Data Center Outsourcing (DCO) Market 2023 Key Country Analysis: Atos SE, Capgemini, CGI Inc., Cognizant, FUJITSU

The term "data center outsourcing" refers to a group of services offered by specialist IT companies for the implementation, upkeep, supervision, and optimal functioning of data center infrastructure and related components. The consumer group outsources these tasks to specialist IT suppliers because of their management expertise.

The Data Center Outsourcing (DCO) Market size was estimated at USD 252.99 billion in 2023 and is projected to reach USD 355.51 billion in 2030 at a CAGR of 4.98% during the forecast period 2023-2030. Data Center Outsourcing (DCO) Market, by Enterprise size (Small, Medium, Large), Data Center Location (Customer Premises, Vendor Premises), Industrial Vertical (Banking & Financial Services, Manufacturing, Communication & Technology, Healthcare, Government) and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).

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A number of key factors are driving the data center outsourcing market, including the rise in demand for shared infrastructure services, the expansion of numerous industries, an increase in spending on various IT and business technology services, and an increase in market research and development activities.

Data Center Outsourcing (DCO) Market Competitive Landscape:

Atos SE
Bridge Data Centres
Capgemini
CGI Inc.
Cognizant
CompuCom Systems, Inc.
Dell
Ensono
Fidelity National Information Services, Inc
FUJITSU
HCL Technologies Limited
Hewlett Packard Enterprise Development LP
Hitachi Consulting Corporation
IBM Corporation
Infosys Limited
Tata Consultancy Services Limited
Tech Mahindra Limited
T-Systems International GmbH
Unisys

Data Center Outsourcing (DCO) Market Recent Developments:

In December 2022, AWS and Atos SE have extended their strategic partnership through a multiyear, first-in-the-industry deal, with Atos choosing AWS as its preferred enterprise cloud provider and AWS designating Atos as a strategic partner for IT outsourcing and data center transformation.

In April 2023, Ergo, an Argentinean company focused on data that assisted businesses in developing a culture of data-driven decision-making via the use of big data, analytics, and artificial intelligence (AI)

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Data Center Outsourcing (DCO) Market Key Findings:

Based on enterprise size, the market is segmented into small, medium, large. The small enterprise segment dominated the market in the forecast period. In order to expand and reach new markets, smaller enterprises are more inclined to employ data center outsourcing services. Additionally, outsourcing services help small businesses lower the cost of their data center infrastructure. These services assist with business continuity due to their catastrophe recovery capabilities.

Based on data center location, the market is segmented into customer premises, vendor premises. The vendor managed data center outsourcing dominated the market in this segment. This is because vendor managed data center outsourcing is a more popular option for organizations that do not want to invest in their own data center infrastructure or do not have the expertise to manage it in-house.

Based on industrial vertical, the market is bifurcated into banking & financial services, manufacturing, communication & technology, healthcare, government. Technology and communication sector dominated the market in this segment. This is a result of the perception that the Information, Communication, and Technology (ICT) sector is developing in order to effectively and efficiently handle the increasing volume of data and resources being produced, which is increasing the complexity and expense of data center operations. The need for these services is increasing as a result of the growing popularity of data center outsourcing among big and mid-sized organizations.

The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America is estimated to account for the largest market share during the forecast period because of the well-developed Information, Communication, and Technology sector in countries like the United States. Moreover, its dominance in this area is a result of growing data center outsourcing expenditures and new data center openings that are boosting demand and propelling market expansion.

Data Center Outsourcing (DCO) Market Regional Analysis:

North America to Dominate the Market

North America is estimated to account for the largest market share during the forecast period because of the well-developed Information, Communication, and Technology sector in countries like the United States.

Moreover, its dominance in this area is a result of growing data center outsourcing expenditures and new data center openings that are boosting demand and propelling market expansion.

Delvens Industry Expert's Standpoint

The Data Center Outsourcing (DCO) Market is expected to grow during the forecast period. This growth can be attributed to several factors, including the rise in demand for shared infrastructure services, the expansion of numerous industries, an increase in spending on various IT and business technology services, and an increase in market research and development activities. However, lack of expertise and skilled professionals in the industry as well as an increase in the infrastructure-related complications in different data centers might hamper the growth of the market during the forecast period.

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