COVID-19 has caused countless damages to people all over the world, and yet, it is the main trigger to drive a fundamental shift in the way business see their operation process. With all the lockdown and social distancing policies, customers utilizing has changed from manual labour to automation and cloud computing.
The global IT outsourcing market was valued at USD 333.7 billion in 2019, and it is expected to reach USD 397.6 billion by 2025, registering a CAGR of 4.5%, during the forecast period (2020 – 2025). With digital transformation, organizations have become dependent on the success of creative applications and extensions that IT could provide. More certainly, IT has become a key competitive edge for most of the organization.
With the increasing cloud migrations and options of cloud services, IT outsourcing has become more than a simple cost reduction technique. Therefore, this new form is driven by organizational motivations in terms of business growth, customer experience, and competitive disruption.
More importantly, such increased preference amongst the newer and even smaller organizations has led the vendors of the market to increasingly focus on driving out a way to integrate the offshore team with the on-site. Another critical aspect driven by small-scale players is toward agility in vendors offering refers to the time-to-market.
With the onset of COVID-19, the vulnerability of supply chains has been exposed. For most IT organizations, a fragile ecosystem included providers of critical IT services. In addition, work-from-home mandates have led the service providers to ensure that mission-critical enterprise customers have the necessary tools and technologies to enable the speed, security, quality, and overall efficacy of services provided.
Public cloud services: market size 2009 – 2022
Global public cloud application services (SaaS) market size 2015-2022
Global public cloud infrastructure services market size 2015-2022
Public cloud application infrastructure services market 2015-2022
ACV for as-a-service market worldwide 2015-2019
Vendor revenue from the public cloud services IaaS market worldwide 2015-2019
Public cloud platform usage and adoption worldwide 2019, by service provider
Private cloud platform service usage worldwide 2017-2019
Key Findings about Cloud trends
By service type, the IaaS segment dominated the cloud services market. However, the SaaS segment is expected to exhibit significant growth during the forecast period in the cloud services industry.
By cloud type, the hybrid cloud segment dominated the cloud services market share in 2019. However, the public cloud segment is expected to exhibit significant growth during the forecast period.
By enterprise size, the large enterprises segment dominated the cloud services market in 2019. However, the small and medium enterprises segment is expected to exhibit significant growth during the forecast period
Depending on industry vertical, the BFSI sector generated the highest revenue in 2019. However, the healthcare sector is expected to witness a considerable growth in the near future.
Region wise, Asia-Pacific is expected to witness significant growth in terms of CAGR in the coming years.