Software Development Outsourcing Statistics (2026)

Introduction

Software Development Outsourcing Statistics: In recent years, many modern businesses have preferred software outsourcing to create high-quality digital solutions while saving time and costs. Rather than depending only on in-house teams, companies collaborate with skilled software experts from around the world to develop applications, websites, and systems.

This outsourcing enables organisations to access specialised talent, advanced technologies, and flexible development models. With rising competition and growing digital needs, outsourcing enables companies to stay focused on their core objectives while specialists handle technical work. Whether it is a startup or a large organisation, many businesses choose to outsource to complete projects faster, increase productivity, and remain strong in today’s rapidly evolving digital market.

Editor’s Choice

1. The global IT outsourcing market is valued at about USD 638.65 billion in 2026.
2. Around 92% of software outsourcing providers already use AI in their software service delivery.
3. In 2025, the largest share of the market, 45.05%, came from infrastructure outsourcing services.
4. The Asia-Pacific region secured a market valuation of USD 129.78 billion in 2025, with a projected growth rate of 7.03% from 2025 to 2030.
5. The estimated cost of outsourcing enterprise software development ranges from USD 100,000 to USD 500,000.
6. The U.S. has 525 outsourcing companies, accounting for 27% of the global market share.
7. Information Technology leads the market in demand for software development outsourcing, accounting for 28.5% of the total and 561 clients.
8. 80% of companies plan to either keep or increase their spending on third-party outsourcing services.
9. 65.82% of developers report that JavaScript is their most used programming language.
10. Around 34% of companies plan to outsource the CTO role within the next 12 months.

Key Takeaways

• In the United States, about two-thirds of businesses outsource some part of their IT work, and only one in four small businesses does so.
• According to the market.in, almost 92% of the top 2,000 companies in the world now use IT outsourcing.
• About 90% of companies say cloud technology makes outsourcing easier and more effective.
• Global IT outsourcing spending has reached around USD 731 billion in 2025.
• Around the world, there are nearly 28.7 million software developers.
• Almost 76% of business leaders outsource at least part of their IT operations.
• In fact, 87% of businesses say outsourced workers are fully integrated into their workforce.
• In the U.S. alone, about 300,000 jobs are outsourced every year.
• The average salary of a senior software developer is about USD 210,000, which is why 59% of companies outsource to reduce costs.
• The U.S. government expects a 22% rise in demand for software developers and QA experts by 2030.
• Around 65.82% of developers report that JavaScript is their most used programming language, followed by HTML/CSS (52.83%), SQL (51.52%), Python (45.32%), and TypeScript (43.75%).

(Source: designrush.com)

• In 2026, around 92% of software outsourcing providers already use AI in their software service delivery.
• 42% of outsourcing firms are willing to accept projects valued at less than USD 10,000.
• 89% of buyers choose outsourcing vendors mainly for their strong industry knowledge and experience.
• 84% of organisations consider it a key factor when choosing an outsourcing partner.
• Additionally, 76% of companies focus on cost savings.

IT Outsourcing Market Statistics

(Source: mordorintelligence.com)

• The global IT outsourcing market is valued at about USD 638.65 billion in 2026.
• By 2031, the market is expected to grow to nearly USD 752.08 billion, reflecting steady expansion at a CAGR of 3.32%.

By Category

• In 2025, the largest share of the market, 45.05%, came from infrastructure outsourcing services.
• Large enterprises dominated the market, accounting for 67.25% of the market share.
• Offshore centres accounted for 47.15% of sourcing activities.
• The BFSI sector leads among industries, accounting for 25.18% of the market.
• North America hold 24.12% of the market share by geography.

Growth Forecast

By Regional Outlook of the Global IT Outsourcing Market

• According to Agilie, the Asia-Pacific region secured a market valuation of USD 129.78 billion in 2025, with a projected growth rate of 7.03% from 2025 to 2030.
• The United States is forecast to generate the highest IT outsourcing revenue, reaching USD 218.02 billion in 2025.
• In Europe, the IT outsourcing market will grow to USD 282,149.2 million by 2030, with a 7.4% CAGR between 2025 and 2030.
• Latin America is expected to show strong expansion, reaching USD 126,320.9 million by 2030 with a high 10.1% CAGR from 2025 to 2030.
• In Eastern Europe, the market is estimated to reach USD 5.34 billion in 2025 and is projected to expand further at a 6.82% CAGR through 2030.
• The Australian IT outsourcing market will reach USD 21.26 billion by 2029, growing at a CAGR of 8.41% from 2025 to 2029.

