Australia’s IT outsourcing market to reach $21.26Bn by 2029: Statista
CANBERRA, AUSTRALIA — Australia’s IT outsourcing market is on track for remarkable growth, projected to increase by 8.41% annually from 2025 to 2029, reaching a value of US$21.26 billion, according to recent Statista data.
This surge reflects the growing trend of Australian businesses turning to external IT service providers to drive efficiency, innovation, and digital transformation in an increasingly competitive landscape.
Australia’s IT outsourcing market growth and industry trends
The broader IT services sector in Australia is also expanding at a healthy rate of 5.82% per year, with expectations to reach US$48.26 billion by 2029. Within this sector, ‘Other IT Outsourcing’ will grow by 5.01% to US$6.42 billion, while ‘Application Outsourcing’ will increase to US$3.35 billion at a rate of 1.07%.
“Companies are [recognizing] the benefits of outsourcing, including cost reduction, access to expert talent, and improved service delivery,” notes Troy Beamer of Tech Business News.
Rapid advancements in artificial intelligence, cloud computing, and cybersecurity are driving this market expansion. These technologies require specialized expertise that many companies find difficult to maintain in-house.
A notable trend in the Australian market is the shift toward nearshoring, with businesses increasingly outsourcing to countries that offer similar time zones and cultural compatibility. These include New Zealand, the Philippines, and Indonesia.
Impact on digital marketing services
The IT outsourcing boom is creating parallel opportunities for digital marketing services, particularly SEO outsourcing. As businesses delegate their technical operations to specialized providers, many are applying the same approach to their digital marketing strategies.
“As more Australian SEO agencies in big cities like Sydney turn to outsourcing IT functions, it signals a parallel opportunity for digital services such as SEO outsourcing,” Beamer explains.
This trend is especially relevant as businesses seek to enhance their online visibility in an increasingly digital marketplace. Companies looking to scale their online presence can benefit from outsourced SEO services to improve search rankings, implement expert strategies aligned with evolving algorithms, and reduce in-house workload.
The future outlook remains positive, with Beamer concluding that “companies that invest in professional SEO services alongside their IT infrastructure will be better positioned to dominate their respective markets.”
