The global data center outsourcing market is expected to grow at a CAGR of 6.5%, reaching a market size of US$320.1 billion in 2030 from US$233.3 billion in 2025.
The global centre outsourcing market is expanding steadily as businesses increasingly contract with suppliers who have superior resources and technical know-how to handle their IT infrastructure, including cloud computing services. It has become simpler since big data, artificial intelligence, and cloud services came into being. The worldwide data center outsourcing market’s growth is driven by increased demand for scalable, efficient, and cost-effective IT infrastructure factors. Companies attempting to save money are increasingly choosing managed services for their hybrid infrastructures or outsourcing their data centers. Besides, the increasing request for cloud-based services propels the requirement for regulated hybrid infrastructure services and data center externalization.
Increasing demand for shared infrastructure
The demand for virtual storage services increased due to the growth of multiple industries and the rise in shared infrastructure services. Other factors driving the data center outsourcing market include higher spending levels on business technology and IT services and a rise in market research and development initiatives. Additionally, during the projection period, the data center outsourcing market will have new opportunities due to advancements in technology, modernization of manufacturing practices, and rising demand from emerging economies.
Growing need for affordable IT solutions
Businesses are increasingly looking for inexpensive and more effective options. Managed Services for Hybrid IT infrastructure and Data Center Outsourcing provide a cost-effective way to handle the latest IT solutions while reducing operational costs. With the help of these solutions, businesses can contract out the management of their IT infrastructure to a third-party supplier, who can offer a variety of services like networking, hosting, and storage. They can also offer improved data security, scalability, and dependability
The demand for cloud-based services is rising.
Cloud computing is an increasingly significant component of contemporary IT infrastructure. Businesses have been opting for cloud computing services to reduce costs and improve scalability, security, and performance. These solutions are cheap platforms that businesses can use to store their data, programs, and services while allowing access to them from anywhere, on any device. Because data is stored in multiple locations, making it more difficult for hackers to access, cloud-based solutions are also more secure, which is also leading to market growth.
Fragmented market and data breaches resisting global market
There are a lot of well-known, technologically advanced players in the market, and the specializations that have developed among the vendors under study are expected to further fragment the market. There will also be fierce competition because various strategies have been employed to break into new emerging markets and acquire or partner with other technology-driven companies. This has resulted in the development of incompatible technology stacks, which force potential customers to stick with a particular vendor to obtain goods and services. These challenges associated with outsourcing make businesses more vulnerable to various problems, including operational problems with communication, scope understanding, unclear stakeholder perspectives, and lowering code quality.
North America is expected to grow rapidly during the forecast period.
Outsourcers can offer scalable and secure data solutions because the region has a strong digital economy. Since there are also many multinational corporations located in North America that need adaptable cheap data centers. This combination makes it possible for businesses in this location to expand by attracting both local and international resources in terms of investment, thus making it known as a central place when expanding one’s data center outsourcing. For example, Rimini Street unveiled Rimini ONE, a complete outsourcing solution that includes IT operations, support, and maintenance, in March 2023. It reduces the costs involved in data center management by providing enterprises with a single efficient point to access essential IT services. Furthermore, it enables businesses to focus on their main strengths through outsourcing, ensuring the reliability and efficiency of their data center infrastructure.
In August 2023, Fujitsu was identified by Gartner® as a Visionary in their most recent Data Center Outsourcing and Hybrid Infrastructure Managed Services Magic QuadrantTM. Fujitsu said that being a Visionary in the Gartner Magic Quadrant points out its benefits, advanced business methods, and continuous growth. By delivering Hybrid IT solutions, Fujitsu has revolutionized industry benchmarks and delivered revolutionary improvements for its customers that are noticeable with real business results.
In July 2023, NTT DATA, a global leader in digital business and IT services, today announced the launch of an outsourcing service for security management (MDR service1) to help prevent incidents and minimize damage when they do occur. Beginning in July 2023, the service will be offered in Japan before being made available globally by the end of the fiscal year, March 2024. Advanced security engineers with over 20 years of experience in incident response as members of the company's CSIRT2 organization, along with the knowledge gained from NTT DATA's global Zero Trust Security Service, will support client companies with the MDR service.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Companies |
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