Outsourcing Statistics

Outsourcing Statistics 2024 (US & World)

Published on: February 17, 2023
Last Updated: February 17, 2023

Outsourcing Statistics 2024 (US & World)

Published on: February 17, 2023
Last Updated: February 17, 2023

Many businesses and companies from different parts of the world decided to have a third party or external party to reduce costs, free up internal resources, and grow.

They hire a workforce to outsource their job functions and services.

According to Deloitte’s survey, 65% of companies and businesses said that outsourcing services enable them to focus on their core functions, while 63% reduced their expenses.

Do you want to know more about outsourcing statistics (US & World)? Here we go.

Key Outsourcing Statistics

  • IT services are the most common outsourced services in 2021, accounting for 54%.
  • The outsourcing market worldwide is valued at approximately $92.5 billion. The US market brings $62 billion of the total revenue.
  • North and South America are the major outsourcing buyer regions, accounting for 42%.
  • Based on the Global Services Location Index, the Philippines is one of the leading countries in outsourcing, and India is the most attractive for outsourcing business services.
  • The BPO market value is forecasted to grow by the end of 2032 to $620 billion.
  • The tech outsourcing market is projected to hit $98 billion in 2024.
  • Spending on outsourcing worldwide is expected to reach $731 billion in 2023.
  • In 2019, Accounting and IT services were the most outsourced business processes. They both claim 37%.

Detailed Outsourcing Statistics (US & World) in 2024

Outsourcing service providers continue to improve and provide high-impact business outcomes, efficiency, value-added services, and growth for their clients.

According to Deloitte, 88% of businesses and companies worldwide achieved their objective of reducing cost after they invest in outsourcing services, while 78% achieved standardization and efficiency of processes.

Zippia’s report shows that 68% of big companies in the US use outsourcing.

A US survey discovered reasons why organizations outsource – they want efficiency, business growth, acquire flexible resources, and work with experts.

27% outsource to become efficient and to save time, 19% want business growth, 33% want flexible resources, and 26% want to work with experts.

The outsourcing service market worldwide was valued at $92.5 billion in 2019. The US market brings $62 billion of the total outsourcing revenue worldwide.

A significant global outsourcing revenue was generated by the information technology (IT) sector, accounting for $66.5 billion, while the business process outsourcing (BPO) sector generated $26 billion in 2019.

The tech outsourcing market is projected to hit $98 billion in 2024, while the BPO market value is forecasted to reach $620 billion by the end of 2032.

According to KPMG Analysis, North America and South America (AMERICAS) are the major outsourcing buyer regions, accounting for 42%.

Europe, the Middle East, and Africa (EMEA) come next with 35%, and Asia and Oceania (ASPAC) with 23%.

In 2021, seven out of ten leading countries for outsourcing were in the Asia-Pacific region, namely, India, Philippines, China, Vietnam, Malaysia, Indonesia, and Thailand.

India was the most attractive for outsourcing business services, based on the Global Services Location Index, a tool for measuring the attractiveness of countries for outsourcing.

While the Philippines was one of the leaders in outsourcing since most Filipinos are great English speakers with a 97.5% literacy rate.

The Philippines was also one of Asia’s fastest-growing economies. Organizations that outsource to the country can cut 70% of labor costs.

Meanwhile, China’s outsourcing service industry was worth $175.35 billion in 2020, up from $106.46 billion in 2016.

More than a million employees have added to the outsourcing industry in the country per year aside from the 5,000 newly formed outsourcing companies per year.

Global Spending on Outsourcing

According to Deloitte’s report, global spending on outsourcing is expected to reach $731 billion by the end of 2023, up from over $700 billion in the previous year.

The information technology outsourcing (ITO) spending can hit $519 billion in 2023, showing an increase of 22% from 2019.

While business process outsourcing (BPO) spending can hit $212 billion in 2023, representing a 19% growth from 2019.

The BPO market is projected to surpass $525 billion by the end of 2030.

