IT Outsourcing Trends in 2025: Key Statistics & Forecasts

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January 26, 2024

Are you looking to gain a competitive edge in today's rapidly evolving business landscape? The IT outsourcing industry continues to transform, driven by technological advancements and the constant need for businesses to remain agile. In this article, BHSOFT will help you explore key IT outsourcing trends, statistics, and forecasts for 2025, providing a comprehensive overview for organizations aiming to leverage outsourcing effectively.


IT Outsourcing Trends: General Outsourcing Statistics

Before diving into the specifics of IT outsourcing trends, it's important to understand the broader context of the overall outsourcing market. These general outsourcing statistics provide valuable insights into the factors driving adoption across various industries, many of which directly influence IT outsourcing decisions.

The Outsourcing Services Market size is estimated at USD 1.09 trillion in 2025
Source: Mordor Intelligence
The statistic highlights the substantial and growing reliance of businesses on external providers. This significant figure underscores the increasing trend of companies outsourcing various functions, from IT and customer service to finance and HR, to achieve cost savings, access specialized skills, and enhance operational flexibility.

Improved access to talent occupied 42% in primary drivers for adoption of third-party outsourced services

Source: Deloitte
Over 40% of companies cite improved access to talent as a primary driver for outsourcing highlights a key trend: the strategic use of external providers to bridge skill gaps. This indicates businesses are increasingly turning to outsourcing not just for cost savings, but to acquire specialized expertise and talent they may lack internally, particularly in rapidly evolving fields like IT.

Over 40% of companies not currently outsourcing plan to consider it in the next year.
Source: Wipfli
This statistic signals a significant shift in business strategy and reinforces existing outsourcing trends. It suggests a growing recognition of outsourcing's potential benefits, indicating that even companies traditionally relying on in-house operations are now actively exploring external partnerships to improve efficiency and competitiveness.

59% of companies outsource to cut costs.
Source: TeamStage
The fact that 59% of companies outsource to cut costs underscores the enduring importance of cost reduction as a primary driver within outsourcing trends. By outsourcing, companies save on infrastructure, labor, and overhead. 

IT Outsourcing Trends: Industry Statistics on Outsourcing

Key Trends in IT Outsourcing Statistics

Now, let's turn our attention to the specific statistics shaping the IT outsourcing landscape. These figures provide concrete evidence of the growth, trends, and key areas of focus within the IT outsourcing market.

In 2025, IT outsourcing revenue is expected to surpass $190 billion globally. 
Source: Statista
The projection of global IT outsourcing revenue underscores the significant and growing reliance of businesses worldwide on external IT providers. This substantial figure reflects a strong market demand for outsourced IT services, driven by factors like cost optimization, access to specialized skills, and the need to manage increasingly complex technological landscapes.

The Global Software Outsourcing Market is expected to grow from $585.5 billion in 2024 to $897.9 billion by 2031.
Source: Verified Market Research
The projected growth of the global software outsourcing market demonstrates a robust and expanding demand for outsourced software development. This substantial increase reflects businesses' increasing reliance on external teams for software creation, maintenance, and innovation, driven by factors like cost-effectiveness, access to specialized talent, and faster time-to-market.

The offshore software development market was valued at $122 billion in 2024 and is expected to reach $283 billion by 2031.
Source: Verified Market Research
The projected growth of the offshore software development market signifies a strong and increasing preference for utilizing geographically distant teams for software development. This substantial expansion reflects the appeal of cost savings, access to a global talent pool, and potential time zone advantages offered by offshore outsourcing.

Companies are considering outsourcing top tech roles, with 34% likely to outsource CTO, 30% CISO, and 30% CIO positions within the next year.
Source: Wipfli
The fact that a significant percentage of companies are considering outsourcing top tech roles demonstrates a growing IT outsourcing trend toward strategic leadership. This indicates a shift beyond simply outsourcing tactical IT tasks to leveraging external expertise for high-level technology strategy, security oversight, and IT management.

IT Outsourcing Trends: Business Process Outsourcing Statistics

Business Process Outsourcing (BPO) continues to be a crucial strategy for businesses looking to streamline non-core operational tasks. While distinct from IT outsourcing, BPO often relies on IT infrastructure and services. Here are some noteworthy statistics highlighting BPO outsourcing trends:

In 2025, it is projected that the revenue in the Business Process Outsourcing market will reach a staggering $152.80 billion.
Source: Statista
The projected revenue in the BPO market indicates a strong and growing demand for outsourced operational services. This substantial figure reflects businesses' increasing reliance on external providers to handle non-core functions, seeking greater efficiency, cost savings, and access to specialized skills.

IT Infrastructure Services (77%), Cybersecurity (77%), and Innovative Technology (75%) are the most frequent BPO services.

Source: Deloitte
The fact that IIT Infrastructure Services, Cybersecurity and Innovative Technology are the most frequently outsourced business processes highlights where companies find outsourcing most beneficial. These areas often require specialized skills, significant resources, or strict regulatory compliance, making them prime candidates for outsourcing to improve efficiency and reduce overhead.

