Market Perspective

The global Service Desk Outsourcing Market was valued at USD 88.53 billion in 2022 and is projected to reach USD 130.63 billion by 2030, growing at a CAGR of 5.09% from 2023 to 2030.

The self-desk outsourcing market size is growing rapidly with the proliferating need for businesses to optimize their operations and improve the customer experience. The major driving factor for the market growth is that outsourcing companies are using analytics tools to provide customers with a holistic view of their support processes. These services help them make better decisions from data, including the number of support tickets, resolution rate, and average response time. However, the market faces several challenges such as maintaining high-quality service delivery, mitigating data protection and regulatory compliance risks, and properly managing supplier relationships. The potential loss of control over the quality and delivery of support services and concerns related to managing communications and workflows between different service providers restrict the market growth.

Analyst’s Review on the Service Desk Outsourcing Market

Innovations in service desk outsourcing is driven by ever-changing expansion and diversification requirements, changing customer expectations, and the effectiveness of futuristic technologies and automation compared to legacy systems. AI interfaces are inevitably incorporated with service desk outsourcing, which provides a self-learning and highly conscious alternative to human interaction. The growing need for specialized skills and knowledge, artificial intelligence (AI), and machine learning (ML) to deliver more efficient and personalized support services is providing lucrative opportunities for service desk outsourcing market growth.

Market Definition

Service desk outsourcing implies hiring a third-party organization to manage the service desk support services for organizations, which provides appropriate and reliable technical support services through case management, request fulfillment, problem management, and change management. Service center outsourcing provides significant benefits to an organization by improving the quality of technical support services while delivering cost savings and scalability. In addition, outsourcing ensures the continuity of services as the service point operates continuously, which offers end users to have access of technical support services.

Market Dynamics

Recent innovations in service desk outsourcing have led to advances in artificial intelligence (AI) and automation that have increased efficiency and reduced costs. Businesses are leveraging AI-powered chatbot and virtual assistant technologies to automate and expand their customer support services, ensuring that customers receive assistance, particularly during high-demand periods. In addition, vendors are providing technical support to customers, including results-based models, agile solutions that manage support requests, and continuous improvement frameworks that adapt over time based on customers' changing needs. Service providers are offering customers more innovative solutions, including automation, AI-based technologies, and agile solutions to ensure that quality support services are provided to customers, which propels market growth.

Factors limiting service desk outsourcing include data privacy and security concerns, regulatory compliance, risk management, vendor lock-in, cultural differences, and language barriers. In addition, the other limiting factors include the need to develop strong supplier management and governance strategies to ensure supplier compliance with Service Level Agreements (SLA) and contractual obligations. This can be difficult when dealing with vendors from different cultural backgrounds, which can lead to communication and language barriers that can prevent effective service delivery. Moreover, organizations considering service center outsourcing need to carefully consider the potential benefits and limiting factors and take the necessary steps to mitigate the risks associated with outsourcing.

Segmentation Analysis

The global service desk outsourcing market is segmented based on type, application, and geography.

Based on type, the market is classified into help desk services, ITIL/ITSM services, and customer support services. Help desk services are expected to dominate the market, depicting a CAGR of 6.22% over the assessment period. The segment growth is aided by the increased use of these services to improve productivity and lower maintenance costs of IT infrastructure. This service allows businesses to receive effective and efficient support without having to invest in building and maintaining their own support team in-house. Help desk outsourcing can provide businesses with 24/7 support, ensuring that technical issues are quickly addressed and resolved, regardless of the time of day. 

Based on application, the service desk outsourcing market is segmented into large enterprises and SMEs. The large enterprises segment is anticipated to dominate the industry, exhibiting a CAGR of 4.65% over 2023-2030. Large enterprises usually have a large customer base and their help desk outsourcing is used to manage, support, and serve all these customers. These services are offered by different service providers with the required expertise and experience in managing and supporting the needs of large enterprises.

Geographical Analysis

Based on region, the global service desk outsourcing market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.

In North America, the service desk outsourcing market held the largest share of 42.34% in 2022. In North America, the market has grown in popularity as organizations seek to leverage the expertise of external service providers. The region has a broad and diverse market of service providers, with providers offering a variety of support services tailored to the needs of different industries. Market players in North America have been at the forefront of adopting technologies such as artificial intelligence (AI), analytics, and flexible frameworks to improve their service offerings. These innovations have increased efficiency and scalability, improving the overall customer experience. Service desk outsourcing in North America is providing improved support services to end users while achieving cost savings for organizations.

Asia Pacific is the fastest-growing region in the service desk outsourcing market with a revenue share of 19.06% in 2022. The market is growing rapidly across the region due to the proliferation of cloud services. Growing demand for IT and customer support services in countries such as China, India, and Japan is also supporting market growth in the region. In addition, the presence of a skilled and cost-effective workforce makes the Philippines and Vietnam attractive destinations for companies looking to outsource their service center operations.

Competitive Landscape

The global service desk outsourcing market report will provide valuable insight with an emphasis on the fragmented nature of the industry. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their respective market shares across different regions. Expansion & investments involve a range of strategic initiatives including investments in R&D activities, new manufacturing facilities, and supply chain optimization which could pose new opportunities for the market. The major players in the service desk outsourcing market are

• Accenture
• DXC Technology Company
• HCL Technologies
• Hewlett Packard Enterprise Development LP
• Infosys Limited
• Rimini Street, Inc.
• TATA Consultancy Services Limited
• Tollanis Solutions Inc.
• Wipro
• FUJITSU
• IBM

Recent Development

• April 2023 (Product Launch): Rimini Street launched Rimini ONE, which is designed to provide a complete set of unified, integrated services to operate and manage business applications, databases, and technology programs. Rimini ONE allows customers to outsource support and management of all their enterprise software from Rimini Street.

The global Service Desk Outsourcing Market is segmented as:

By Type

• Help Desk Services
• ITIL / ITSM Services
• Customer Support Services

By Application

• Large Enterprises
• SMEs

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • France
  • UK
  • Spain
  • Germany
  • Italy
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • North Africa
  • South Africa
  • Rest of Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America