The outsourcing statistics we’ve gathered also show an obvious split between small businesses and large corporations as emerging technologies like the cloud and robotic automation change the market even further. Smaller businesses are less inclined to spend money on outsourcing when compared to global outsourcing companies, as they usually feel like it is better to keep the money inside their firm and do things themselves. When they do outsource, smaller companies tend to turn to freelance workers. United States outsourcing statistics show that another common reason (18%) that a small business turns to outsourcing is to increase available expertise and seek expert assistance. The latest research has also shown that 52% of small businesses will continue to outsource especially non-core functions even in the post COVID-19 economy. Small businesses usually turn to outsourcing when it comes to accounting and IT because those tasks require proficiency and skills that they might not possess internally.

• This could be something as simple as data entry, or as complex as handling the whole business payroll.
• The buyer sets up goals with all the risks, changes, and requirements in mind, then builds and chooses the right outsourcing strategy based on that.
• It encompasses economic indicators, the adverse effects of COVID-19, survival strategies, market participation, growth metrics, and more.
• (See Exhibit 3.) The areas for future discussion will likely be changes in the contractual terms and conditions, pricing structure, delivery model, and scope of providers’ services.
• By now, numerous research studies have been published, and they yield some pretty fantastic outsourcing statistics.

While most companies can perform a simple reverse email search to check the legitimacy of an email, plenty still get caught out by phishing scams, for example. There are many other examples, as people look to “BPO” or “Business Process Outsourcing” and employ other companies to do tasks that would otherwise be done by your team. This could be something as simple as data entry, or as complex as handling the whole business payroll. A company may have started producing clothing, and built a brand that is profitable with employees of their own. This company could then outsource production, or large parts of their production, to other companies around the world. These top outsourcing trends in 2021 hint of, hopefully, a continuous positive uptrend for the rest of the year, carrying on from an equally optimistic market outlook from 2020.

Postpandemic Outsourcing Trends for CEOs

The report focuses on the Media and Entertainment Outsourcing market size, segment size (mainly covering product type, application, and geography), competitor landscape, recent status, and development trends. As businesses move more and more of their operations to the cloud, the need for cybersecurity specialists will continue to grow. Outsourcing providers that can offer cybersecurity services will be in high demand. U.S. outsourcing statistics suggest that outsourcing in the financial services market will continue to rise by almost 7.5% annually.

With several countries are likely to witness a change in their political leadership, outsourcing seems to be an apt way to stay safe from the pendulum of political whims and fancies. Increase in corporate taxation, https://www.globalcloudteam.com/ more funds towards employee welfare and high salaries adversely affect a company. The automation process ensures enhanced productivity and efficiency at lower cost while retaining maximum quality in the process.

Trends In Outsourcing To Follow In 2023

For example, a design company offering graphics may wish to start to offer web design services, but they don’t necessarily have to take on employees or structure their business in a way that adds a web design department. For example, it can allow you to avoid having to take a huge plunge on starting a new department, as you can start to offer a product or service without having to employ people to work on it. This means that things are also likely to be more easy to scale as your business grows.

Since companies need 24/7 monitoring, the most important outsourcing service is having a security team that will protect all the important data (website, communication channels, database). Equally important is creating the security strategy and security architecture. As the US outsourcing statistics from 2019 report, its outsourcing market was worth $62 billion. Europe, the Middle East, and Africa were close behind, while the Asian Pacific region had the smallest global revenue share. The COVID-19 pandemic ushered in a digital revolution with a majority of the businesses undertaking five years’ worth of digital transformation within a few months. However, with the increased shift to digital, exposure to cyber-attacks also increased.

To mitigate the risk of a transformation failing, many companies appear keen to build capabilities in-house.

The outsourcing trends in 2022 reflect the changes the pandemic brought to the outsourcing market in the last couple of years. It suggests that businesses must look for providers with high-quality services, aim for high flexibility, and leverage updated technology while outsourcing in 2023. Companies may think long and deeply about their relationships with service providers. But, contrary to popular perception, it’s unlikely that they will shift from their current dependence on service providers.

They had the money to set up big contracts and commit to working with others for long-term contracts. Knowledge Process Outsourcing (KPO) is when you outsource activities such as using data to give insights into your business, and it has been shown to be very effective in recent years. With the acceptance that remote work is here to stay and that there will continue to be a huge role for working outside of a traditional environment, it is inevitable that companies continue to shift to this way of working. A lot of people assume that the only reason people outsource is to save money, but there are other reasons. If you are employing people in the local area you may be very limited in terms of job candidates. If you’re opening up your search to companies or freelancers all over the world, you can cherry-pick the very best talent.

List of Leading Competitors in the Media and Entertainment Outsourcing Market Report:

Of course, this increased adoption will have compliance and technology implications that will impact SLAs. As outsourcers react to the labor market’s demands for more remote work options, clients will have to as well. Where 2020 brought hesitancy (and even refusal) by clients to accept remote outsourcing operations, there was a subtle shift in 2021. In 2022, outsourcing clients will adapt and embrace the new, more refined remote workforces that have evolved since the pandemic.

When it comes to market shares, India will be one of the leading countries. For example, India has no communication barriers since it’s one of the largest English-speaking countries. Furthermore, outsourcing is far cheaper compared to other developed countries. Find out how your business can deliver an exceptional 24/7 customer experience, improve conversion rates and convert website traffic into customers. Running a contracting business is undoubtedly rewarding, but it also comes with its fair share of challenges. Try it for free to see how this growing outsourcing trend can fit into your business model.

Build for the Future

The worldwide hospital outsourcing market size was $267.81 billion in 2019. Thanks to technological advancement and AI, hospital outsourcing is becoming more reliable. By 2026, outsourcing in this industry is supposed to reach $661.68 million. While we can’t predict the future, one of the main IT outsourcing trends is related to cloud solutions. Many companies already use a multi-cloud strategy, and it has already become a must for almost every new company. Research shows that the legal process outsourcing market size will rise with a CAGR of over 40% by 2024.

To help our clients succeed, we build new solutions that get the job done quicker, at lower cost, and with higher quality. We understand our client’s goals and the challenges they face to accomplish their business objectives. In terms of the top countries where work is being outsourced, we have India with its IT specialists. In fact, many companies (small and big) use outsourcing to reduce their costs and have more flexibility. India is the leading country globally when it comes to IT outsourcing, followed by the Philippines and the US. Over one-third of small businesses use outsourcing to help them become more efficient, increase their skill, and give their employees more free time.

Must-Know Outsourcing Statistics for 2023

Moreover, remote work has been one of the fast-evolving business process it outsourcing trends since COVID-19 and will continue to grow in the coming years. Data analytics outsourcing means that companies receive data reports from a provider. By 2028, the global data analytics outsourcing market will grow at a 34% rate and be worth $60.3 million. Business process outsourcing is closely related to information technology outsourcing because many business processes are technology-based. Additionally, Southern Europe has the largest share of business process outsourcing.