Quick Summary: Outsourcing is an important strategy for businesses seeking to improve efficiency and reduce costs. In this article, we'll explore the latest outsourcing facts and statistics for 2023 to help businesses stay informed and competitive in a constantly evolving global market.
More & more companies across the globe are choosing the IT 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, offshore software development is a strong topic of debate. Therefore, to make things clear, let’s explore a variety of outsourcing facts & statistics that you should know!
Key Takeaways on Outsourcing Facts & Statistics
- Outsourcing continues to be a popular strategy for businesses looking to reduce costs and increase efficiency.
- The outsourcing landscape is constantly evolving, with the ongoing effects of the COVID-19 pandemic and other global events having an impact on outsourcing trends.
- Outsourcing can provide businesses with access to a broader pool of talent, specialized skills, and technologies that may not be available in-house.
- It's important for businesses to stay informed about the latest outsourcing facts and statistics to make informed decisions and stay competitive in a global market.
(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, the Middle East, and Africa constitute 35%. The remaining 23% comes from Oceania & Asia!
(b) Why do 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 $45.6 in 2000 to $85.6 in 2018.
- According to Insight, 65% of businesses are likely to continue with the same IT 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 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 revenue of $154 billion in the year 2017.
- Outsourcing to India 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), Business Process Outsourcing (BPO), and Digital Marketing Services dominate 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 software 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 the most popular outsourcing services!
- Mobile application development
- Mobile application maintenance
- Customer Support
- Datacenter operations
- Database Administration
- System support
- Disaster recovery
- Network operations
- Web hosting
- Web operations
Recommended Read: Which are the Most Popular IT Outsourcing Services?
(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 to set up an offshore development center because of its cost-effectiveness and talented professional availability.
- Global IT revenue reached 62 billion U.S. dollars in 2018.
- In fact, India holds 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! and if you are looking for outsourcing options then check how to opt for software outsourcing for your business in 2023
Note: This blog was originally published on May 2, 2019, and Updated on
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