Data Center Outsourcing Market Analysis

Data Center Outsourcing Market Analysis

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Based on organization size, the data center outsourcing market is divided into SME and large enterprises. The large enterprises segment is expected to grow at a CAGR of around 4.5% during the forecast period. The large enterprises segment is significantly driving the market growth due to their increasing reliance on complex IT infrastructures. These enterprises seek scalable & cost-effective solutions to manage their data processing and storage needs. Outsourcing allows them to access state-of-the-art data center facilities, reducing operational and capital expenses. Additionally, it provides flexibility and agility to adapt to evolving technology trends. Large enterprises benefit from outsourcing by focusing on core business activities, while outsourcing providers ensure high availability, security, and compliance with industry standards.
 

Based on end-user, the data center outsourcing market is categorized into BFSI, colocation, energy, government, healthcare, manufacturing, IT & telecom, and others. The IT & telecom segment was valued at over USD 25 billion in 2022. With the increasing demand for cloud computing, big data analytics, and IoT applications, IT & telecom companies require robust data center facilities. Outsourcing enables them to access specialized services and infrastructure while reducing operational costs This growth is driven by the sector's need for agility, scalability, and cost-efficiency. For instance, in September 2023, HCLTech launched a shared data center-as-a-service to facilitate cloud migration. This service aids organizations in transitioning their data center operations to the cloud by providing shared infrastructure and support, thus streamlining the migration process.
 

North America held a dominant data center outsourcing market share of over 35% in 2022. The region's robust digital economy demands scalable and secure data solutions, which outsourcing providers can efficiently deliver. Additionally, North America hosts a multitude of multinational corporations that seek cost-effective and agile data center solutions. This combination of factors positions the region as a hotspot for data center outsourcing growth, attracting both domestic and international investments.
 

For instance, in March 2023, Rimini Street introduced Rimini ONE, a comprehensive outsourcing solution encompassing IT operations, support, and maintenance. It provides organizations with a single, streamlined source for critical IT services, reducing complexities and costs associated with managing data centers. It also enables businesses to focus on their core operations while ensuring the reliability and efficiency of their data center infrastructure through outsourcing.