The US BPO Services market has grown at a 1.7% annual rate over the past five years, reaching $73.0 billion in revenue in 2024.
Source: Ibisworld
The statistic demonstrates a stable demand for outsourced business operations. This steady expansion indicates that US businesses continue to find value in outsourcing for streamlining processes, managing costs, and accessing specialized expertise.

The average spend per employee in the BPO market is estimated to reach $0.88k in 2025.
Source: Statista
The estimated average spend per employee emphasizes the cost-effectiveness of this strategy. It suggests businesses find BPO a valuable investment, allowing access to skilled labor and improved efficiency without the high overhead of direct employment.

IT Outsourcing Trends: Global Statistics

Key U.S. IT Outsourcing Trends

The United States plays a dominant role in the global outsourcing market, significantly influencing the IT outsourcing trend worldwide. Here's a look at key statistics related to IT outsourcing in the US:

30% of the US-based companies outsource at least one function, and this IT outsourcing trend is not declining.
Source: SumatoSoft
That 30% of US companies outsource at least one function demonstrates the established and ongoing nature of outsourcing as a business practice. The fact that this IT outsourcing trend is not declining suggests a continued reliance on external providers for various business needs, including IT, to improve efficiency and competitiveness.

More than 84% of outsourcing deals come from the US.

Source: TeamStage
The statistic that the majority of outsourcing deals originate from the US underscores the country's dominant role as a consumer of outsourced services. This highlights the significant influence of US businesses on global outsourcing trends, including IT outsourcing, as they drive demand for external providers worldwide.

Every year, US businesses outsource about 300,000 jobs.
Source: TeamStage
The data highlights the substantial impact of this practice on the labor market. This figure reflects a continued reliance on outsourcing to manage costs, access global talent pools, and streamline operations, indicating a significant trend in how US companies structure their workforce.

The United States is experiencing a growing demand for IT outsourcing services, as businesses seek to streamline operations and reduce costs.
Source: Satista
The US has a rising demand for IT outsourcing services. Businesses prioritize cost-effectiveness and operational efficiency. This demand reinforces the critical role of IT outsourcing in enabling digital transformation and innovation. This demand directly influences IT outsourcing trends in the US and globally.

IT Outsourcing Trends in Asia

Asia remains a dominant force in the global outsourcing market, significantly shaping the IT outsourcing trend due to its large skilled workforce and cost-effective solutions.

The IT Outsourcing market in Asia is projected to reach US$126.90 billion by the year 2025
Source: Statista
The data reflects the region's significant growth as a global outsourcing hub. This substantial figure indicates strong demand for IT services within Asia, driven by factors such as cost-effectiveness, a large pool of skilled labor, and a rapidly developing technological infrastructure. This growth significantly contributes to the overall IT outsourcing trend.

India is still the top global outsourcing destination while Malaysia, Vietnam are emerging

Source: TeamStage
India's continued reign as the top global outsourcing destination, alongside the emergence of other developing countries, highlights a dynamic shift in the outsourcing landscape. While India maintains its established position due to its large talent pool and mature industry, the rise of Malaysia and Vietnam indicates businesses are increasingly seeking diverse options for cost-effective and skilled outsourcing partners in Southeast Asia.

9% of the Philippines’ GDP comes from business process outsourcing 
Source: Matchboard
Business Process Outsourcing contributes 9% of the Philippines' GDP. This emphasizes the sector's economic importance. The country excels in customer service and back-office operations, making it a preferred outsourcing destination. These BPO activities often involve IT functions, influencing IT outsourcing trends.

Over 1M new employees join the services outsourcing industry in China each year
Source: Statista
China's services outsourcing industry sees over one million new employees each year. This highlights its rapid growth and rising demand for IT outsourcing. The country's focus on technology and innovation makes it a key player in global IT outsourcing trends.

IT Outsourcing Trends in Europe

Europe's outsourcing market is experiencing steady growth, driven by digital transformation and a focus on specialized skills. These trends contribute to the overall IT outsourcing trend on a global scale.

7 in 10 British B2B companies outsource key business operations
Source: YouGov
This statistic reveals a very high adoption rate of outsourcing among British B2B companies. It means that 70% of these companies rely on external providers to handle at least some of their essential business functions. This encompasses a wide range of services, from IT and finance to marketing and customer support. This widespread adoption of outsourcing in the UK contributes to the overall growth of IT outsourcing trends, as many of these outsourced functions rely on IT infrastructure and services. 

In 2024, 84% of companies in Poland outsourced data security to external providers, up from the previous year.
Source: Statista
This data represents a very high adoption rate of this specific IT outsourcing trend. It indicates that Polish businesses are increasingly recognizing the critical importance of specialized cybersecurity expertise and the benefits of entrusting this function to external providers. This substantial increase from the previous year further emphasizes the growing trend towards outsourcing data security in Poland.

