Every business seeks to cut costs and maintain high efficiency, and that’s where outsourcing comes in. Outsourcing companies globally harness the industry’s ideas, skills, and Workforce. Developing and developing countries alike use this business model. It takes up a large chunk of their economic spending. International corporations delegate specific jobs offshore to get them done at a lower cost.
Outsourcing plays a crucial role in the success of many businesses today. Outsourcing specific tasks helps the company offset certain running costs, allowing it to focus on other important business areas. Organizations can save staff training and payroll costs by delegating specific business operations to external firms. These outsourcing statistics will expose you to every critical fact you need to know about business outsourcing, including its potential future trends. Let’s plunge in.
Key Statistics
General Outsourcing Statistics
1. Just Around 300,000 Jobs Are Outsourced Yearly in the United States.
Outsourcing gains a large audience in the United States every year. Many blame the low availability of outsourcing jobs; up to 300,000 jobs are outsourced yearly. However, outsourcing certain IT services helps reduce costs, allowing companies to perform better in other operations. Employees can also benefit from a pay raise and support.
2. Majorly, IT and Business Sectors Overtake Outsourcing.
For a long time, the industry has been overtaken by IT outsourcing, such as cybersecurity. Another core area is business, including bookkeeping, payroll, and accounting. This business model saved 29.2% of companies from hitting the rocks in 2019.
3. The Global Outsourcing Market Reached $92.5 Billion At the Close of 2019.
Outsourcing areas like healthcare, retail, business, and energy yielded $92.5 billion 2019. This high yield came as businesses bid to cut costs. The result is that companies’ executives focus on core business areas.
4. RPA is the Preferred Choice in Boasting Work Productivity for 64% of Companies.
The emergence of robotic automation has helped to shift workers’ focus to value-added activities. Across the globe, 64% of companies adopt the model, which reduces costs and enhances work quality and customer satisfaction.
5. Outsourcing on the Global Stage was Worth $92.5 Billion as of 2019.
The delicate act of contracting business processes internally or externally gained traction in 2019. It was valued globally at $92.5 billion. This was a good turnover, adding about $7 billion from the past year.
Outsourcing Resultant Effect Statistics
6. Around 89% of Companies Will not Implement Strategic Planning For Outsourcing.
Putting business strategic plans in the hands of others can have dire consequences. About 89% of businesses do not consider outsourcing their strategic planning. Most companies fear losing control over the quality of production and costs.
7. As Many as 50% of Companies Blame Outsourcing for Reduced Quality.
The lowering of the standard of product quality is seen as a result of outsourcing by 50% of companies. This class believes that the only way to keep product quality in check is to let go of outsourcing.
8. The Security of Data Tends to Pose Many Problems in Outsourcing.
Data security is one of the many issues faced by outsourcing companies. It is a source of worry for 68% of businesses changing to cloud technology.
9. Up to 61.1% of Firms View Outsourcing as a Way Forward In Business.
Quite a few companies have signed up for outsourcing services. Up to 61.1% of large firms with staff strengths of 10,001 to 50,001 outsource.
10. Over 50% of Small Companies Intend to Take on the Path of Outsourcing.
Around 51.6% of small companies have outsourced some of their activities. Many of these companies have staff between 1,000 and 10,000 at most.
11. 78% of Businesses Have a Positive Vibe Toward Outsourcing Partners.
Most companies undergoing outsourcing are comfortable with their partners. There is a positive synergy between 78% of businesses and outsourcing partners.
Small Companies Outsourcing Statistics
12. As High as 66% of Large Companies Will Likely Take on Outsourcing.
Outsourcing is practiced mainly by companies with a large workforce. Up to 66% of large corporations are likely to walk the path of outsourcing.
13. More Than 1 Out of Every Three Small Companies Outsource a Business Process.
In 2019, more than one in three small businesses was willing to outsource part of their business. However, just 52% of companies will likely follow this path shortly.
14. Outsourcing is Taken Up By 24% of Small Businesses for Better Efficiency
Outsourcing is the way forward for 24% of small businesses. It can increase work efficiency, provide access to skilled workers, and relieve stress.
15. 83% of IT Firms Stepped Forward to Outsourcing Security to Managed Service Providers In 2021.
According to statistics, In 2021, outsourcing security seemed an excellent option for handling cybersecurity. Up to 83% of IT executives outsourced their security with the help of MSPs.
16. BPO, or Business Process Outsourcing, Carted off With $26 Billion In 2019.
The business process arm of outsourcing generated tremendous revenue in 2019, raising $26 billion worldwide.
17. Businesses in the United States Are More Likely to Outsource to Developing Countries.
United States businesses tend to bend toward outsourcing financially unstable countries. Around 68% of companies outsource accounting and IT services.
