Outsourcing Statistics By Marketing, Cybersecurity, Cost Saving, Benefits, Regions, Finance And Accounting

Introduction

Outsourcing Statistics: Outsourcing is a common business practice that helps companies work more efficiently by allowing employees to focus on their main tasks while saving costs. Today, outsourcing is a global industry, with businesses of all sizes and sectors using outsourcing services to improve their operations. Businesses of all sizes, from small shops to large companies, are outsourcing tasks to stay competitive.

This includes services like IT support, app development, and other business operations. Outsourcing has become a key strategy for success. In 2023, global outsourcing spending was expected to reach $731 billion. In this article, we will explore key Outsourcing Statistics from 2024 to 2027, including the global market, revenue, and the latest trends.

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• The global outsourcing market reached $971.2 billion in 2023, growing by 7.77% from $901.1 billion in 2022.
• Around 60% of businesses outsource software development and maintenance to third parties.
• Every year, about 300,000 jobs are outsourced from the United States.
• Reducing costs is the main reason for outsourcing, with up to 70% of businesses outsourcing for this reason.
• 37% of small businesses outsource at least one of their processes.
• Outsourcing Statistics stated that almost 59% of companies in the Global 2000 (G2000) have contracts for business process outsourcing (BPO), showing how much outsourcing is used in the industry.
• The BPO market is expected to grow to $525 billion by 2030.
• In 2023, Global Business Services (GBS) organizations reached an 82% efficiency rate through standardization.
• For 27% of modern businesses, the main reason to outsource is to save money.
• The BPO industry is expected to grow at a rate of 10.1% each year, reaching $492.45 billion by 2028, up from $251.1 billion in 2021.
• Global spending on outsourcing is predicted to reach $1,138 billion by 2025.

General Outsourcing Statistics

• Global outsourcing spending was expected to reach $731 billion in 2023.
• The IT outsourcing industry is projected to grow to $777.74 billion by 2028.
• 54% of businesses report that the quality of service stays the same after outsourcing.
• Nearly 84.2% of outsourcing agreements start in the US.
• Over 1 million people in China join the outsourcing industry each year.
• The business process outsourcing (BPO) market is estimated to be worth over $400 billion by 2027. Around the world, 75% of outsourcing contracts focus on IT services.
• Outsourcing Statistics stated that almost 92% of the top 2000 companies (G2000) outsource their IT work.
• 60% of all manufactured products are outsourced.
• China has more than 6,600 outsourcing companies.
• 59% of G2000 companies have outsourcing contracts for business processes.
• Nearly 78% of companies have good relationships with their outsourcing partners.
• The worldwide outsourcing industry was valued at $93.5 billion in 2020.
• The BPO market was valued at $245.9 billion in 2021 and is expected to grow by 9.1% annually from 2022 to 2030.
• About 300,000 jobs are outsourced from the United States each year.
• Almost 92% of the top 2000 global companies (G2000) use IT outsourcing.
• 90% of businesses consider cloud computing important for their outsourcing strategies.

(Reference: microsourcing.com)

• 57% of businesses outsource to focus on their main strengths.
• Outsourcing Statistics stated that almost 40% of help desk jobs in the banking sector are outsourced.
• 34% of B2B companies in the UK outsource IT support, making it the most outsourced service there.
• Almost 24% of small businesses outsource to improve their operations.
• 37% of small businesses use outsourcing.
• Nearly 51% of companies outsource to access new skills and expertise.
• 49% of businesses outsource to stay aligned with changes in their strategy or operations.

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Global IT Outsourcing Statistics

• The value of the IT outsourcing market is currently $617.69 billion (Mordor Intelligence).
• It is expected to grow to $806.53 billion by 2029 (Mordor Intelligence).
• 64% of IT leaders around the world outsource their software development (Statista).

(Source: joingenius.com)

• 92% of the world’s top 2,000 companies hire outside help for their IT tasks.

(Source: joingenius.com)

• Outsourcing Statistics stated that almost 76% of company leaders outsource their IT functions.
• According to Grand View Research, the global market for IT services was valued at USD 821.58 billion in 2022 and is expected to grow at a 9.1% annual growth rate (CAGR) from 2023 to 2030.
• By 2030, the market for IT and software outsourcing is projected to reach USD 1.06 trillion.
• By 2023, the value of software outsourcing is expected to reach USD 430 billion.
• According to Statista, the software outsourcing market is expected to grow at a 7.54% annual growth rate between 2023 and 2027, and by 2028, the annual revenue will reach USD 303.90 billion.
• Cloud-based software solutions are expected to reach USD 141.2 billion by 2027.
• Outsourcing is predicted to grow by 70% by 2032, with 36% of businesses planning to outsource their software development.
• Outsourcing Statistics stated that almost 50% of the total global outsourcing value comes from companies that focus on software outsourcing.
• In 2023, the average spending on IT outsourcing per employee was estimated at USD 120.50.
• The outsourcing of IT services reached $30.4 billion in 2023, growing by 13% compared to the previous year, making it the best year yet. However, outsourcing for business services dropped by 14%, earning $10.3 billion.
• By outsourcing IT, businesses can save up to $6,474 each month, which is an 85% reduction in costs.

(Reference: joingenius.com)

Nations	Avg. Salary
India	USD 324
Brazil	$388
Philippines	$395
Argentina	$528
Vietnam	$589
Malaysia	$852
Mexico	$1,378
Ukraine	$1,450
Poland	$2,285
China	$2,499
United States	$7,431

• Outsourcing Statistics stated that almost 20% of companies in the US send all their IT support work to other countries.
• Globe Newswise reports that the global IT outsourcing market was valued at USD 318.5 billion in 2020 and is expected to reach USD 425.19 billion by 2026, growing at a CAGR of 4.5% from 2021 to 2026.
• Imaginovation estimates that IT outsourcing spending will exceed USD 1.3 trillion by 2023.
• Korn Ferry suggests that India could become the most advanced country in technology by 2030.
• By 2025, 60% of companies plan to end their current BPO contracts due to outdated pricing.

Marketing Outsourcing Statistics

• Almost half (49%) of companies hire external services for content writing.

(Reference: bloggingwizard.com)

• Outsourcing Statistics showed that 14% of companies don’t create content at all, which means 37% of companies do not outsource content writing.

Of the 49% of companies that do outsource content writing:

• 37% use a mix of in-house writers and external services.
• 12% outsource all their content writing.
• 12% of these outsourcing companies are in the software-as-a-service (SaaS) sector.

Among the 51% of companies that don’t outsource content writing, 9% are in the technology and software engineering field. Here’s a breakdown of how other industries manage content writing internally:

• Technology and software engineering: 9%
• Marketing and sales: 8%
• Retail: 8%
• Healthcare: 7%
• Education: 7%
• Manufacturing and production: 6%
• SaaS: 5%
• Technology and hardware: 5%
• Travel: 4%
• Media and publishing: 4%
• E-commerce: 4%
• Food: 4%
• Finance: 3%
• Real estate: 2%

Outsourcing Statistics stated that almost 47% of companies that outsource content writing work with trusted freelancers who have strong reputations and references.

(Reference: bloggingwizard.com)

• 27% of companies outsource content writing to digital marketing and content marketing agencies.
• 24% hire content writing service providers.
• 17% use freelance writers from gig websites.
• Outsourcing Statistics stated that almost 12% use AI tools for writing.
• 4% use other methods like guest bloggers, expert writers, or PR agencies.
• For companies that manage content writing in-house:

#1. 40% of companies that use in-house content writing have only one person responsible for marketing.

#2. 28% have two to five people on their marketing team.

#3. 9% have six to 10 team members.

#4. 10% have more than 11 marketing employees.

#5. 13% do not handle content writing internally.

• For companies that outsource content writing:

#1. 37% have between two and five people in their marketing team.

#2. 15% have just one person in marketing.

#3. 14% have between six and ten marketing employees.

#4. 14% have between 11 and 20 people in marketing.

#5. 11% have 21 to 50 marketing staff members.

#6. 5% have 51 to 100 people in marketing.

#7. 4% have more than 100 marketing employees.

• This shows that companies outsourcing content writing tend to have larger teams to produce more content and manage bigger marketing projects.

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Cybersecurity Outsourcing Statistics

• Outsourcing Statistics predicts that by 2025, a lack of skilled professionals will cause over half of all major cyber incidents. As a result, 93% of organizations plan to outsource some of their security operations to outside vendors in the next two years.
• 42% of companies’ total risk management budgets are spent on security services like consulting, IT outsourcing, implementation, and hardware support. This amount is expected to increase to $90 billion in 2024, which is an 11% rise from 2023.

(Source: joingenius.com)

• Industries that frequently outsource app development include:

#1. 80% in retail and wholesale distribution

#2. 79% in utilities

#3. 74% in manufacturing

#4. 66% in financial services

#5. 50% in tech services

#6. 39% in the public sector and healthcare

• About 69% of businesses say outsourcing app development costs them the same or less than doing it in-house.
• However, only 54% of clients believe that the quality of outsourced services is as good as or better than what their internal teams could provide.

Cost Saving And Benefits Of Outsourcing Statistics.

