Technical Support Outsourcing Market Overview
As per MRFR analysis, the Technical Support Outsourcing Market Size was estimated at 16.15 (USD Billion) in 2022. The Technical Support Outsourcing Market Industry is expected to grow from 17.46(USD Billion) in 2023 to 35.27 (USD Billion) by 2032. The Technical Support Outsourcing Market CAGR (growth rate) is expected to be around 8.12% during the forecast period (2024 - 2032).
Key Technical Support Outsourcing Market Trends Highlighted
Technical Support Outsourcing, TSO for short, has become one of the key segments that has shown an extraordinary growth rate as a result of the growing complexity of technologies available in the market and the specialization that is required. Some of the key trends include growing cloud, mobile, and SaaS consumption, which call for added support capabilities in TSO providers. TSO also extends more participatory services such as remote support, help desk, and managed services geared towards changing business trends. With these services, organizations are able to improve their operational performance, cut down their expenses, and increase customer satisfaction.
Reliably, some current developments in the TSO market are the emergence of AI-based support tools and the new need for clients’ services rendered from home. The AI tools save time and improve customer satisfaction by getting done short duties necessary to solve an issue. Remote support services have become more popular because many employees are working from home, and there is a need for remote and easy-to-access support services.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Technical Support Outsourcing Market Drivers
Increasing Complexity of IT Infrastructures
The growing complexity of IT infrastructures is a major driver of the Global Technical Support Outsourcing Market Industry. As businesses increasingly rely on complex IT systems to support their operations, they need specialized technical expertise to manage and maintain these systems. Outsourcing technical support to managed service providers (MSPs) allows businesses to access a pool of skilled technicians who can provide 24/7 support for their IT infrastructure. This helps businesses to improve the reliability and performance of their IT systems, reduce downtime, and ensure that their business operations are not disrupted by technical issues.
Rising Demand for Remote Support
The rising demand for remote support is another key driver of the Global Technical Support Outsourcing Market Industry. With the increasing adoption of remote work and the growing popularity of cloud-based applications, businesses need to be able to provide technical support to their employees and customers from anywhere in the world. Outsourcing technical support to MSPs allows businesses to provide remote support quickly and efficiently without the need to invest in their own in-house support team.
Growing Focus on Cost Optimization
The growing focus on cost optimization is also driving the growth of the Global Technical Support Outsourcing Market Industry. Businesses are increasingly looking for ways to reduce their operating costs, and outsourcing technical support can be a cost-effective way to do so. MSPs can provide technical support services at a lower cost than businesses could provide in-house, as they have the expertise and infrastructure to support multiple clients.
Technical Support Outsourcing Market Segment Insights
Technical Support Outsourcing Market Service Type Insights
Ways in which the Global Technical Support Outsourcing Market is segmented include the service type. By service type, the market is divided into infrastructure management, application support, help desk support, network management, and remote monitoring and management. Infrastructure management is expected to be the highest market share holder of the segment in 2023. This is attributable to an increased rate of adoption of both virtualization and cloud technologies. Application support is expected to experience the fastest segment growth during the forecast period.
This is in response to a growing demand for outsourced maintenance and application development. Help desk support is also expected to remain a significant market segment owing to the need for both efficient and cost-effective customer support. Network management is expected to grow modestly, owing to the increased complexity of such infrastructures. Remote monitoring and management are required for proactive monitoring and are, therefore, expected to continue growing. In 2023, the Global Technical Support Outsourcing Market for infrastructure management is expected to be worth 6.24 billion USD, growing to reach 10.27 billion USD by 2032 at a 6.4% CAGR during the period.
The Global Technical Support Outsourcing Market for application support is expected to be worth 4.12 billion USD in 2023, growing to reach 8.22 billion USD by 2032, growing at a CAGR of 9.1%. The Global Technical Support Outsourcing Market for help desk support is expected to be worth 3.78 billion USD in 2023, growing to reach 6.89 billion USD by 2032 at a 7.9% CAGR. The Global Technical Support Outsourcing Market for network management is expected to be worth 2.96 billion USD in 2023, growing to reach 5.23 billion USD by 2032 at 7.2%. The Global Technical Support Outsourcing Market for remote monitoring and management is expected to be 2.67 billion USD in 2023, growing to reach 4.66 billion USD by 2032 at a 7.5% CAGR.