By Top Countries

(Source: designrush.com)

• The U.S. has 525 outsourcing companies, accounting for 27% of the global market share.
• Following the U.S., India ranks second with 353 companies, representing 18.1% of the total market.
• Ukraine ranks third with 123 companies, accounting for 6.3% of the global outsourcing market.
• Poland and the United Kingdom share the fourth and fifth positions, each with 110 companies and a 5.6% market share.

By Industry

(Source: designrush.com)

• Information Technology leads the market in demand for software development outsourcing, accounting for 28.5% of the total and 561 clients.
• Following this, the Computer Software industry holds an 18.9% share and serves 373 clients.
• Financial Services comes next, accounting for 16.6% of the demand and 326 clients.
• Marketing & Advertising accounts for 13.8% with 271 clients, while the Retail sector has a smaller share of 7.1% and 139 clients.
• Other Industries collectively account for 15.1% of total demand.

United States Software Development Outsourcing Market

(Source: market.us)

• In 2026, the U.S. software development outsourcing market is estimated to be USD 179.4 billion, and by 2034, it will reach USD 261 million.
• The market will grow at a CAGR of 4.8% from 2025 to 2034.
• Each year, around 300,000 jobs in the U.S. are outsourced, according to 10 Pearls.
• The typical annual salary for an experienced software developer in the U.S. is about USD 210,000.
• About two-thirds of companies (66%) outsource at least one department.
• For 59% of businesses, reducing costs is the main reason for outsourcing IT services.

Key Outsourced Software Development Services And Trends

• According to Agilie, in 2024, around 78% of organisations used AI in at least one business operation.
• Meanwhile, 81% of leading public companies have already adopted blockchain technologies.
• About 93% of organisations plan to rely on external experts for different parts of their cybersecurity within the next two years.
• Many companies are outsourcing cloud services to improve efficiency, with over 41% of global leaders planning cloud investments.
• By 2027, 86.4% of companies aim to integrate digital platforms, increasing the need for outsourcing support.
• Gartner stated that 90% of large companies used RPA in 2025.

Estimated Cost Analyses By Project Type

Software Outsourcing As A Long-Term Business Strategy

• Software outsourcing is no longer a temporary solution; it is now a permanent part of how companies operate.
• Many business leaders make the mistake of outsourcing only during difficult times rather than adopting it as a long-term model.
• When selecting an outsourcing partner, 89% of businesses focus on industry experience to ensure domain expertise, according to Designrush.
• 84% of companies prioritise data privacy and security when making outsourcing decisions.
• 76% of organisations consider cost savings an important reason for outsourcing.
• Some businesses still hesitate to outsource due to quality concerns reported by 63% of respondents.
• 53% of companies worry about data protection, while 36% cite communication challenges as a key barrier.

Growing Role Of Outsourcing In Leadership And Security

(Reference: infogram.com)

• Nearly 30% of organisations are considering outsourcing CISO and CIO positions.
• 78% of companies started working with an outsourcing provider in the last six months.
• Moreover, 14% of organisations engaged outsourcing partners 6 to 12 months ago.
• 7% began outsourcing 1 to 2 years ago, while only 1% started more than two years ago.

Sustainability Trend In Software Outsourcing

• Growing global awareness of environmental problems is encouraging businesses to reduce carbon emissions and operate more sustainably.
• The software industry is also adapting to this change.
• In the coming year, companies will increasingly choose outsourcing partners that save energy, reduce waste, and support clean and renewable energy solutions.
• According to Fortune Business Insights, the global green technology and sustainability market was valued at USD 17.21 billion in 2023.
• This market is forecast to grow at a CAGR of 22.4%, increasing from USD 20.90 billion in 2024 to USD 105.26 billion by 2032.

