Outsourcing Statistics 2024 By Outsourcing in HR, Payroll, Operational, Manufacturing, Software Development and Creative Production
WHAT WE HAVE ON THIS PAGE
- 1 Introduction
- 2 Editor’s Choice
- 3 Current Outstanding Statistics 2023-2024
- 4 I.T. Outsourcing Market Overview for 2024
- 5 Outsourcing Statistics by Jobs Lost to Outsourcing
- 6 Operational Outsourcing Statistics
- 7 Manufacturing Outsourcing Statistics
- 8 Human Resources Outsourcing
- 9 Global Outsourcing Trends and Industry Value.
- 10 Payroll Outsourcing
- 11 Software Development Outsourcing Statistics.
- 12 Creative Production Outsourcing Insights
- 13 Final Thought
Introduction
Outsourcing Statistics: Outsource Software Development has become a top-rated service for all business types. It is in high demand for developers and I.T. specialists in various digital transformations, profiles, and technology development. Outsourcing services are pertinent for global corporations, small businesses, and startups.
The client businesses have also refined their way of approaching outstanding. Since the 1980s, when Outsourcing started to become mainstream, the global sector has also developed and is stable. After the COVID-19 pandemic, an increase in acceptance and pervasiveness of remote work is an additional headwind in favor of Outsourcing. In this article, we will be studying in detail about Outstanding Statistics.
Editor’s Choice
- Between 2023 and 2027, the value of the Outsourcing sector is forecasted to grow by USD 75.89 trillion, with an annual growth rate of CAGR 6.5%.
- 66% of the businesses in the United States have outsourced one process.
- By 2023, the average cost of an employee is expected to reach USD 100.50.
- The outsourcing industry is anticipated to expand at a compound annual growth rate of 4%.
- The global spending on the outstanding is estimated at USD 731 billion in 2023.
- About one million new employees join the Outsourcing services industry in China every year.
- In the United States, about 3,00,000 jobs are outsourced every year.
- The cost of hiring in-house staff has been reduced. Therefore, 70% of the companies find outsourcing very cost-effective.
- The United States market generates USD 62 billion of the total international income from USD 92.5 billion in global outsourcing businesses.
- Almost 92% of G2000 companies use I.T. Outsourcing.
- Globally, 78% of companies that outsource work have a positive attitude towards outsourcing partners.
- As businesses collaborate with contractors, business process outsourcing will reach a value of USD 620 billion by 2032.
- 9% of the Philippines’ GDP comes from business process outsourcing.
- 37% of the small businesses outsourced at least one business process.
- 70% of the companies find outsourcing cost-effective, as it reduces the costs of hiring in-house staff.
- IBM is the most prominent outsourcing company worldwide and has a workforce of 383,800.
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Current Outstanding Statistics 2023-2024
- By the end of 2023, the global market of Outsourcing ad-shared services will spend about USD 971.2 billion and have a CAGR rate of 6.5%.
- Almost 3,00,000 jobs are outsourced out of the United States every year.
- At the end of 2022,85% of the companies have already adopted cloud services, and the data shows that a third of all organizations are willing to adopt an increase in operating costs.
- 71% of financial service officials outsource or offshore some of their services.
- About 94% of manipulating service providers innovate the data using Artificial Intelligence and machine learning technology.
- Organizations are exploiting service providers to innovate the data by developing Artificial Intelligence.
- Data security is a top concern for 68% of outsourcing organizations considering moving to cloud technology.
- Almost 44% of the chief intelligence professionals say that they are now more likely to use outsourcing suppliers than they were just five years old.
- About 45% of the organizations outsourcing I.T. functions say that their information technology outsourcing projects are meant to save money.
- 2023, the global I.T. outsourcing market revenue will reach USD 460.10 billion.
- 2023, the global financial and accounting business process outsourcing market is expected to reach USD 60.31 billion.
- Since 2001, more than 654,093 Californians have lost their jobs to China.
- 80% of organizations and institutes are executing robotic process automation.
I.T. Outsourcing Market Overview for 2024
- In 2023, employee spending on I.T. outsourcing was USD 132.10 billion, reaching USD 777.70 billion by 2028. Its CAGR will also be 11.07%.
- The United States is forecasted to contribute the most significant portion of the market revenue at USD 167.90 billion in 2023.
- About 75% of the executives say that I.T. outsourcing is essential. Infrastructure services, apps, software development, and cybersecurity are the top 3.
(Source: kruschecompany.com)
- Web hosting, software development, and administration outsourcing are the top three categories in I.T. outsourcing, with 63.5% of the market’s total worth.