Human Resource Outsourcing Statistics
18. With 45%, Consulting is the Most Rampant Service Offered by HR Companies.
Human resource companies offer outsourcing consulting 45% of the time. Others offered include administration, with 36%, and time tracking, with 24%. Insurance companies provide insurance services 19% of the time and deliver performance management 10% of the time.
19. Recruiting is a Primary Concern for 51% of Companies That Outsource HR.
The strain of recruiting is a significant reason many companies outsource. Up to 51% of businesses would instead outsource than hire new regular staff.
20. Suppliers that Provide Outsourcing Services Are Ideal for 44% of Business CIOs.
44% of companies’ CIOs prefer to work with a supplier that offers outsourcing services. This shows the level of trust IT experts have in the outsourcing industry.
21. Over 40% of Bank Customer Care Desk Workers Are Outsourced.
A good number of bank help desk staff are outsourced. They tend to hold 40% of the entire customer care unit in the banking industry.
22. Robotic Process Automation Was Valued At $3.7 Billion as of 2022.
As more businesses use the model, the RPA market value will increase. At the close of 2022, it rose to $3.7 billion. This will likely increase further in the coming years, reaching $81.8 billion by 2032.
Outsourcing Latest Trends
23. Up To 58.8% of Marketers Feel That COVID-19 Did Not Change the Scope of Outsourcing.
The pandemic affected several sectors of the global economy. However, at 58.8%, this did not significantly affect the outsourcing industry. Many companies seek out expatriates as they focus on other areas of business.
24. Robotic Processing Adoption Has Risen By 5% After the Covid Pandemic.
The adoption of RPA has increased by 5%. More companies have started using robotic processes after the pandemic.
25. The Tech Industry is leading the Outsourcing Market With a 54% Share.
Outsourcing continues to increase with each passing year in the technology industry. It currently occupies a 54% share of the global outsourcing market, which will most likely grow in 2025 to reach $108 billion, close to 2024. The finance sector is the next biggest in the world in outsourcing, with a market share of 44%. Third place is taken by customer service, with a mere 22%.
26. Maintaining High Standards is a Significant Reason Businesses Turn to Outsourcing.
Keeping up with high standards is a necessity in the competitive business world. Companies turn to hiring outsourced experts to reap excellent service delivery. Small businesses outsource in a bid to save both time and increase productivity. Resources are scarce and are better used for more efficiency.
Additional Outsourcing Statistics
27. The Average IT Budget of the United States Rose By 13.6%.
At the close of 2020, the United States IT budget increased by 13.6%, quite a jump from its 12.7% the previous year. This meant that more companies had to rely on outsourcing as an alternative.
28. Customer Experience Outsourcing Market Made $90.87 Billion At the End of 2022.
The global CX market raised $90.87 billion at the close of 2022. This will most likely increase in the coming years to reach $173.68 billion by the end of 2029. Its recent growth is a result of more focus on corporate plans.
29. Up To 36% of the Workforce in the United States Works Remotely.
A good percentage of the United States workforce are freelancers. Approximately 36% of workers identify themselves as gig workers, and companies often seek out these workers for outsourcing jobs.
30. Manufacturers in the United States Are Fond of Outsourcing Between 70% and 80% of Finished Product Content.
Many manufacturers outsource so they can have time to focus on more important things like design and marketing. Manufacturers in the United States are outsourcing up to 70% to 80% of finished product content.
31. India is the Destination For a Whole Lot of Outsourcing Services.
India is the most sought-after place for outsourcing. Countries whose lingua franca is the English language are the biggest clients of the Indian outsourcing market. Up to 62% of all Indian IT outsourcing revenue is from the United States. The United Kingdom takes the second spot with 17%, leaving other parts of Europe with 11%.
Conclusion
The business world has gone global, and companies are doing their best, especially in outsourcing. It is the way forward for many companies. Firms can handle some tasks they would have lightly catered themselves. Countries like the United States are making the best of outsourcing. Marketers actively seek suppliers with an outsourcing flair.
Firms in the IT sectors are cashing out on outsourcing in cyber security. Other industries, such as marketing, human resources, customer service, and accounting, use outsourced services. With outsourcing, companies leverage each other to get the best output. Given the growing interest in this business model worldwide, experts expect more growth in outsourcing in the coming years.
FAQs
The global market will most likely reach $0.47 trillion in revenue by the end of 2025. Companies in the United States are expected to raise a large chunk of this money ($134.30 billion).
IT, customer service, marketing, accounting, and design companies use more outsourced workers.
Businesses are always on the lookout for new ways to increase efficiency. As high as 66% of big companies use outsourcing services. This is far lower in smaller businesses, with just 24% opting for outsourcing.
According to statistics, big cities like California have had to bear substantial job losses due to outsourcing by companies. The taking on of outsourcing by Silicon Valley in 2001 resulted in massive job loss. During the period, companies lost up to 562,500 jobs.
Businesses benefit from work flexibility, efficiency, lower costs, cost control, and more. It is an ideal way for businesses to upscale the market.