Reasons For Outsourcing

• A report published by 10 Pearls further stated that around 79% of IT outsourcing work focuses on application and software development, while 59% relates to AI and machine learning consulting.
• Half of companies (50%) are not ready to handle next-generation technology skill shortages, especially in advanced cybersecurity, data science, and AI/machine learning.

Top Internal Challenges Leading Companies To Outsource Software Development

(Reference: 10pearls.com)

• Talent acquisition is the biggest challenge for companies, costing about USD 1,065.1 per organisation, followed by limited data analysis tools and technologies costing around USD 985.5 per organisation.
• Other challenges and costs per organisation include poor collaboration between functions (USD 912.13), employee retention issues (USD 844.1), inadequate employee skills (USD 781.14), insufficient data availability (USD 722.87), and a limited budget or poor visibility into cash flow (USD 668.95).

Top Risks In Software Outsourcing

Average Software Development Rates By Region In 2026

Artificial Intelligence (AI) And Automation In Software Development Outsourcing

• According to psc_Transition, AI coding tools like GitHub Copilot help developers write code faster by suggesting snippets and fixes, cutting coding time by nearly 30%.
• Robotic Process Automation (RPA) handles repetitive development and testing tasks, allowing developers to focus on complex work.
• Outsourcing companies are quick to adopt AI tools to accelerate delivery, improve code reviews, detect bugs, and plan projects more effectively.
• Many businesses outsource to fill AI skill gaps, as 52% of companies lack in-house AI expertise, according to Deloitte.
• Around 92% of companies already use AI or plan to use it in their service delivery processes.

(Source: infogram.com)

• Around 49% of organisations report greater efficiency and productivity, enabled by AI, with less manual effort.
• 45% claimed AI helped them to handle more work using fewer resources, improving overall output.
• 29% of companies gain new capabilities that were not possible before AI adoption.
• 28% experience faster delivery times, helping products reach the market sooner.
• 26% benefit from lower vendor service costs, while 23% see improved service quality.
• Outsourcing strategies are shifting, with 57% of organisations choosing new partners focused on AI.
• Additionally, 43% link pricing to productivity gains, 40% include AI-specific contract terms, 32% use gain-sharing models, and 25% co-develop AI-focused intellectual property with vendors.

Cloud Computing’s Role In Software Development Outsourcing

• Cloud computing is the foundation of most software development outsourcing in 2025.
• Many companies now depend on outsourcing partners to build, run, and manage cloud-based systems.
• Cloud platforms offer flexibility, easy scaling, and on-demand resources, which fit well with outsourcing needs.
• All cloud areas, including IaaS, PaaS, and SaaS, are expected to grow at double-digit rates in 2025, according to Gartner.
• The cloud outsourcing market is growing rapidly, rising from USD 34 billion in 2022 to over USD 141 billion by 2027.
• Businesses can access expert cloud skills without hiring large in-house teams.
• Applications can scale quickly during high user demand using cloud elasticity.
• Costs stay lower because companies pay only for what they use.
• Cloud-based outsourcing improves system reliability, disaster recovery, and DevOps automation for faster releases.

Software Outsourcing Process

(Source: future-processing.com)

• Step 1: Identify outsourcing opportunities and develop a strategy that aligns with business goals.
• Step 2: Issue RFI (Request for Information) or RFP (Request for Proposal), then evaluate potential IT suppliers based on capabilities and fit.
• Step 3: Prepare the contract and negotiate terms to ensure clarity on scope, deliverables, and responsibilities.
• Step 4: Plan and execute the service transition, followed by the official project launch.
• Step 5: Manage vendor relationships and oversee contract adherence and performance.
• Step 6: Conclude the current engagement or initiate a new outsourcing project.

Conclusion

After completing the article, it is clear that Software development outsourcing is a wise option adopted by most modern global businesses. It allows companies to save money, promote working with experts, and help to finish projects faster.

By outsourcing technical work to specialists, businesses can focus on their core goals and adapt more easily to change. When all the outsourcing is done correctly, it encourages innovation and helps companies grow steadily in today’s fast-paced digital world.

FAQ