- Companies are investing more and more in Information Technology outsourcing services.
Outsourcing Statistics by Jobs Lost to Outsourcing
- Highly-paying firms that require an advanced education, as well as refined skills, are among the top 10 industries outsourcing to the overseas market. The annual wages for this job vary between USD 26,350 and USD 100,640.
- The estimate is that 92% of businesses that operate in North America engage in I.T. outsourcing.
- According to Princeton research, about one-fifth of job opportunities available that are available in America U.S. can potentially be lost due to Outsourcing.
- I.T. Outsourcing accounted for a total amount of USD 66.5 billion in the year 2019.
Operational Outsourcing Statistics
- In 2030, the BPO market value is projected to reach a high of 526 billion dollars at a rate of 9.4 percent.
- 27% of companies that use RPA have reported a 10% to -20 percent operational savings.
- In its survey for 2021-2022, Clutch also found the fact that 24% of small-sized companies outsourcing their digital marketing departments.
- In 2030, the world market for call centers will hit USD 741.7 billion.
- It is estimated that the BPO financial services sector is estimated around USD 130 billion.
- The sector of banking outsources over 40% of jobs at the help desk.
- HR consulting services are one of the most commonly used services HRO organizations use, and have a rate being 45 percent.
Manufacturing Outsourcing Statistics
- China is still the world’s manufacturing powerhouse, with 28.7% of the total output.
- In Southeast Asia, Nike outsources its production to 500,000 employees.
- Public Citizen, through research, revealed the reality of the job market during and after the COVID USD 740,000.
- About 85% of Apple’s sellers operate their manufacturing facilities in Asia.
- In 2022, a recent survey shows half of all organizations increased their manufacturing outsourcing.
Human Resources Outsourcing
- 80% of the organizations outsource at least 1 H.R. function.
- Organizations can save an average of 22% by outstanding H.R. operations.
- About 32% of United States companies outsource at least one H.R. task.
- Outsourcing Human Resource operations can lead to a 10% to 12% reduction in the H.R. staff size.
- About 77% of H.R. managers and specialists acknowledge Outsourcing.
- A 97% satisfaction rate is seen after outsourcing recruitment processes.
- About 87% of the companies outsource their H.R. operations.
- 68% of organizations recognize H.R. outsourcing as a way to enhance their employee’s experience and morale.
- 29% of human resource professionals think outsourcing H.R. functions gives them better access to seasoned experts.
Global Outsourcing Trends and Industry Value.
- India is rated as the most essential destination for outsourcing business services.
- By 2027, research and market statistics have found that the global sector for outstanding services will reach USD 904.948 billion.
- United Kingdom’s outsourcing statistics show that 67% of the U.K.’s startups outsourced their workforce.
- As per the survey in 2021, 2.83 and 2.18 on staff availability and financial landscape.
- As the ManpowerGroup poll was done in 2022, about 75% of the United States agencies need help detecting expert candidates.
- The outsourcing industry has gone from a revolution because of the technology. All the operations are being upgraded because of automation, cloud computing, and Artificial Intelligence.
- As per the study by Pew Research Centre, which was conducted in February 2023, 35% of the workers in the I.S. work remotely; thus, Outsourcing has become critical.
- The adaptability of the interconnection model is heightened to fulfill companies’ needs.
(Reference: truelist.co)
- Statistics on India’s outsourcing industry show that the developer rate is as low as USD 20 per hour.
- Companies’ processes Outsourcing to the Philippines statistics showcase 71000
- In 2022, Australia will have 33,523 business process outsourcing companies. This represents an increase of 2.5% on average in 2017 and 2022.
- In Australia, outsourcing statistics reveal wages are the highest cost in Outsourcing, taking up 53.35% of the budget.
- According to Outsourcing to China Statistics, China has over 6,000 outsourced firms.
- In 2019, Philippines business outsourced their processes, and the statistics reveal 71,000 new I.T.
- Canada’s outsourcing statistics show that one in 25 Canadian employees lose their jobs due to outstanding.
- In 2022, organizations will spend more money on IT outsourcing.67% FOR operating services, and 57% reported an increased budget for managed services.
- About 90% of the Global 2000 companies have held ongoing ITO contracts in the five years.
- In 2022, about 49.6% of the business planned to expand their Outsourcing.
- In 2023, startup software development outsourcing will increase by 70%.
- As per the survey, about 62% of respondents intend to renegotiate their outsourcing contracts.
Payroll Outsourcing
Payroll outsourcing is effective even for small businesses today. If we consider 2023 data, Small businesses should thoughtfully study the pros and cons of outsourcing payroll.
