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Data Center Outsourcing Market - Forecasts from 2020 to 2025

  • ID: 5067463
  • Report
  • May 2020
  • Region: Global
  • 122 pages
  • Knowledge Sourcing Intelligence LLP

FEATURED COMPANIES

  • Accenture
  • Capgemini
  • CtrlS Datacenters Ltd
  • HCL Technologies Limited
  • Infosys Limited
  • QTS Realty Trust, Inc.
  • MORE
The global data center outsourcing market is projected to grow at a CAGR of 8.31% during the forecast period. The growing volume of big data is increasing owing to the rapid adoption of digitalization across various industries including healthcare, communications and technology, and banking. However, this increase in data is also surging the costs associated with the proper management of data centers. In order to reduce the operational costs, companies are outsourcing data center solutions and services as it allows them to save a much-needed infrastructure budget. The growing popularity of cloud computing is also allowing enterprises to spend a lesser share of their IT budgets on data center infrastructure. As such, the demand for data center outsourcing services, especially Infrastructure as a Service (Iaa)) is increasing. Data sourcing service providers are able to leverage expertise as well as economies of scale which is shifting the trend away from on-premise data centers. A high level of investment is required to set up a modern and energy-efficient data center infrastructure. As such, companies have started preferring to outsource data center solutions and services, thereby driving the global data center outsourcing market growth. The high growth of these industries is further augmenting the demand for virtual storage services, thus fuelling the market growth of the data center outsourcing market. A rapid rise in data traffic is further increasing the demand for data storage, resulting in a continuous expansion of the global data center outsourcing market.

Companies are always under constant pressure to reduce the overall operational cost of business, including the cost associated with IT operations. The in-house data center adds huge expenses coupled with the substantial level of investment that is required to deploy and maintain modern, energy-efficient data center infrastructure. This, in turn, is making data center outsourcing solutions and services a better alternative, thus positively impacting the global data center infrastructure outsourcing market growth. Moreover, the end-user industries are increasingly focusing on the adoption of greener and sustainable infrastructure solutions, to effectively manage energy resources and reduce the cost associated with power consumption required for data centers. This is causing them to shift their preference towards IUS (Infrastructure Utility Service) or IaaS (Infrastructure as a Service), due to the rising popularity of shared infrastructure services in order to boost productivity, therefore, contributing to the overall market growth over the forecast period.

However, outsourcing of data center solutions and services increases the threat of loss of complete control over the IT management procedures which is still restraining enterprises to opt for data center outsourcing, thus hindering the overall market growth.

Market players are increasingly participating in the competition by offering advanced and latest solutions and services to cater to the needs of various industries such as banking and financial services, healthcare, manufacturing, and communication, and technology for various purposes in order to facilitate the faster adoption of data center outsourcing solutions and services. For example, Accenture, which is one the leading companies that are providing professional services in domains such as strategy, consulting, digital, technology and operations, offers data center outsourcing, by which they are able to convert the data centers from high maintenance to high performance, by putting their focus to important issues such as systems management, database administration, and application technical services. By using this service, the complexities involved in the data center infrastructure are removed with an improvement in utilization, the operating costs associated are lowered by up to 15-25%, and other risks are mitigated by utilizing deeply experienced resources.

The global data center outsourcing market is segmented based on enterprise size, data center location, industry vertical, and geography. By enterprise size, the market is segmented as small, medium, and large. By data center location, the global data center outsourcing market is segmented as customer premises and vendor premises. The market is further segmented by industry vertical as banking & financial services, manufacturing, communication & technology, healthcare, government, and others.

Communication and Technology industry to hold a significant share

The communication and technology industry is expected to hold a significant market share over the forecast period and grow at a notable pace. This is attributable to the fact that the Information, Communication, and Technology (ICT) sector is expanding in order to effectively and efficiently manage the burgeoning amount of data and resources being generated, which is increasing the operational and maintenance cost of data centers and increasing the complexities. This is leading to increased adoption of data center outsourcing among large and mid-sized enterprises and boosting the demand for these services.

Asia Pacific projected to witness a substantial CAGR during the forecast period

Geographically, the North American region is expected to hold a noteworthy market share and grow at a significant pace over the forecast owing to the well-developed Information, Communication, and Technology sector in countries such as the US. In addition, its position in this region is also attributable to growing investments and in data center outsourcing and new openings of data centers, which is increasing the demand for data center outsourcing and boosting the market growth. For example, recently in February 2020, Google announced its expansion plans for the year 2020. This expansion plan will help Google to increase its reach in 11 US states. Google has decided to invest around $10 billion in order to facilitate the development of offices and data centers in states such as California, Colorado, Georgia, Massachusetts, and Nebraska. APAC regional market will witness a significant CAGR between 2019 and 2025 on account of increasing investments in the Asia Pacific region in order to facilitate the faster adoption of cloud computing solutions.

Competitive Insights

Prominent key market players in the global data center outsourcing market include IBM, NTT DATA, Inc., QTS Realty Trust, Inc., Ensono, Accenture, Cognizant, Atos SE, Tata Consultancy Services (TCS), Capgemini, Infosys Limited, HCL Technologies Limiteda and Wipro Limited among others. These companies hold a noteworthy share in the market on account of their good brand image and product offerings. Major players in the global data center outsourcing market have been covered along with their relative competitive position and strategies. The report also mentions recent deals and investments of different market players over the last two years.

