Outsourcing Facts & Statistics You Need To Know!

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!

Outsourcing Facts and Statistics You Need To Know -YourTeaminIndia

 

(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: 

  1. India
  2. China
  3. Malaysia
  4. Indonesia
  5. Brazil
  6. Vietnam
  7. Philippines
  8. Thailand
  9. Chile
  10. 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?

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