Outsourcing Statistics: In today's global economy, outsourcing plays a pivotal role in business operations, offering companies cost-effective solutions and access to specialized expertise. Recent statistics shed light on the widespread adoption and impact of outsourcing. According to data from Statista, the global outsourcing market was valued at USD 92.5 billion in 2021, with a projected growth rate of 5.84% from 2022 to 2028. Furthermore, a report by Deloitte revealed that 59% of companies outsource to cut costs, while 57% outsource to focus on core business functions. These figures underscore the significant role outsourcing plays in modern business strategies, driving efficiency and enabling organizations to stay competitive in a rapidly evolving landscape. As we delve deeper into outsourcing statistics, it becomes evident that its influence extends across industries and geographies, shaping the way businesses operate and thrive in today's interconnected world. Editor’s Choice The global spending on outsourcing surged to approximately USD 731 billion in 2023, reflecting its significant economic impact and widespread adoption across industries. An overwhelming 92% of G2000 companies leverage IT outsourcing services, emphasizing the prevalent reliance on outsourcing to meet technological needs. Business process outsourcing contributes significantly to the Philippines' economy, accounting for 9% of its GDP, highlighting the country's pivotal role in the outsourcing landscape. Approximately 37% of small businesses outsource at least one business process, demonstrating the accessibility and benefits of outsourcing for organizations of varying sizes. China's services outsourcing industry witnesses a substantial influx of over one million new employees annually, indicating the sector's robust growth and employment opportunities. The global outsourcing industry was valued at USD 620.381 billion in 2020 and is projected to reach USD 904.948 billion by 2027, showcasing its continuous expansion and market potential. India, known as the "Outsourcing Capital of the World," excels in various outsourcing domains, including IT services, software development, customer support, and back-office operations, leveraging its abundant talent pool and technological expertise. Southeast Asian countries like Malaysia, Vietnam, and Thailand specialize in IT outsourcing, business support functions, and digital marketing, offering competitive solutions to global businesses. The US market dominates the global outsourcing business, generating USD 62 billion of the total international income from the industry, underscoring its significance in the global outsourcing landscape. Information technology remains the most outsourced industry, with 37% of IT operations being outsourced, highlighting the sector's reliance on outsourcing for specialized services and expertise. The outsourcing industry is anticipated to witness a compound annual growth rate of 4% between 2021 and 2025, indicating steady expansion and opportunities for market players. Since the pandemic, 45% of businesses have expressed intentions to increase outsourcing, emphasizing the growing importance of outsourcing in business strategies, particularly in accessing specialized skill sets and enhancing efficiency. Cloud computing has opened up more outsourcing opportunities, with 90% of businesses able to leverage remote professionals, indicating the transformative impact of technology on the outsourcing landscape. You May Also Like To Read Business Intelligence Statistics Networking Statistics Diversity in Tech Statistics Robotics Industry Statistics

This statistic shows the global market size of outsourced services from 2000 to 2019. In 2019, the global outsourcing market amounted to **** billion U.S. dollars. The global outsourcing market - additional information The revenue of the global outsourced services industry has been unsteady over the last few years. In 2016, the industry market size dropped to **** billion U.S. dollars, the lowest figure seen in a decade. The largest share of revenue for this industry came from the Americas, followed by Europe, the Middle East and Africa. A much smaller share of global revenue came from the Asia Pacific region. Outsourcing involves the contracting out of business processes to third parties, usually in order for the business to avoid certain costs, such as taxes. In 2019, business process outsourcing contributed a much smaller proportion of the industry’s global revenue than information technology outsourcing, generating ** billion and **** billion U.S. dollars respectively. Other outsourcing segments within the global industry include business services, energy, healthcare and pharmaceuticals, retail, travel and transport, and telecom and media. In 2016, the leading driver for using outsourcing services, according to business executives, was to cut costs. Other drivers included, enabling focus on core business and solving capacity issues.

The Data Analytics Outsourcing Market Report is Segmented by Analytics Type (Descriptive, Diagnostic, and More), End-User Industry (Retail and E-Commerce, BFSI, and More), Service Model (Offshore, Nearshore, and On-shore/On-site), Organization Size (Large Enterprises and SMEs), Deployment Model (Cloud-Only and Hybrid Cloud), and Geography. The Market Forecasts are Provided in Terms of Value (USD).

Introduction

Business Process Outsourcing Statistics: Business Process Outsourcing (BPO) involves companies delegating specific non-core functions to external service providers, typically third-party firms.