The increased rate of adoption of both cloud and virtualization technologies, as well as the growing demand for application development and maintenance, are factors expected to drive the global technical support outsourcing market during the period. The need for efficient customer support at low cost is also expected to drive the market. The growing complexity of networks will also drive the market, as will the growing adoption of IoT devices.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Technical Support Outsourcing Market Business Process Insights
The Business Process segment of the Global Technical Support Outsourcing Market incorporates a vast number of services to streamline business operations. In 2023, this segment held a significant share of the market, which equaled about USD 15.39 billion. Presently, the segment is expected to remain on the growth path; by 2032, the market value for it will reach roughly USD 25.67 billion, maintaining a CAGR of 6.3%. As for services provided in the area, Break-fix Support remains one of the essential ones to the segment, as it resolves technical issues as they occur.
Meanwhile, services such as Proactive Monitoring and Preventive Maintenance allow for identifying potential issues and avoiding them if they can be addressed proactively. The services associated with Risk Management and Compliance are also rather important for modern organizations, as they help in complying with technological legislative demands. End-to-end support is another service that was included in the analysis, as it provides a full range of external technical support, which ensures that businesses operate smoothly and efficiently.
Technical Support Outsourcing Market Technology Environment Insights
The Technology Environment segment plays a crucial role in shaping the Global Technical Support Outsourcing Market landscape. In 2023, the cloud-based segment dominated the market, accounting for a significant share of the Global Technical Support Outsourcing Market revenue. This dominance is attributed to the growing adoption of cloud-based solutions by businesses seeking cost-effective and scalable technical support services. The cloud-based segment is projected to maintain its leadership throughout the forecast period, driven by the increasing demand for remote support and collaboration tools.
Additionally, the hybrid segment is expected to witness substantial growth due to its flexibility and ability to combine on-premise and cloud-based infrastructure. SaaS and IaaS are expected to be key growth drivers within the Technology Environment segment, owing to their increasing adoption for delivering software and infrastructure as a service.
Technical Support Outsourcing Market Industry Vertical Insights
The Global Technical Support Outsourcing Market is segmented by Industry Vertical into IT and Telecommunications, Healthcare, Financial Services, Manufacturing, and Education. Among these, the IT and Telecommunications segment held the largest market share in 2023, accounting for over 35% of the Global Technical Support Outsourcing Market revenue. The Healthcare segment is expected to grow at the highest CAGR of 10.2% during the forecast period 2024-2032, owing to the increasing adoption of digital health technologies and the need for specialized technical support for medical devices and healthcare IT systems.
The Financial Services segment is also expected to witness significant growth, driven by the increasing complexity of financial products and regulations, as well as the need for compliance with data security and privacy laws. The Manufacturing segment is expected to grow steadily, driven by the increasing adoption of automation and the need for technical support for industrial machinery and equipment. The Education segment is expected to grow at a moderate pace, driven by the increasing demand for online education and the need for technical support for educational software and hardware.
Technical Support Outsourcing Market Support Level Insights
The Global Technical Support Outsourcing Market is segmented by Support Level into Tier 1 Support, Tier 2 Support, Tier 3 Support, 24/7 Support, and Onsite Support. Among these, Tier 1 Support held the largest market share in 2023, accounting for over 40% of the Global Technical Support Outsourcing Market revenue. Tier 1 Support typically involves resolving basic and common technical issues and providing initial assistance to customers. Tier 2 and Tier 3 Support handle more complex technical issues, requiring specialized knowledge and expertise. 24/7 Support ensures round-the-clock technical assistance, catering to businesses with critical operations or global customers.
Onsite Support involves technicians at the customer's location to resolve technical issues, offering a personalized and hands-on approach. The market for Technical Support Outsourcing is expected to grow significantly in the coming years, driven by the increasing adoption of technology, the need for specialized technical expertise, and the growing complexity of IT systems.
Technical Support Outsourcing Market Regional Insights
The Global Technical Support Outsourcing Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the presence of a large number of technology companies and the increasing adoption of cloud-based services. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness significant growth in the coming years due to the increasing adoption of technology and the growing number of startups. South America and MEA are expected to be the smallest markets, but they are expected to grow at a steady pace.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Technical Support Outsourcing Market Key Players and Competitive Insights
Major players in the Technical Support Outsourcing Market industry are continuously focusing on expanding their global presence through strategic partnerships with local providers, acquisitions, and joint ventures. Leading Technical Support Outsourcing Market players are investing heavily in research and development (R&D) to develop innovative solutions that cater to the evolving needs of their clients. The Technical Support Outsourcing Market industry is expected to witness significant growth in the coming years, driven by the increasing adoption of cloud-based solutions, the growing demand for specialized technical support services, and the need for cost optimization.
One of the leading players in the Technical Support Outsourcing Market is Accenture. The company offers a comprehensive range of technical support services, including infrastructure management, application support, and cloud support. Accenture has a global presence with offices in over 120 countries and serves a diverse client base across various industry verticals. The company's commitment to innovation and customer satisfaction has helped it maintain its leadership position in the market.