• Outsourcing can help companies save a lot of money in different areas:
• Businesses can reduce operational costs by up to 60% through outsourcing.
• Outsourcing HR functions can save around 32%.
• Outsourcing manufacturing can lower costs by as much as 60%.
• HR outsourcing can cut HR costs by 27%.
• Outsourcing Statistics stated that outsourcing data entry can reduce costs by up to 50%.
• Outsourcing customer service can boost customer retention by 42%.
• Outsourcing digital marketing can result in 3 times more leads.

(Reference: kruschecompany.com)

• Outsourcing document management can cut processing time by 40%.
• Outsourcing logistics and supply chain management can lower costs by 15-20%.
• Outsourcing market research can speed up project completion by 30%.
• Voice-based BPO outsourcing can save up to 50% on costs.
• Outsourcing document processing can reduce errors by 60%.

(Source: kruschecompany.com)

• Outsourcing market research and analysis can improve data accuracy by 25%.
• Outsourcing back-office tasks can improve efficiency by 45%.
• Outsourcing data analytics can help speed up decision-making by 60%.
• Outsourcing legal research can cut costs by 30%.
• Outsourcing software maintenance can increase system uptime by 20%.
• According to PwC, 87% of companies say the main reason they outsource is to reduce costs.
• Deloitte states that 59% of businesses outsource to cut down on overhead.

Outsourcing By Industry Statistics

• The military sector is the largest when it comes to outsourcing, making $100 billion in revenue.
• For small businesses, the most common tasks they outsource include:

#1. Accounting

#2. IT services (34%)

#3. Digital marketing (34%)

#4. Human resources (HR) (24%)

• Other industries that outsource a significant amount of work include:

#1. Construction (8%)

#2. Education (11%)

#3. Healthcare (9%)

#4. Information services (5%)

#5. Finance and insurance (5%)

(Source: explodingtopics.com)

• Additionally:

#1. Agriculture, marketing and sales, software, arts and entertainment, and retail each account for 4% of outsourced industries.

#2. Telecommunications represents 3%.

#3. Technical services make up 2%.

#4. The remaining 11% of outsourced work comes from other industries.

• Other specific services outsourced by small businesses include:

#1. Payroll services (28%)

#2. Printing services (24%)

#3. Lead generation.

Regional Outsourcing Statistics

(Reference: 99firms.com)

• The IT Outsourcing market is expected to generate $541.10 billion in 2024.
• The market is predicted to grow at an annual rate of 8.48% from 2024 to 2029, reaching $812.70 billion by 2029.
• The median expenditure of each employee in the Information Technology Outsourcing market is expected to be $153.00 in 2024.
• The United States will lead in revenue generation, with an estimated $197.30 billion in 2024.

Creative Production Outsourcing Statistics

• Nearly 55% of companies that still need to outsource creative production plan to do so within the next 12 months.
• More than 50% of businesses are putting money into the in-house agency model for creative production.
• Around 73% of the companies surveyed agree that outsourcing creative production is very important.
• About 68% of offshore companies handle at least 10% of all creative production work.
• According to We Are Amnet, 81% of companies that outsource creative production say access to lower-cost skills and resources is one of the top reasons.
• Outsourcing Statistics stated that almost 27% of businesses say “Access to 24/7 resources” is their main reason for outsourcing.
• At least 20% of creative production tasks are managed through outsourcing.

Outsourcing In Finance And Accounting

• A Statista survey shows that 55% of businesses in Latin America currently outsource their back-office operations.
• Outsourcing Statistics stated that almost 2% plan to start outsourcing within the next year, while 6% are considering it for the long term.
• In North America, 22% of businesses outsource now, 2% plan to outsource soon, and 6% plan to do so in the future.
• In the European Union, 17% of businesses currently outsource, with 1% planning to outsource in the next year and 4% thinking about it long-term.
• In the developed Asia-Pacific (APAC) region, 15% of businesses are outsourcing now, but none plan to start in the next 12 months, though 5% are thinking of long-term outsourcing.
• In emerging APAC, 13% of businesses outsource, 3% plan to do so in the short term, and 8% are considering it for the long run.
• In Africa, 9% of companies are outsourcing, 3% plan to outsource in the next year, and 13% are thinking about long-term outsourcing.
• On a global level, 19% of businesses are outsourcing, 6% plan to start in the next year, and only 2% are considering long-term outsourcing.

Conclusion

The outsourcing industry is large and continues to grow. The COVID-19 pandemic showed businesses that many tasks can be done remotely. While saving money is the main reason companies outsource, finding skilled workers and talent is also an important factor, according to outsourcing growth data.

Another benefit is that work can keep going around the clock when tasks are spread across different countries, with someone always available to work. This is especially helpful when outsourcing to countries with lower wages and an educated workforce.