Eastern Europe, particularly Ukraine and Poland, is emerging as a significant hub for IT outsourcing, seeing rapid growth.

Source: Statista
From 2021, Poland was regarded as a nearshore and offshore haven for software development outsourcing and clinched first place from Ukraine. Notably, Poland is ranked third globally for software development services. The region's growth is driven by its highly skilled workforce, competitive pricing, and strong focus on technological innovation. 

In 2024, 50+% of EU companies outsourced some cybersecurity tasks, while 65% of Luxembourg organizations relied on external firms for cybersecurity.
Source: Statista
Over half of EU companies outsourced some cybersecurity in 2024, showing a growing reliance on specialized external expertise to combat increasingly complex cyber threats. Luxembourg, a major financial center with strict data protection laws, saw even higher adoption (65%). This highlights the criticality of robust cybersecurity in sectors handling sensitive data. This IT outsourcing trend in cybersecurity is driven by factors like the increasing complexity of attacks, skills shortages, cost-effectiveness of outsourcing, focus on core business functions, and the need to comply with regulations like GDPR.

IT Outsourcing Trends in LATAM

Latin America (LATAM) is increasingly becoming a competitive player in the global outsourcing market, especially for nearshore services to North America. This growth contributes to the overall IT outsourcing trend.

According to projections, the revenue in LATAM market is set to reach $19.54 billion by 2025.
Source: Statista
This substantial growth reflects LATAM's increasing attractiveness as a nearshore outsourcing destination for North American companies. This growth is fueled by competitive labor costs, a growing pool of skilled IT professionals, and favorable time zones, all contributing to broader IT outsourcing trends.

In LATAM, Brazil is emerging as a key player in the IT outsourcing market, with its large pool of skilled IT professionals and competitive pricing.
Source: Statista
Brazil is becoming a major player in the LATAM IT outsourcing market. It offers a large pool of skilled IT professionals and competitive pricing. This makes it a preferred destination for businesses seeking reliable outsourcing solutions. This contributes to regional and global IT outsourcing trends.

Companies in LATAM are striving for efficiency and cost optimization in their outsourcing strategies.
Source: Statista
This IT outsourcing trend is driven by several factors: a desire to remain competitive in both regional and global markets, the need to access specialized skills without the overhead of full-time hires, and the opportunity to streamline operations for greater agility. By outsourcing IT functions, LATAM businesses can focus on their core competencies while leveraging external expertise to improve their bottom line.

LATAM highlights the dominant position of the US in the global IT Outsourcing market industry.
Source: Statista
The growth of the LATAM IT outsourcing market, while a positive development for the region, also serves to emphasize the US's overall dominance within the global IT outsourcing ecosystem. The interconnectedness of the market, with significant investment and demand originating from the US, means that LATAM's success is, in part, a reflection of the US's influence on global IT outsourcing trends. This interconnectedness strengthens the US position as a leader in global IT outsourcing.

Small Business IT Outsourcing Trends

Small businesses are increasingly recognizing the benefits of outsourcing, particularly in IT, to overcome resource limitations and boost productivity. These trends contribute significantly to the broader IT outsourcing trend.

Accounting and IT services are the most popular outsourced processes for small businesses. 
Source: Clutch
These areas require specialized expertise. Outsourcing allows small enterprises to access professional support without hiring full-time staff. This is a key IT outsourcing trend for smaller companies.

37% of small businesses outsource at least part of their business processes.
Source: TeamStage
More than a third of small businesses outsource at least part of their business processes. IT outsourcing trends are a major driver of this. Companies seek cost-effective ways to handle technology needs and streamline operations.

37% of small, and midsize IT organizations expect their spending on IT outsourcing will increase in the next three years.
Source: 2023 IT Outsourcing Statistics Report - Auxis
This statistic indicates a strong future for the IT outsourcing market, particularly among small and midsize IT organizations. Over a third of these organizations anticipate increasing their IT outsourcing budgets within the next three years. This projection reflects a growing confidence in the value and effectiveness of IT outsourcing as a strategy for managing IT operations, accessing specialized skills, and adopting new technologies. This anticipated spending increase is a significant indicator of ongoing IT outsourcing trends.

Summing Up

The IT outsourcing trend is clearly not just a temporary shift but a strategic imperative for businesses seeking to thrive in today's competitive digital landscape. From cost optimization and access to specialized skills to enhanced agility and faster time-to-market, the benefits are undeniable.
As we’ve explored, this IT outsourcing trend is shaping markets globally, with established powerhouses like India maintaining their dominance while dynamic regions like Vietnam emerge as attractive alternatives. By understanding these key statistics and evolving trends, organizations can make informed decisions to maximize the value of their IT investments. 
Are you ready to leverage the IT outsourcing trend to propel your business forward? BHSoft, with our expertise and presence in Vietnam, can help you navigate this complex landscape and develop a tailored outsourcing strategy. Contact us today for a consultation.