Market Overview

The UK outsourced IT services market reached a size of USD 24.56 Billion in 2024. Forecasts suggest that the market will expand to USD 52.03 Billion by 2033, with a compound annual growth rate (CAGR) of 8.70% during the forecast period of 2025-2033. The market growth is driven by increasing demand for cost-effective IT solutions and access to expertise and advanced technologies, which help businesses enhance their IT capabilities and service delivery. 

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

UK Outsourced IT Services Market Key Takeaways

  • The UK outsourced IT services market size reached USD 24.56 Billion in 2024.
  • The market is expected to grow at a CAGR of 8.70% during 2025-2033.
  • The forecast period for the market is 2025-2033.
  • Growing need for cost efficiency is propelling market expansion by reducing operational costs through outsourcing.
  • Collaboration between IT firms and specialized service providers improves resource allocation.
  • Increasing access to expertise and advanced tools supports enhancement of IT capabilities and service delivery.
  • Strategic acquisitions, such as Marex's purchase of Cowen’s prime brokerage and outsourced trading operations, are broadening service portfolios.

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Market Growth Factors

The UK outsourced IT services market is driven by cost reduction demand․ Organizations increasingly turn to outsourced IT service providers to help them considerably reduce operating costs by avoiding the capital costs and operational costs associated with supporting their own IT operations in-house․ This outsourcing of this function to a specialist can enable the companies to benefit from economies of scale, avoid capital outlay, have a predictable cost, and focus their resources and expertise on their core functions․

Another factor is increasing access to specialist knowledge and technology․ In a rapidly changing technology environment, firms need the latest technology and specialist knowledge in order to compete․ Outsourcing IT services allows organizations access to up-to-date technology, specialized staff, and lower costs on technological investments while providing the organization with improved capabilities in service delivery and adaptation to market fluctuations․

Other planned moves in the market have also supported this growth․ For example, Marex agreed to acquire Cowen's legacy prime brokerage and outsourced trading business in September 2023, giving Marex expanded product and asset coverage․ In 2024, Digital Space launched its Unified secure access service edge (SASE) into the UK mid-market, bringing a new way to offer managed security services to customers who want flexibility, scalability and simplicity․

Market Segmentation

Service Insights:

  • End Use Services: Comprise a core segment providing direct outsourced IT functionalities.
  • Emerging Technology Services: Offer access to the latest IT innovations assisting businesses to remain competitive.
  • Data Center Operations: Involve managing dedicated facilities for IT infrastructure.
  • Helpdesk Services: Provide user support and issue resolution outsourcing.
  • Infrastructure Capacity Services: Include managing and scaling IT infrastructure needs.
  • Managed Security Operations: Focus on outsourced IT security monitoring and management.
  • Network Operations: Cover outsourcing of network management and optimization.
  • Others: Include additional outsourced IT services not classified elsewhere.

Location Insights:

  • On-shore: Services provided within the UK.
  • Off-shore: Services delivered from locations outside the UK, offering cost advantages.

Enterprise Size Insights:

  • Large Enterprises: Target major corporations with extensive IT needs.
  • Small and Medium Enterprises (SME’s): Cater to smaller organizations seeking outsourced IT solutions.

End Use Insights:

  • Aerospace and Defense: IT services tailored for aerospace and defense sectors.
  • BFSI: Banking, Financial Services, and Insurance sector outsourcing.
  • Healthcare: Outsourced IT solutions for healthcare providers.
  • Retail and e-commerce: Services designed for retail and online commerce businesses.
  • Telecom and Media: IT outsourcing for telecommunications and media firms.
  • Others: Various other sectors including miscellaneous industries.

Regional Insights

The UK outsourced IT services market encompasses major regions including London, South East, North West, East of England, South West, Scotland, West Midlands, Yorkshire and The Humber, East Midlands, and others. The report provides comprehensive forecasts and analyses within these regional markets but does not specify a single dominant region. These regional breakdowns facilitate understanding of market penetration and growth opportunities across the United Kingdom.

Recent Developments & News

In July 2024, Wipro Holdings (UK) completed transferring its entire stake in Wipro Financial Outsourcing Services Ltd to Wipro IT Services UK Societas. This move aimed to streamline and simplify the overall corporate structure, enabling Wipro IT Services UK Societas to hold a full 100% ownership in Wipro Financial Outsourcing Services, consolidating its market position.

Competitive Landscape

The market research report has provided a comprehensive analysis of the competitive landscape including market structure, key player positioning, winning strategies, and company evaluation quadrants. Detailed profiles of major companies have been included to offer insights into the competitive dynamics of the UK outsourced IT services market.

Key Players

  • Marex
  • Cowen
  • Digital Space
  • Wipro Holdings (UK)
  • Wipro Financial Outsourcing Services Ltd
  • Wipro IT Services UK Societas

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