IT outsourcing segment, in particular, is expected to see significant growth in the coming years.