Top 4 Implemented Services by Outsourcing Providers

Outsourcing

Information Technology (IT) services are the most implemented services by outsourcing providers worldwide.

It accounts for 54% of the total outsourced services worldwide in 2021.

Here are the top 4 most commonly implemented services by outsourcing providers worldwide in 2021:

  • IT services are the most commonly implemented services by outsourcing providers worldwide in 2021, accounting for 54%.
  • Finance services are one of the most commonly implemented services by outsourcing providers worldwide in 2021, accounting for 44%.
  • Payroll services are one of the most commonly implemented services by outsourcing providers worldwide in 2021, accounting for 32%.
  • Customer services are one of the most commonly implemented services by outsourcing providers worldwide in 2021, accounting for 22%

Common Outsourced Business Processes

According to the Clutch Small Business BPO survey, Accounting and IT services are the most outsourced business processes in 2019, accounting for 37%.

Digital marketing follows, with 34%.

Below were the most outsourced business processes in 2019:

  • Accounting services claim 37% of the most outsourced business processes in 2019.
  • IT services claim 37% of the most outsourced business processes in 2019.
  • Digital marketing services claim 34% of the most outsourced business processes in 2019.
  • Development services claim 28% of the most outsourced business processes in 2019.
  • Human Resource services claim 24% of the most outsourced business processes in 2019.
  • Customer Support services claim 24% of the most outsourced business processes in 2019.

Top 10 Countries for Outsourcing

Based on the Global Services Location Index (GSLI) assessment, 70% of the leading outsourcing countries in 2021 were in the Asia-Pacific region.

GSLI tracks four major categories: financial attractiveness, digital resonance, business environment, and people skills and availability.

India was the most attractive for outsourcing business services in 2021. 

Here are the top 10 countries for outsourcing based on the GSLI assessment:

  • India
  • China
  • Malaysia
  • Indonesia
  • Brazil
  • Vietnam
  • United States
  • United Kingdom
  • Philippines
  • Thailand

Market Size of Outsourced Services Worldwide

Outsourcing

The outsourcing service market worldwide was worth $92.5 billion in 2019, representing a $6.9 billion increase from the previous year.

A significant share came from the Americas, with $62 billion. It is followed by Europe, the Middle East, and Africa (EMEA).

Let’s take a look at the market size of outsourced services worldwide from 2014 to 2019:

  • In 2014, the outsourcing service market worldwide was worth $104.6 billion.
  • In 2015, the outsourcing service market worldwide was worth $88.9 billion.
  • In 2016, the outsourcing service market worldwide was worth $76.9 billion.
  • In 2017, the outsourcing service market worldwide was worth $88.9 billion.
  • In 2018, the outsourcing service market worldwide was worth $85.6 billion.
  • In 2019, the outsourcing service market worldwide was worth $92.5 billion.

Conclusion

Running a business usually needs expertise and a budget to perform well.

Many businesses hire trusted outsourcing companies to focus on the job functions they can’t handle since they need to focus on their core functions.

59% outsource to reduce costs, 57% enable focus on core business functions, 47% solve capacity issues, 31% improve service quality, and 28% meet business needs.

About 68% of big companies in the US use outsourcing services.

Based on the 2019 report, the value of outsourcing services worldwide was $92.5 billion.

Now you know the outsourcing statistics (US & World).

Sources

MicroSourcingZippiaExploding Topics
StatistaTeam StageKearney
Statista

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Written by Jason Wise

Hello! I’m the editor at EarthWeb, with a particular interest in business and technology topics, including social media, privacy, and cryptocurrency. As an experienced editor and researcher, I have a passion for exploring the latest trends and innovations in these fields and sharing my insights with our readers. I also enjoy testing and reviewing products, and you’ll often find my reviews and recommendations on EarthWeb. With a focus on providing informative and engaging content, I am committed to ensuring that EarthWeb remains a leading source of news and analysis in the tech industry.