- Companies with over 50 workers are 66% more likely to outsource than small businesses.
- By 2025, the outsourced payroll market is forecasted to grow by 6.15 billion USD.
- About 25% of the workers suggest that they have received a paycheck with errors.
- 49% of the employees leave their company if they face two payroll mistakes.
- One-third of the small businesses report spending about 6 hours per month on payroll processing,
- About 10%-20% of the workers are missorted by their organizations.
- Between 2015 and 2019, the global payroll outsourcing market grew from 17% of business to 38%.
Software Development Outsourcing Statistics.
- As per Grand View Research, in 2022, the worldwide market size for I.T. professional services was worth USD 821.58 billion. From 2023 to 2030, it is projected to increase at a compound annual growth rate CAGR OF 9.1%.
- By 2030, the global market size for I.T. and software outsourcing is expected to reach USD 1.06 trillion.
- As per Technavio, the international outsourced Q.A. and software testing market is forecasted to experience a CAGR OF 11%.
- By 2023, the value of software outsourcing is expected to reach USD 430 billion.
- As per the Statista survey, software outsourcing revenue is anticipated to exhibit an annual growth rate of CAGR 7.54% in 2023-2027.
- By 2028, the revenue will demonstrate an annual growth rate CAGR of USD 303.90 billion in 2023-2028.
- As per Globe Newswise, the global market for I.T. outsourcing in 2020 was evaluated to be worth USD 318.5 billion. It is anticipated to reach $425.19 billion by 2026, with a CAGR OF 4.5% in the forecasted period 2021-2026.
- As per Imaginovation, it is projected that spending on I.T. outsourcing will exceed USD 1.3 trillion by 2023.
- T. Outsourcing spent will exceed USD 1.3 trillion by 2023.
- As per Korn Ferry, India might take the lead as the world’s most technologically competent nation by 2030.
- By 2025, 60% of the businesses will not renew their existing BPO contracts due to old prices.
- By 2027, Cloud-based software outstanding solutions will rise to USD 141.2 billion.
- Outsourcing: by 2032, Outsourcing is foreseen to increase by 70%, and companies are projected to outsource 36% of their software developers.
- As per Statista, 50% of the total value of global Outsourcing is generated by companies that specialize in software outsourcing.
- In 2023, employee spending on I.T. outsourcing was anticipated to average USD 120.50.
- About 81% of the executives depend on third-party vendors to furnish some or all of their cybersecurity capabilities.
Creative Production Outsourcing Insights
- Nearly 55% of the companies that still need to outsource creative production will do it in the next 12 months.
- More than 50% of organizations invest in the in-house agency model for creative production.
- About 73% of the companies surveyed agreed and believed that creative production outsourcing is essential.
- About 68% of the offshore companies manage at least 10% of all the creative production.
- As per We Are Amnet, 81% of the businesses offshoring creative production ranked access to lower-cost skills and resources in the top 2 drivers.
- 27% of companies have ranked “Access to 24/7 resource” first.
- At least 20% of all the creative production offshore has been managed using Outsourcing.
Final Thought
The Outsourcing industry is significant and growing gradually every year. Today, COVID-19 has become a tutor to all companies by proving that all the processes can be handled remotely. Talent-seeking and hiring highly skilled employees also play an essential part, whereas cost-cutting is the primary driver behind Outsourcing. Another great benefit of Outsourcing is the ability to continue production due to work hours if the tasks are dispersed.
Global Outsourcing for small companies, cloud services, BPO organizations, and payroll services has tremendously increased post-pandemic. The detailed information on worldwide outsourcing statistics makes you aware of the business growth and financial benefits that enable a focus on data security and service quality.
Sources
FAQ.
How do Americans feel about Outsourcing?
The average Citizen takes a less than favorable view of outsourcing.80% of Americans state that an increase in Outsourcing hurts American employees.
How many jobs are outsourced by the U.S. every year?
As per estimation, about 300,000 positions are outsourced per year.
Does Outsourcing save companies money?
Cost reduction is the biggest reason businesses relocate jobs overseas. About 70% cite cost reduction as the number 1 reason for Outsourcing.
How common is Outsourcing in the I.T. industry?
About 40% of help desk positions in the banking industry are held by outsourced employees.
Barry Elad
Barry is a lover of everything technology. Figuring out how the software works and creating content to shed more light on the value it offers users is his favorite pastime. When not evaluating apps or programs, he's busy trying out new healthy recipes, doing yoga, meditating, or taking nature walks with his little one.
