Software Outsourcing Industry Trend Analysis Report

This paper will conduct an in-depth analysis of the current state and future trends of the outsourcing industry through a decade-long market size analysis, the performance of leading international outsourcing firms, profiles of 12 listed domestic outsourcing service providers, and a three-year market survey by the Big Four accounting firms. It will also share key factors for standing out in the enterprise services sector.

An Initial Exploration of the Global Outsourcing Market

According to a report by the U.S. market research firm Statista, the global IT outsourcing market totaled $288 billion in 2013, equivalent to approximately 1.8 trillion RMB. It is projected to grow at an annual rate of 5.84%, reaching 2.6 trillion RMB by 2019.

Within this massive market, the top players by market share are IBM, HP, Fujitsu, CSC, and Accenture. Collectively, these firms account for only 28% of the total market. Unlike the mobile phone or computer systems markets, where a single company dominates, the IT outsourcing market remains relatively fragmented.

Andreessen Horowitz, a prominent Silicon Valley venture capital firm behind investments in unicorns like Facebook, Airbnb, Twitter, and Slack, has invested $10 million in Gigster's Series A round. Gigster is a low-cost outsourcing service provider offering rapid quotes. This underscores the significant potential for disruption and innovation within this sector.

Analysis of Domestic and International Outsourcing Market Share

Domestic growth appears to be outpacing international expansion, with the Chinese government's vigorous promotion of the “Internet Plus” initiative likely playing a key role. According to Analysys data, the outsourcing market doubled in size between 2011 and 2015. Projecting from the global growth rate of 5.84%, China's post-2017 expansion represents a conservative estimate.