IT Services Outsourcing Category - Procurement Intelligence
In this IT Services Outsourcing procurement intelligence report, we have estimated the pricing of the key cost components setup costs (infrastructure, transition, and migration), labor, software licensing fee for service provider, rent & utilities, maintenance & upgradation, and other costs. Other costs are further bifurcated into insurance expenses, legal & consulting costs, security, change management costs, and exit costs.
IT outsourcing companies often use one of many pricing structures. One is the fixed-price services, which ensures that a business will receive whatever is agreed for the sum of money specified in the contract and have a predetermined, predictable pricing for the services indicated. This tactic is more typical for service agreements with monthly flat fees. Second is based on materials and time, which are less strict because the cost is determined by the precise services provided and the amount of time needed to finish the job.
The average price of outsourcing IT services by region is: USD 60 - USD 208 per hour for North America, USD 33 - USD 95 per hour for Latin America, USD 25 - USD 94 per hour for Central & Eastern Europe, USD 23 - USD 70 per hour for South Asia, and USD 17 - USD 69 per hour for Southeast Asia.
Order your copy of the IT Services Outsourcing category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis
Operational Capabilities - IT Services Outsourcing
- Geographical Service Provision - 25%
- Industries Served - 20%
- Years in Service - 15%
- Revenue Generated - 15%
- Employee Strength - 15%
- Certification - 10%
Functional Capabilities - IT Services Outsourcing
- Custom Software Development - 25%
- Infrastructure Management - 20%
- Cloud Services - 15%
- Cybersecurity - 15%
- Quality Assurance & Testing - 10%
- Technical Support - 10%
- Others - 5%
Rate Benchmarking
On an average, based on real-world instances and industry data, the price per hour for software development projects can vary from $24 to $149 based on the location, technology stack, and project's complexity. Projects on the higher end of the range can need specialized knowledge or cutting-edge technologies. The price of infrastructure management services can be expressed as a monthly charge or as a percentage of the devices or servers that are maintained. For small to medium-sized firms, the typical monthly cost might vary from $499 to $1,999.
Cost incurred on data analytics services can vary depending upon the variables such as amount of data, the intricacy of the analysis, and the intended insights. The price involves hourly charges ranging from $49 to $299. Technical support services can be paid for on a monthly retainer basis or according to the quantity of people or devices they assist. Depending on the extent of support and service needs, the monthly fee might vary from $14 to $49 per user/device.
Supplier Newsletter
In November 2023, Accenture plc announced acquisition of Innotec System S.L.U. from Entelgy Group. The acquisition will add over 499 cybersecurity specialists to Accenture’s existing security workforce and increase its capacity to offer clients critical cybersecurity knowledge and skills and position itself as one of the leading providers of MSS (managed security services) in Spain.
In October 2023, IBM Corporation announced the acquisition of Manta Software Inc. This acquisition will help IBM to enhance its offerings in ‘watsonx.ai’, ‘watsonx.data’, and ‘watsonx.governance’ product space and support business enterprises in offering highly quality products, as increasing integration of artificial intelligence (AI) into business workflows and the complexity of data has made data quality and explainability crucial components of company strategies and systems.
In September 2023, Infosys Limited announced the acquisition of Danske Bank’s IT Centre in India. Infosys was chosen by Danske Bank as a key partner to scale and expedite digital transformation projects. Through this partnership, Danske Bank will be able to fulfill its strategic goals of improving client experiences, achieving operational excellence, and modernizing its technological environment with next-generation solutions.
List of Key Suppliers
- Accenture plc
- Atos SE
- Capgemini Services SAS
- Cognizant Technology Solutions Corporation
- DXC Technology Company
- HCL Technologies Limited
- Infosys Limited
- International Business Machines (IBM) Corporation
- NTT DATA Group Corporation
- TATA Consultancy Services Limited
- Wipro Limited
- WNS (Holdings) Ltd.
Browse through Grand View Research’s collection of procurement intelligence studies:
- Disposable Medical Gloves Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Cyber Security Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Lab Equipment Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
- Commercial Real Estate Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
IT Services Outsourcing Procurement Intelligence Report Scope
- IT Services Outsourcing Category Growth Rate : CAGR of 8.52% from 2023 to 2030
- Pricing Growth Outlook : 5% - 10% increase (Annually)
- Pricing Models : Fixed pricing, time & materials pricing
- Supplier Selection Scope : Cost and pricing, past engagements, productivity, geographical presence
- Supplier Selection Criteria : Geographic service provision, industries served, years in service, certifications, custom software development, infrastructure management, cloud services, cybersecurity, quality assurance & testing, technical support, and others.
- Report Coverage : Revenue forecast, supplier ranking, supplier matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model
Brief about Pipeline by Grand View Research:
A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.
Our services include (not limited to):
- Market Intelligence involving – market size and forecast, growth factors, and driving trends
- Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
- Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
- Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions
