Global Data Center Outsourcing Market – Industry Trends and Forecast to 2030

Global Data Center Outsourcing Market, By Component (Hardware, Software, and Services), Service Type (Data Centre Application Outsourcing, Enterprise Application Outsourcing, Network Application Outsourcing, and Others), Servers (Rack, Virtual, and Hybrid), Organization Size (Small & Medium-Sized Organizations, and Large Organizations), Industry Vertical (IT & Telecommunications, BFSI, Government, Media & Entertainment, Healthcare & Life Sciences, Travel & Logistics, Manufacturing, and Others) - Industry Trends and Forecast to 2030.

Data Center Outsourcing Market Analysis and Size

Data center outsourcing is a strategic choice made by organizations to leverage the benefits and expertise of external service providers in managing their data center operations. One of the primary reasons for opting for data center outsourcing is cost reduction. Building and maintaining a data center requires significant capital investment, ongoing operational expenses, and skilled personnel. By outsourcing, companies can transfer these responsibilities to specialized providers who can achieve economies of scale, resulting in cost savings for the organization.

Data Bridge Market Research analyses that the global data center outsourcing market, which was USD 240.99 Billion in 2022, would rocket up to USD 354.02 Billion by 2030 and is expected to undergo a CAGR of 5.05%  during the forecast period.  “Large Organizations” is dominating in organization size segment as operating and maintaining an in-house data center can be expensive. By outsourcing data center services, organizations can leverage the economies of scale offered by service providers who specialize in data center operations. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Data Center Outsourcing Market Scope and Segmentation

Market Definition

Data center outsourcing refers to delegating the management and operation of an organization's data center infrastructure to a third-party service provider. Instead of building and maintaining their own data centers, organizations contract with specialized providers offering facilities, hardware, networking, and related services. In data center outsourcing arrangements, the service provider assumes responsibilities such as infrastructure provisioning, installation and maintenance, network connectivity, cooling, power management, security measures, and overall data center operations. They ensure the infrastructure's availability, reliability, and security, allowing the client organization to focus on their core business activities.

Global Data Center Outsourcing Market Dynamics

Drivers

• Growing demand for cost reduction and operational efficiency among various organizations

One of the primary drivers for data center outsourcing is cost reduction. Many organizations find building, operating, and maintaining their own data centers expensive due to high capital expenditures, operational costs, and the need for specialized expertise. By outsourcing data center services to third-party providers, companies can leverage economies of scale, reduce their capital and operational expenditures, and achieve greater cost efficiencies. Outsourcing also allows organizations to focus on their core competencies while relying on experts to handle the complexities of data center management.

• Increasing importance on scalability and flexibility

The need for scalability and flexibility in IT infrastructure is another driving factor for data center outsourcing. As businesses grow and their computing requirements expand, they often face challenges in scaling their in-house data centers to meet the increased demand. Outsourcing data center services enables organizations to quickly scale up or down their IT infrastructure based on their needs. Third-party providers can offer flexible solutions that accommodate varying workloads, allowing businesses to avoid the capital investment and lead time required for building and maintaining additional data center capacity.

• Advancement in technological expertise and innovation data center outsourcing

Data center outsourcing provides access to cutting-edge technology and expertise. With rapid advancements in technology, it can be challenging for organizations to stay updated with the latest infrastructure, security measures, and industry best practices. Data center outsourcing allows companies to leverage the expertise of specialized providers who have the knowledge and resources to implement and manage state-of-the-art data center solutions. This access to technological expertise and innovation enables organizations to benefit from advanced security measures, improved reliability, and enhanced performance of their IT infrastructure.

Opportunities

The rise in the growth in preference for shared infrastructural services is a crucial factor accelerating the market growth, also an increase in the evolution of numerous industries resulting in greater demand for virtual storage services, increase in the levels of expenditure incurred on various IT services and business technology services and rise in the research and development activities in the market are the major factors among others boosting the data center outsourcing market. Moreover, an increase in technological advancements and modernization in production techniques and a rise in the demand from emerging economies will further create new opportunities for the market growth.

Restraints/Challenges

• Lack of expertise and skilled professionals

However, the lack of expertise and skilled professionals regarding data center outsourcing services and the rise in the complications in the infrastructure of various data centers resulting in complicated integration of different consumer data are the major factors, among others restraining the market growth. They will further challenge the market growth.

Recent Development

• In December 2022, Atos SE entered into a  multiyear, industry-first agreement that extends the strategic relationship with AWS, with Atos selecting AWS as its preferred enterprise cloud provider and AWS naming Atos as a strategic partner for IT outsourcing and data center transformation

Global Data Center Outsourcing  Market Scope

The market is segmented on the basis of component, service type, servers, organization size, and industry vertical. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Component

• Hardware
•  Software
• Services

 Service Type

• Data Centre Application Outsourcing
• Enterprise Application Outsourcing
• Network Application Outsourcing
• Others

Servers

• Rack
• Virtual
• Hybrid

Organization Size

• Small & Medium-Sized Organizations
• Large Organizations

Industry Vertical

• IT & Telecommunications
• BFSI
• Government
• Media & Entertainment
• Healthcare & Life Sciences
• Travel & Logistics
• Manufacturing
• Others

Global Data Center Outsourcing  Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by country, component, service type, servers, organization size, and industry vertical as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Brazil, Argentina, rest of South America, Germany, Italy, U.K., France, Spain, Netherlands, Belgium, Switzerland, Turkey, Russia, rest of Europe, Japan, China, India, South Korea, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, rest of Asia-Pacific, Saudi Arabia, U.A.E, South Africa, Egypt, Israel, rest of Middle East and Africa..  

The U.S. is expected to dominate the market as the U.S. possesses a highly developed and mature technology infrastructure, which provides a solid foundation for hosting large-scale data centers. The country has a vast network of reliable power grids, robust telecommunications systems, and a strong internet backbone, ensuring stable and high-speed connectivity.

The Middle East and Africa (MEA) is the expected region in terms of growth in data center outsourcing market due to rise in the growth of numerous industries resulting in greater demand for virtual storage services in this region.

The country section of the report also provides individual market-impacting factors and changes in regulation in the market domestically that impact the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, and Porter’s five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Europe brands and the challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Semiconductor Infrastructure growth Installed base and New Technology Penetration

The global data center outsourcing market also provides you with a detailed market analysis for every country’s growth in healthcare expenditure for capital equipment, installed base of different kinds of products for the global data center outsourcing market, the impact of technology, and changes in regulatory scenarios and their impact on the data center outsourcing  market. The data is available for the historic period 2011-2021.

Competitive Landscape and Global Data Center Outsourcing Market Share Analysis

The global data center outsourcing market competitive landscape provides details by competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Europe presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus related to the global data center outsourcing market.

Some of the major players operating in the market are:

• Hitachi Consulting Corporation (U.S.)
• Hewlett Packard Enterprise Development LP (U.S.)
• Dell (U.S.)
• IBM Corporation (U.S.)
• HCL Technologies Limited (India)
• Accenture (Ireland)
• Atos SE (France)
• Capgemini (France)
• Cognizant (U.S.)
• Bridge Data Centres (Singapore)
• Infosys Limited (India)
• Tata Consultancy Services Limited (India)
• Tech Mahindra Limited (India)
• Unisys (U.S.)
• Ensono (U.S.)
• FUJITSU (Japan)
• T-Systems International GmbH (Germany)
• CGI Inc. (Canada)
• CompuCom Systems, Inc. (U.S.)