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Europe Outsourcing Services Market Size, Share & Industry Analysis Report By Type, By Industry Vertical, By Deployment Type (Onshore Outsourcing, Offshore Outsourcing, Nearshore Outsourcing, and Other Deployment Type), By Country and Growth Forecast, 2025

Publisher Knowledge Based Value (KBV) Research
Published Jun 20, 2025
Length 228 Pages
SKU # KBV20173013

Description

The Europe Outsourcing Services Market would witness market growth of 8.2% CAGR during the forecast period (2025-2032). In the year 2021, the Europe market's volume surged to 8.64 Quintal, showcasing a growth of 2.8% (2020-2023).

The UK market dominated the Europe Outsourcing Services Market by Country in 2024, and would continue to be a dominant market till 2032; thereby, achieving a market value of $221,884 million by 2032. The Germany market exhibiting a CAGR of 7.3% during (2025 - 2032). Additionally, The France market would experience a CAGR of 9.1% during (2025 - 2032).

Knowledge process outsourcing is gaining traction, particularly for services that require specialized expertise, such as market research, legal support, and analytics. The healthcare sector, for instance, increasingly relies on outsourcing for medical billing, coding, and even telemedicine support, while the finance industry delegates tasks like risk management, compliance monitoring, and financial analysis to specialized service providers. This diversity in applications not only broadens the market’s reach but also enables organizations to tailor outsourcing arrangements to specific business objectives and industry requirements.

Moreover, the adoption of outsourcing services has grown considerably as enterprises recognize the strategic value in accessing specialized skills, reducing operational costs, and accelerating digital transformation. Startups, mid-sized firms, and large multinational corporations alike are embracing outsourcing to enhance flexibility, scalability, and efficiency. Companies with global ambitions leverage outsourcing to expand into new markets, benefit from time zone differences, and ensure round-the-clock service delivery.

Germany, Europe’s largest economy, is a significant player in the outsourcing services market, particularly in IT outsourcing (ITO) and business process outsourcing (BPO). The market is driven by Germany’s robust industrial base, advanced digital infrastructure, and a strong emphasis on efficiency and innovation. German companies, especially in manufacturing, automotive, and finance, increasingly outsource non-core functions to focus on strategic goals. The outsourcing market benefits from Germany’s high demand for specialized IT services, fueled by its leadership in Industry 4.0 and digital transformation initiatives. With approximately 24.4 million SMEs in the EU contributing significantly to the economy, Germany’s SME sector is a key driver of outsourcing demand.

The United Kingdom is a leading hub for outsourcing services in Europe, with a mature and well-established ecosystem for BPO and ITO. The UK’s outsourcing market is driven by its robust business infrastructure, skilled workforce, and strategic geographic location, making it a preferred destination for global enterprises. In 2023, 48% of UK companies outsourced work, a 41% increase since the pandemic, reflecting the market’s resilience and adaptability. The UK’s outsourcing industry spans sectors like finance, IT, and customer service, with significant investments in BPO projected to reach £212 billion in 2023.

Based on Type, the market is segmented into IT Outsourcing, Business Process Outsourcing, Knowledge Process Outsourcing, Engineering Services Outsourcing, and Other Type. Based on Industry Vertical, the market is segmented into BFSI (Banking, Financial Services & Insurance), IT & Telecommunications, Healthcare & Life Sciences, Retail & E-commerce, Manufacturing, Government & Public Sector, Transportation & Logistics, and Other Industry Vertical. Based on Deployment Type, the market is segmented into Onshore Outsourcing, Offshore Outsourcing, Nearshore Outsourcing, and Other Deployment Type. Based on countries, the market is segmented into Germany, UK, France, Russia, Spain, Italy, and Rest of Europe.

List of Key Companies Profiled
  • Accenture PLC
  • Capgemini SE
  • Infosys Limited
  • Cognizant Technology Solutions Corporation
  • Tata Consultancy Services Ltd.
  • Wipro Limited
  • HCL Technologies Ltd. (HCL Enterprises)
  • IBM Corporation
  • Teleperformance SE
  • Concentrix Corporation
Europe Outsourcing Services Market Report Segmentation