A major competitor in the Technical Support Outsourcing Market is IBM. The company provides a wide range of technical support services, including hardware and software support, consulting, and managed services. IBM has a strong global presence and serves a wide range of clients, including large enterprises and government agencies. The company's focus on delivering high-quality services and its commitment to customer satisfaction has made it a formidable competitor in the market.
Key Companies in the Technical Support Outsourcing Market Include
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TCS
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Infosys
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Cognizant
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Accenture
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Tech Mahindra
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Lenovo
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Capgemini
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Wipro
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Dell Technologies
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NTT Ltd.
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IBM
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DXC Technology
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HCL Technologies
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HPE
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Fujitsu
Technical Support Outsourcing Market Industry Developments
The global technical support outsourcing market is projected to grow from USD 17.46 billion in 2023 to USD 35.27 billion by 2032, at a CAGR of 8.12%. The growth of the market is attributed to the increasing adoption of cloud-based services, the need for specialized technical expertise, and the rising demand for cost-effective support solutions. Recent news developments in the market include the acquisition of Support.com by Asurion in 2023, which is expected to strengthen Asurion's position in the technical support market. Additionally, companies like IBM and Wipro are investing in AI-powered support solutions to enhance customer experience and reduce costs.
Technical Support Outsourcing Market Segmentation Insights
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Technical Support Outsourcing Market Service Type Outlook
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Technical Support Outsourcing Market Business Process Outlook
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Technical Support Outsourcing Market Technology Environment Outlook
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Technical Support Outsourcing Market Industry Vertical Outlook
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Technical Support Outsourcing Market Support Level Outlook
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Tier 1 Support
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Tier 2 Support
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Tier 3 Support
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24/7 Support
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Onsite Support
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Technical Support Outsourcing Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
16.15(USD Billion) |
| Market Size 2023 |
17.46(USD Billion) |
| Market Size 2032 |
35.27(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
8.12% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
TCS, Infosys, Cognizant, Accenture, Tech Mahindra, Lenovo, Capgemini, Wipro, Dell Technologies, NTT Ltd., IBM, DXC Technology, HCL Technologies, HPE, Fujitsu |
| Segments Covered |
Service Type, Business Process, Technology Environment, Industry Vertical, Support Level, Regional |
| Key Market Opportunities |
Cloud-based solutions Remote monitoring and management Automation Predictive analytics Cybersecurity |
| Key Market Dynamics |
Rising demand for remote support Cloud-based solutions adoption Growing need for specialized support Proactive monitoring and predictive maintenance Artificial Intelligence AI and machine learning integration |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Global Technical Support Outsourcing Market is expected to reach a valuation of 17.46 Billion USD in 2023, showcasing a steady growth trajectory.
The Global Technical Support Outsourcing Market is anticipated to expand at a robust CAGR of 8.12% during the period of 2024 to 2032, indicating promising growth prospects.
North America is anticipated to lead the Global Technical Support Outsourcing Market in 2023 due to the presence of established technology hubs, a high concentration of enterprises adopting managed services, and increasing demand for specialized technical support.
Technical Support Outsourcing services find applications in diverse sectors, including IT and Telecom, Healthcare, BFSI, Manufacturing, and Retail, among others. These services provide expertise in areas such as hardware and software support, network management, cloud services, and cybersecurity.
Major players in the Global Technical Support Outsourcing Market include IBM, Infosys, HCL Technologies, Tech Mahindra, Accenture, TCS, Cognizant, Wipro, Capgemini, and NTT Data, among others. These companies offer a range of technical support services to meet the evolving needs of businesses worldwide.
Factors driving the growth of the Global Technical Support Outsourcing Market include the rising adoption of cloud computing, increasing demand for remote technical support, growing need for specialized expertise, cost optimization strategies, and the proliferation of digital devices and IoT applications.
Challenges faced by the Global Technical Support Outsourcing Market encompass data security concerns, language barriers, cultural differences, managing complex IT environments, and ensuring service quality consistency across diverse regions.
Emerging trends in the Global Technical Support Outsourcing Market include the integration of AI and automation, the adoption of predictive analytics, the focus on customer experience, the demand for proactive support, and the rise of specialized support services catering to specific industry verticals.
Key strategies adopted by players in the Global Technical Support Outsourcing Market involve expanding global delivery capabilities, investing in research and development, forming strategic partnerships, enhancing service offerings, and focusing on customer retention and satisfaction.
The Global Technical Support Outsourcing Market is projected to reach a valuation of 35.27 Billion USD by 2032, reflecting a significant increase in market size over the forecast period.
