More & more companies across the globe are choosing the outsourcing strategy. There are a number of reasons behind it but cost-cutting is the prime reason. The other benefits of outsourcing are that it allows you to:
- Access to a wide talent pool of experts
- Focus on core business activities
- Flexibility to hire staff
- Offer round the clock service
Whether you are a startup or an established enterprise, outsourcing can help you gain an edge over your competitors. Still outsourcing is a strong topic of debate. Therefore, to make things clear, let’s explore a variety of outsourcing facts & statistics that you should know!
(a) Relationship with an Outsourcing Partner:
- According to the Deloitte 2016 Global Outsourcing Survey, 78% of business owners across the globe are satisfied with their outsourcing partner.
- North & South America constitutes 42% of the outsourcing buyer region. Europe, Middle East, and Africa constitute 35%. The remaining 23% comes from Oceania & Asia!
(b) Why Companies Outsource?
- 59% of companies outsource to reduce or control cost
- 57% do it to focus on business objectives
- 47% to solve capacity issues
- 31% to improve service quality
- 28% to take help from talented professionals
- 17% of their business environment
(c) Global Outsourcing Industry:
- According to Statista, the global market size of the outsourcing industry has reached from $45.6 in 2000 to $85.6 in 2018.
- According to insight, 65% of business will likely to continue with the same outsourcing partners.
- Application development is the most frequent outsourced service & 37% of organizations are planning to increase the amount of work they outsource.
- When it comes to value, approximately 84.2% of outsourcing deals were from the United States. The United Kingdom holds second place with 5.2 % outsourcing deals.
Below is the list of countries that are considered as the best outsourcing destinations based on cost-effectiveness, skills, and availability:
- India
- China
- Malaysia
- Indonesia
- Brazil
- Vietnam
- Philippines
- Thailand
- Chile
- Colombia
(d) Outsourcing in India:
According to NASSCOM:
- The IT-BPO industry in India has managed to aggregate the revenue of $154 billion in the year 2017.
- Over the upcoming five years, 40% of India’s workforce is expected to amplify their skills to meet the advanced requirements.
(e) Service Type:
Globally, IT outsourcing (ITO) and Business Process Outsourcing (BPO) dominates the outsourcing industry today.
IT Outsourcing:
- The global ITO industry in 2018’s revenue: $62 billion
- In 2017, the service outsourcing stats reached up to 31%.
- The total outsourcing budget increased from 10.6% in 2016 to 11.9% in 2017.
BPOs:
- The total revenue of the Business Process Outsourcing industry reached $23.6 billion in 2018.
- Moreover, the global market is estimated to reach $262.2 billion until the year 2022.
- The estimated market size of the customer experience in 2018 was $75.1 billion which is predicted to rise to $82.6 billion in 2020.
- 43% of UK companies outsource their email marketing services, and 32% choose in-house functions.
(f) Most Popular outsourcing Services:
Were you considering that outsourcing is just for data entry or BPO? Well, check out this list of most popular outsourcing services!
- Mobile application development
- Mobile application maintenance
- Customer Support
- Data center operations
- Database administration
- System support
- Disaster recovery
- Network operations
- Web hosting
- Web operations
(g) Cloud Technology:
- As per Outsourcing Insight, the cloud industry will reach up to $200 billion in value by the year 2018.
- The revenue of global cloud infrastructure is forecast to cultivate from $717 million in 2010 to $26 billion by 2020.
(h) Few More Facts About Outsourcing
- In 2017 and 2018 India is considered the best country for offshore development because of its cost-effectiveness and talented professional availability.
- Global IT revenue reached 62 billion U.S. dollars in 2018.
- In fact, India holds a position of 65% of the outsourced IT jobs.
- Furthermore, a prediction by Forrester Research moves to global business for IT outsourcing and hardware maintenance at approximately $503 billion in 2017.
Have you found any of the above outsourcing facts or statistics interesting? Share them on social media & tag us to know that you find them helpful!
To know more about why outsourcing is important, you can read this blog: How outsourcing has become inevitable for the success of organizations?