These providers specialize in efficiently managing customer service and finance tasks, allowing organizations to lower operational expenses. Concentrate on their core strengths, gain access to specialized knowledge, and adapt their operations as required.

BPO encompasses back-office functions like finance and human resources and front-office tasks like customer support and sales.

This worldwide industry has substantially impacted economies, with nations like India and the Philippines emerging as important outsourcing centers, underscoring its importance in today's business world.

Introduction

Engineering Services Outsourcing Statistics: Engineering services outsourcing (ESO) involves delegating engineering tasks to external providers. Offering benefits such as cost savings, access to specialized skills, and enhanced flexibility.

ESO encompasses various mechanical and electrical engineering disciplines, with engagement models ranging from project-based to full-service outsourcing.

Companies can use a global delivery model and technological infrastructure to ensure effective communication and collaboration across distributed teams.

Quality assurance measures and risk management strategies are vital to maintain standards and mitigate inherent risks.

Overall, ESO enables companies to focus on core competencies, and accelerate time-to-market. Which expand their global reach through strategic partnerships and efficient resource utilization.

Introduction

Outsourcing Statistics: Outsourcing has become a key strategy for many businesses, helping them save costs and improve efficiency. In 2023, the global outsourcing market was valued at around $92.5 billion, and it’s expected to grow at a rate of 8.7% annually. Most outsourcing focuses on IT services, customer support, and business processes, with countries like India and the Philippines leading the way.

This growing trend shows how companies are increasingly turning to external partners for specialized skills, scalability, and flexibility. Outsourcing is playing a crucial role in helping businesses stay competitive and run smoothly in today’s fast-paced world.

The statistic shows the revenue generated in the outsourcing industry by service type from 2010 to 2019. In 2019, ** billion U.S. dollars was generated through business process outsourcing (BPO). Global outsourcing industry - additional information Outsourcing is the contracting out of processes to external parties. Business process outsourcing (BPO), which generated ** billion U.S. dollars worldwide in 2019, involves transferring business processes to service providers outside of an organization. This process often requires offshoring. In 2019, India was the best country for offshoring when its financial attractiveness, the skills and availability of its people and its business environment are considered together. Information technology outsourcing (ITO) is closely related to business process outsourcing as many business processes are technology based. In 2019, global ITO revenue was **** billion U.S. dollars. The global revenue of business process outsourcing and information technology outsourcing amounted to around **** billion U.S. dollars in 2019, of which more than half was generated in the Americas. Southern Europe was the region with the largest share of businesses practicing, or planning to practice, business process outsourcing. Latin America and South Africa also had high proportions. Business process outsourcing includes delegating back-office or internal functions, like HR and accounting, and front-office or customer-related functions, such as those that would be passed on to call centers. In 2016, most companies used outsourcing services as a cost cutting tool while communication was a main driver of a successful outsourcing experience among mid-market business leaders worldwide.

Number of Businesses statistics on the Business Process Outsourcing industry in Australia

Outsourcing software development is no longer a niche strategy; it fuels $213 billion in U.S. revenue and plays a central role in global tech delivery. In healthcare, startups accelerate mobile app releases by tapping global talent. In financial services, banks reduce platform development costs through offshore teams. Dive into this...

Payroll Outsourcing Services Market is expected to grow at higher CAGR during the forecast period due to increasing need for cutting cost and operational efficiency across the world.

This statistic shows the share of businesses by their plans to outsource finance and accounting department back-office processes worldwide as of February 2015, by region. In Latin America, ** percent of mid-market business outsource finance and accounting department back-office processes.

In 2015, the global outsourcing industry generated **** billion U.S. dollars in revenue.

Survey of innovation and business strategy, business activities outsourced from Canada to another country in the past three years, by North American Industry Classification System (NAICS) and enterprise size for Canada and regions from 2007 to today.

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Business Process Outsourcing Industry - Statistics and Analysis - Forecast Period 2023-2027

The business process outsourcing market has potential to grow at a projected CAGR of 6.5% during the forecast period 2022-2027 by Technavio data and research experts. This market research report also predicts the statistics about the market size growth that will grow by USD 75.89 billion. There are some major factors that directly affect the business process outsourcing market growth such as emphasis on declining costs involved in operations, rising number of BPOs, and the growing adoption rate of BPO by IT and telecom service providers.

