Global software outsourcing market to hit $940Bn by 2034: Market.us
NEW YORK, UNITED STATES — The global software development outsourcing market is projected to grow from $534.9 billion in 2024 to $940 billion by 2034, driven by a 5.8% annual growth rate, according to an industry report by Market.us.
North America leads the sector, accounting for 34.7% of revenue in 2024, as businesses increasingly turn to outsourcing for AI, cloud integration, and cost-efficient talent solutions.
Outsourcing demand fueled by tech talent shortages
The United States contributed $163.3 billion alone, and the shortage of labor force, as well as increasing wages of technicians, was driving firms to outsource services.
The software developers in the U.S. will have a 22% increase in demand by 2030, further fuelling the trend of dependence on external providers.
The region’s importance stems from its highly developed tech infrastructure and the numerous strategies implemented for digital transformation.
As an example of the North American companies, Forbes noted that Latin America has emerged as a nearshoring destination to North American companies due to cost and time zone similarities.
In the meantime, 66% of U.S. businesses outsource IT operations, with large firms dominating this market due to their complex project requirements.
AI and cloud drive next phase of outsourcing growth
Artificial intelligence and cloud systems now lie at the center of outsourcing partnerships, with 70% of providers deploying AI-enabled testing and coding properties along the way to expedite efficiency.
Firms are turning to outsourcing services in the fields of AI-based predictive analytics, including blockchain security and Software-as-a-Service (SaaS) services, to remain competitive. The transition is indicative of the wider industry automation and communication in real-time requirements.
In one such example, Wipro and Hewlett-Packard Enterprise built an on-premise AI solution in the year 2024, fusing outsourced innovation alongside enterprise security requirements. Similarly, over 55% of companies cite future-readiness as a key outsourcing driver, focusing on vendors that offer dev-ops and edge computing services.
Financial services and large firms lead adoption
Financial services, banking, and insurance (BFSI) made up 23.7% of the outsourcing demand in 2024, with secure fintech apps and regulatory compliance tools cited as priorities. Larger enterprises had the highest total adoption rate of 68.3 percent, leveraging outsourcing as a scalable and custom solution.
EPAM Systems reported that 76.5% of its developers exceeded global productivity benchmarks, underscoring the sector’s reliance on high-quality external teams.
Cost savings remain a critical factor, with the median U.S. developer salary hitting $210,000. Orion Innovation’s ninth consecutive ranking on the Global Outsourcing 100 list highlights the trend of enterprises partnering with specialists for digital transformation.
Meanwhile, 92% of the world’s largest 2,000 companies outsource IT, according to Dreamix data, signaling sustained growth ahead.
