IT outsourcing is an operative model where information technology (IT) service providers offer IT services to businesses. IT is the application of computers to transmit, study, store, retrieve, and manipulate information or data, often in the context of enterprises or other businesses. The IT service provider could be an external IT service provider or an internal IT organization. Global IT outsourcing refers to services related to technical expertise that enable organizations to manage, create, optimize, and access information and business processes.
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IT outsourcing also provides restoration and data backup services. This has resulted in higher productivity and reduction of operational costs of organizations.
The global IT outsourcing market is mainly driven by an increase in the number of start-up companies and rise in the adoption of advanced technologies in order to manage, test, develop, install, troubleshoot, and configure computer hardware and software of an organization on a regular basis. Additionally, an increase in emphasis on developing an IT-efficient infrastructure and rise in demand for IT services such as system integration services and consulting services by organizations are boosting the market.
Furthermore, increase in the need to support a virtualized IT ecosystem is a major factor propelling the IT outsourcing market. Increase in migration and digitization to the cloud frame is also fuelling demand for the IT outsourcing model across the world. However, safety and privacy concerns and rise in hacking incidents on application-based services are some of the major factors that are restraining the market. Furthermore, high cost of advanced infrastructure to manage IT services is hampering the market.
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