By Type
  • IT Outsourcing
  • Business Process Outsourcing
  • Knowledge Process Outsourcing
  • Engineering Services Outsourcing
  • Other Type
By Industry Vertical
  • BFSI (Banking, Financial Services & Insurance)
  • IT & Telecommunications
  • Healthcare & Life Sciences
  • Retail & E-commerce
  • Manufacturing
  • Government & Public Sector
  • Transportation & Logistics
  • Other Industry Vertical
By Deployment Type
  • Onshore Outsourcing
  • Offshore Outsourcing
  • Nearshore Outsourcing
  • Other Deployment Type
By Country
  • Germany
  • UK
  • France
  • Russia
  • Spain
  • Italy
  • Rest of Europe

Table of Contents

228 Pages
Chapter 1. Market Scope & Methodology
1.1 Market Definition
1.2 Objectives
1.3 Market Scope
1.4 Segmentation
1.4.1 Europe Outsourcing Services Market, by Type
1.4.2 Europe Outsourcing Services Market, by Industry Vertical
1.4.3 Europe Outsourcing Services Market, by Deployment Type
1.4.4 Europe Outsourcing Services Market, by Country
1.5 Methodology for the research
Chapter 2. Market at a Glance
2.1 Key Highlights
Chapter 3. Market Overview
3.1 Introduction
3.1.1 Overview
3.1.1.1 Market Composition and Scenario
3.2 Key Factors Impacting the Market
3.2.1 Market Drivers
3.2.2 Market Restraints
3.2.3 Market Opportunities
3.2.4 Market Challenges
Chapter 4. Competition Analysis - Global
4.1 KBV Cardinal Matrix
4.2 Recent Industry Wide Strategic Developments
4.2.1 Partnerships, Collaborations and Agreements
4.2.2 Product Launches and Product Expansions
4.2.3 Acquisition and Mergers
4.3 Market Share Analysis, 2024
4.4 Top Winning Strategies
4.4.1 Key Leading Strategies: Percentage Distribution (2021-2025)
4.4.2 Key Strategic Move: (Partnerships, Collaborations & Agreements: 2023, Mar – 2025, May) Leading Players
4.5 Porter Five Forces Analysis
Chapter 5. Value Chain Analysis of Outsourcing Services Market
5.1 Market Research & Opportunity Identification
5.2 Vendor Selection & Contracting
5.3 Service Transition & Knowledge Transfer
5.4 Service Delivery & Execution
5.5 Quality Control & Compliance Management
5.6 Client Relationship & Account Management
5.7 Technology Integration & Innovation
5.8 Scalability & Resource Optimization
5.9 Performance Analysis & Continuous Improvement
Chapter 6. Key Costumer Criteria of Outsourcing Services Market
Chapter 7. Europe Outsourcing Services Market by Type
7.1 Europe IT Outsourcing Market by Country
7.2 Europe Business Process Outsourcing Market by Country
7.3 Europe Knowledge Process Outsourcing Market by Country
7.4 Europe Engineering Services Outsourcing Market by Country
7.5 Europe Other Type Market by Country
Chapter 8. Europe Outsourcing Services Market by Industry Vertical
8.1 Europe BFSI (Banking, Financial Services & Insurance) Market by Country
8.2 Europe IT & Telecommunications Market by Country
8.3 Europe Healthcare & Life Sciences Market by Country
8.4 Europe Retail & E-commerce Market by Country
8.5 Europe Manufacturing Market by Country
8.6 Europe Government & Public Sector Market by Country
8.7 Europe Transportation & Logistics Market by Country
8.8 Europe Other Industry Vertical Market by Country
Chapter 9. Europe Outsourcing Services Market by Deployment Type
9.1 Europe Onshore Outsourcing Market by Country
9.2 Europe Offshore Outsourcing Market by Country
9.3 Europe Nearshore Outsourcing Market by Country
9.4 Europe Other Deployment Type Market by Country
Chapter 10. Europe Outsourcing Services Market by Country
10.1 UK Outsourcing Services Market
10.1.1 UK Outsourcing Services Market by Type
10.1.2 UK Outsourcing Services Market by Industry Vertical
10.1.3 UK Outsourcing Services Market by Deployment Type
10.2 Germany Outsourcing Services Market
10.2.1 Germany Outsourcing Services Market by Type
10.2.2 Germany Outsourcing Services Market by Industry Vertical
10.2.3 Germany Outsourcing Services Market by Deployment Type