Segmentation

By Enterprise Size
  • Small
  • Medium
  • Large
By Data Center Location
  • Customer Premises
  • Vendor Premises
By Industry Vertical
  • Banking & Financial Services
  • Manufacturing
  • Communication & Technology
  • Healthcare
  • Government
  • Others
By Geography
  • North America
  • USA
  • Canada
  • Mexico
  • South America
  • Brazil
  • Argentina
  • Others
  • Europe
  • Germany
  • France
  • United Kingdom
  • Spain
  • Others
  • Middle East and Africa
  • Saudi Arabia
  • UAE
  • Israel
  • Others
  • Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Others
Note: Product cover images may vary from those shown

FEATURED COMPANIES

  • Accenture
  • Capgemini
  • CtrlS Datacenters Ltd
  • HCL Technologies Limited
  • Infosys Limited
  • QTS Realty Trust, Inc.
  • MORE
1. Introduction
1.1. Market Definition
1.2. Market Segmentation

2. Research Methodology
2.1. Research Data
2.2. Assumptions

3. Executive Summary
3.1. Research Highlights

4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. Data Center Outsourcing Market Analysis, By Enterprise Size
5.1. Introduction
5.2. Small
5.3. Medium
5.4. Large

6. Data Center Outsourcing Market Analysis, By Data Center Location
6.1. Introduction
6.2. Customer Premises
6.3. Vendor Premises

7. Data Center Outsourcing Market Analysis, By Industry Vertical
7.1. Introduction
7.2. Banking & Financial Services
7.3. Manufacturing
7.4. Communication & Technology
7.5. Healthcare
7.6. Government
7.7. Others
7.8. Data Center Outsourcing Market Analysis, By Geography
7.9. Introduction
7.10. North America
7.10.1. North America Data Center Outsourcing Market, By Enterprise Size, 2019 to 2025
7.10.2. North America Data Center Outsourcing Market, By Data Center Location, 2019 to 2025
7.10.3. North America Data Center Outsourcing Market, By Industry Vertical, 2019 to 2025
7.10.4. By Country
7.10.4.1. USA
7.10.4.2. Canada
7.10.4.3. Mexico
7.11. South America
7.11.1. South America Data Center Outsourcing Market, By Enterprise Size, 2019 to 2025
7.11.2. South America Data Center Outsourcing Market, By Data Center Location, 2019 to 2025
7.11.3. South America Data Center Outsourcing Market, By Industry Vertical, 2019 to 2025
7.11.4. By Country
7.11.4.1. Brazil
7.11.4.2. Argentina
7.11.4.3. Others
7.12. Europe
7.12.1. Europe Data Center Outsourcing Market, By Enterprise Size, 2019 to 2025
7.12.2. Europe Data Center Outsourcing Market, By Data Center Location, 2019 to 2025
7.12.3. Europe Data Center Outsourcing Market, By Industry Vertical, 2019 to 2025
7.12.3.1. Germany
7.12.3.2. France
7.12.3.3. United Kingdom
7.12.3.4. Spain
7.12.3.5. Others
7.13. Middle East and Africa
7.13.1. Middle East and Africa Data Center Outsourcing Market, By Enterprise Size, 2019 to 2025
7.13.2. Middle East and Africa Data Center Outsourcing Market, By Data Center Location, 2019 to 2025
7.13.3. Middle East and Africa Data Center Outsourcing Market, By Industry Vertical, 2019 to 2025
7.13.4. By Country
7.13.4.1. Saudi Arabia
7.13.4.2. UAE
7.13.4.3. Israel
7.13.4.4. Others
7.14. Asia Pacific
7.14.1. Asia Pacific Data Center Outsourcing Market, By Enterprise Size, 2019 to 2025
7.14.2. Asia Pacific Data Center Outsourcing Market, By Data Center Location, 2019 to 2025
7.14.3. Asia Pacific Data Center Outsourcing Market, By Industry Vertical, 2019 to 2025
7.14.4. By Country
7.14.4.1. China
7.14.4.2. Japan
7.14.4.3. India
7.14.4.4. South Korea
7.14.4.5. Others

8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. Company Profiles
9.1. IBM
9.2. NTT DATA, Inc.
9.3. QTS Realty Trust, Inc.
9.4. Ensono
9.5. Accenture
9.6. Cognizant
9.7. Atos SE
9.8. Tata Consultancy Services (TCS)
9.9. Capgemini
9.10. Infosys Limited
9.11. HCL Technologies Limited
9.12. Wipro Limited
9.13. CtrlS Datacenters Ltd
9.14. Rackspace

LIST OF FIGURES
LIST OF TABLES
Note: Product cover images may vary from those shown
  • IBM
  • NTT DATA, Inc.
  • QTS Realty Trust, Inc.
  • Ensono
  • Accenture
  • Cognizant
  • Atos SE
  • Tata Consultancy Services (TCS)
  • Capgemini
  • Infosys Limited
  • HCL Technologies Limited
  • Wipro Limited
  • CtrlS Datacenters Ltd
  • Rackspace
Note: Product cover images may vary from those shown
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