The projected growth momentum is considered as incremental thus gives a positive outlook for the market as well as the respective investors. Consequently, such market conditions will further reinforce the position of vendors in the market. Government has taken various initiatives to enhance the services and it will further lead to more effective partnerships between clients and suppliers. It consequently brings better business innovation and more investment options for the market growth during 2023-2027, the forecast period.

Our researchers conclude predictions about some key market drivers via thorough data and information analysis. One such market driver is the growing adoption rate of BPO and it turns into one of the reasons for the business process outsourcing market growth. Although there are other factors such as language differences and the goodwill risk may affect the market growth negatively.

Additionally, there are some key vendors operating in the market, listed below:

Accenture Plc
Infosys Ltd.
Deloitte Touche Tohmatsu Ltd.
Concentrix Corp.
Anderson Business Solutions Pvt. Ltd.
Amdocs Ltd
HCL Technologies Ltd.
Alight Solutions LLC
Automatic Data Processing Inc
Cognizant Technology Solutions Corp.

The precisely illustrated statistical data consists of some key market information and analysis to get a better understanding of specific business requirement. Technavio, also has the subscription platform having an instant lifetime access to the 17,000+ market reports and the world-class market intelligence at customized plans and rates.

The Business Process Outsourcing (BPO) industry provides a variety of back and front office functions to businesses, including call centre operations, IT services, debt collection and recruitment services. Although many companies undertake these tasks in-house, BPO firms can typically perform these processes more efficiently and at a lower cost because of their greater expertise and economies of scale. Outsourcing also allows companies to focus on performing higher value activities. For this reason, downstream businesses have increasingly demanded the industry's services, underpinning industry revenue and profit growth. Overall, Industrywide revenue has been growing over the past five years at an expected annualised 1.2% and is set to total $49.6 billion in 2024-25, when revenue will jump by an anticipated 0.4%. Growth in the number of businesses and mounting cost pressure on downstream businesses have encouraged trends in business process outsourcing over the past few years. Despite revenue growth, offshoring poses a threat to the industry. International BPO companies have gradually encroached on the domestic market as many downstream businesses have offshored processes, bypassing Australia-based BPO providers. Countries like India and the Philippines have benefited from this business process offshoring, with these countries chosen for their increasing technological sophistication in IT services, strong English-language skills and lower labour costs. Despite mounting competition, various ongoing advancements, including technological innovation, increased software investment and the greater prevalence of mobile platforms and cloud computing, have fuelled industry performance. Moving forwards, BPO providers are likely to continue increasingly incorporating new technology to streamline operations and provide a wider range of integrated services to customers for a lower cost, encouraging demand. Rapidly advancing technology will require many firms to outsource complex IT services. Companies' growing desire for high-quality, tailored IT services will buttress industry revenue growth. Even so, intense competition from offshoring and in-house operations is set to hamper revenue growth as price competition mounts. Nonetheless, industry revenue is forecast to grow at an annualised 3.2% through the end of 2029-30, to $57.9 billion.

Outsourcing of tasks, projects or short contracts to freelancers or gig workers by the business or organization in the last 12 months, by North American Industry Classification System (NAICS), business employment size, type of business, business activity and majority ownership, third quarter of 2021.

The Knowledge Process Outsourcing (KPO) market has emerged as a critical segment within the broader outsourcing landscape, characterized by the handling of complex and knowledge-intensive tasks that require specialized expertise. Unlike traditional Business Process Outsourcing (BPO), KPO focuses on high-level tasks

The Game Art Outsourcing Service market has emerged as a pivotal segment within the global gaming industry, catering to the growing demand for high-quality visual content in video games. With the rapid advancements in gaming technology and the increasing complexity of game development, studios are turning to outsour

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The it outsourcing market is expected to grow at a CAGR of 5% during the forecast period. Need to optimize business processes, drivers.2, and drivers.3 are some of the significant factors fueling it outsourcing market growth.

Need to optimize business processes

The global service desk outsourcing market size is predicted to grow from USD 92.97 billion in 2024 to USD 151.44 billion by 2034, reflecting a CAGR of over 5% from 2025 through 2034. Prominent industry players include Accenture, HCL Technologies, DXC Technology Company, Hewlett Packard Enterprise Development LP, Infosys Limited, IBM, Wipro, Fujitsu, NTT Communications..

The Payroll Outsourcing market is rapidly evolving, driven by the growing need for organizations to streamline their operational efficiency and enhance financial accuracy. Outsourcing payroll functions allows companies to allocate their valuable time and resources to core business activities while ensuring complianc