10.3 France Outsourcing Services Market
10.3.1 France Outsourcing Services Market by Type
10.3.2 France Outsourcing Services Market by Industry Vertical
10.3.3 France Outsourcing Services Market by Deployment Type
10.4 Russia Outsourcing Services Market
10.4.1 Russia Outsourcing Services Market by Type
10.4.2 Russia Outsourcing Services Market by Industry Vertical
10.4.3 Russia Outsourcing Services Market by Deployment Type
10.5 Spain Outsourcing Services Market
10.5.1 Spain Outsourcing Services Market by Type
10.5.2 Spain Outsourcing Services Market by Industry Vertical
10.5.3 Spain Outsourcing Services Market by Deployment Type
10.6 Italy Outsourcing Services Market
10.6.1 Italy Outsourcing Services Market by Type
10.6.2 Italy Outsourcing Services Market by Industry Vertical
10.6.3 Italy Outsourcing Services Market by Deployment Type
10.7 Rest of Europe Outsourcing Services Market
10.7.1 Rest of Europe Outsourcing Services Market by Type
10.7.2 Rest of Europe Outsourcing Services Market by Industry Vertical
10.7.3 Rest of Europe Outsourcing Services Market by Deployment Type
Chapter 11. Company Profiles
11.1 Accenture PLC
11.1.1 Company Overview
11.1.2 Financial Analysis
11.1.3 Segmental Analysis
11.1.4 Recent strategies and developments:
11.1.4.1 Partnerships, Collaborations, and Agreements:
11.1.4.2 Product Launches and Product Expansions:
11.1.4.3 Acquisition and Mergers:
11.1.5 SWOT Analysis
11.2 Capgemini SE
11.2.1 Company Overview
11.2.2 Financial Analysis
11.2.3 Regional Analysis
11.2.4 Recent strategies and developments:
11.2.4.1 Partnerships, Collaborations, and Agreements:
11.2.5 SWOT Analysis
11.3 Infosys Limited
11.3.1 Company Overview
11.3.2 Financial Analysis
11.3.3 Segmental and Regional Analysis
11.3.4 Research & Development Expense
11.3.5 Recent strategies and developments:
11.3.5.1 Partnerships, Collaborations, and Agreements:
11.3.5.2 Product Launches and Product Expansions:
11.3.5.3 Acquisition and Mergers:
11.3.6 SWOT Analysis
11.4 Cognizant Technology Solutions Corporation
11.4.1 Company overview
11.4.2 Financial Analysis
11.4.3 Segmental and Regional Analysis
11.4.4 Recent strategies and developments:
11.4.4.1 Partnerships, Collaborations, and Agreements:
11.4.5 SWOT Analysis
11.5 Tata Consultancy Services Ltd.
11.5.1 Company Overview
11.5.2 Financial Analysis
11.5.3 Segmental and Regional Analysis
11.5.4 Research & Development Expenses
11.5.5 Recent strategies and developments:
11.5.5.1 Partnerships, Collaborations, and Agreements:
11.5.6 SWOT Analysis
11.6 Wipro Limited
11.6.1 Company Overview
11.6.2 Financial Analysis
11.6.3 Segmental and Regional Analysis
11.6.4 Research & Development Expenses
11.6.5 Recent strategies and developments:
11.6.5.1 Partnerships, Collaborations, and Agreements:
11.6.5.2 Acquisition and Mergers:
11.6.6 SWOT Analysis
11.7 HCL Technologies Ltd. (HCL Enterprises)
11.7.1 Company Overview
11.7.2 Financial Analysis
11.7.3 Segmental and Regional Analysis
11.7.4 Research & Development Expenses
11.7.5 Recent strategies and developments:
11.7.5.1 Partnerships, Collaborations, and Agreements:
11.7.6 SWOT Analysis
11.8 IBM Corporation
11.8.1 Company Overview
11.8.2 Financial Analysis
11.8.3 Regional & Segmental Analysis
11.8.4 Research & Development Expenses
11.8.5 SWOT Analysis
11.9 Teleperformance SE
11.9.1 Company Overview
11.9.2 Financial Analysis
11.9.3 Segmental Analysis
11.9.4 Recent strategies and developments:
11.9.4.1 Partnerships, Collaborations, and Agreements:
11.9.4.2 Product Launches and Product Expansions:
11.9.4.3 Acquisition and Mergers:
11.9.5 SWOT Analysis
11.10. Concentrix Corporation
11.10.1 Company Overview
11.10.2 Financial Analysis
11.10.3 Regional Analysis
11.10.4 Recent strategies and developments:
11.10.4.1 Product Launches and Product Expansions:
11.10.4.2 Acquisition and Mergers:

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