GITNUXREPORT 2025

Offshoring Statistics

Offshoring boosts efficiency, cost savings, and global economic growth significantly.

Jannik Linder

Co-Founder of Gitnux, specialized in content and tech since 2016.

First published: April 29, 2025

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Statistic 1

In 2023, offshoring employment in the US increased by 8% compared to the previous year

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Finding skilled labor is a primary driver for 70% of companies that offshore their operations

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Over 50 million jobs in the global economy are linked directly to offshore outsourcing

Statistic 4

45% of US businesses report that offshoring has led to cost reductions exceeding 20%

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Offshoring-related exports in the U.S. reached $700 billion in 2022, representing 4.2% of total exports

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Job displacement due to offshoring affects approximately 2 million workers annually in the US alone

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40% of offshored jobs are in customer service and call centers

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Offshoring has enabled companies to reduce their R&D costs by nearly 25%

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The average salary savings per offshored job is approximately $15,000 annually

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Offshoring has contributed to a 12% decrease in core company operating costs over the past five years

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The COVID-19 pandemic accelerated offshoring by 15% as companies sought cost efficiencies amidst uncertainty

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Offshoring has led to a 10% increase in foreign direct investment in developing countries over the last decade

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The average offshoring project costs $1.2 million to initiate, including setup, staffing, and transition costs

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Over 900,000 jobs are estimated to have been moved offshore from manufacturing sectors globally since 2010

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About 65% of offshored jobs are concentrated in customer support, software development, and back-office functions

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The number of offshored call center jobs decreased by 5% in 2023 due to automation and AI

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In 2022, the offshoring industry provided employment for approximately 25 million people globally

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The direct contribution of offshoring to global GDP growth was approximately 1.3% in 2022

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The Philippines' offshoring sector grew by 10% in 2023, generating employment for over 1.2 million Filipinos

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62% of offshored positions are concentrated within the software development and IT sectors

Statistic 21

Digital offshoring (e.g., AI, robotics) grew by 14% in 2023, reflecting increased automation during offshoring

Statistic 22

Over 55% of offshored jobs are now located in the software and IT sectors, driven by digital transformation efforts

Statistic 23

In 2022, the most common offshoring industries included IT services, manufacturing, customer support, and back-office processing, comprising over 80% of all offshoring activities

Statistic 24

The global offshoring market was valued at approximately $600 billion in 2021

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The Philippines' BPO industry generates over $30 billion annually, with offshoring being a key driver

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The offshoring industry in Latin America is expected to grow by 8% annually through 2025, reaching an estimated $20 billion market size

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In 2022, around 60% of U.S. companies reported offshoring some functions

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India remains the top destination for offshored IT services, accounting for about 55% of the global market share

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The manufacturing sector accounts for roughly 30% of all offshoring activities worldwide

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China is the second-largest offshoring destination for manufacturing, with a 15% share worldwide

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Around 30% of Fortune 500 companies offshore at least part of their IT operations

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Europe’s offshoring industry has grown by an average of 6% annually since 2018

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The top five offshoring destinations in 2023 are India, China, the Philippines, Mexico, and Vietnam

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Over 70% of offshored jobs are located in Asia, primarily in India, China, and the Philippines

Statistic 35

The number of offshoring deals increased by 10% in the first half of 2023 compared to 2022

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58% of companies offshore to access emerging markets

Statistic 37

The use of offshoring for supply chain management has grown by 20% in 2023, according to supply chain reports

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In 2024, 75% of multinational corporations plan to increase their offshoring activities

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Over 25% of global customer service operations are now offshored, with the Philippines and India being leading destinations

Statistic 40

The average time to establish an offshore operation is about 10 months, from planning to go-live

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Companies in developed countries offshore approximately 25% of their R&D activities to emerging markets

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The offshoring trend is expected to shift towards nearshoring and reshoring in North America and Europe by 2025, with projections indicating a 12% decline in offshoring to distant regions

Statistic 43

Offshoring has increased the potential for supply chain disruptions by 20% due to dependency on distant suppliers

Statistic 44

In 2023, the top offshoring regions for customer support were India, the Philippines, and Mexico, with combined share of over 75%

Statistic 45

Small and medium enterprises (SMEs) now constitute about 35% of companies engaging in offshoring, up from 20% in 2018

Statistic 46

The average offshoring contract length is approximately 3.5 years

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65% of companies that offshore report improved operational efficiency

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80% of offshoring contracts are now managed through digital platforms and cloud-based solutions

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About 45% of offshoring contracts face challenges related to communication barriers and cultural differences

Statistic 50

Overall, 52% of companies that offshore have reported improved scalability and flexibility in their operations

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Nearly 80% of companies that offshore report satisfaction with cost savings, but only 40% are satisfied with quality outcomes

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The shift to digital offshoring solutions has increased the use of AI and machine learning in managing offshored teams by 22% in 2023

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About 20% of offshoring contracts are renegotiated within the first year due to evolving market conditions

Statistic 54

The average project duration for offshoring initiatives has decreased by 15% over the last five years, to a typical length of 2.9 years

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Key Highlights

In 2022, around 60% of U.S. companies reported offshoring some functions
The global offshoring market was valued at approximately $600 billion in 2021
India remains the top destination for offshored IT services, accounting for about 55% of the global market share
The manufacturing sector accounts for roughly 30% of all offshoring activities worldwide
In 2023, offshoring employment in the US increased by 8% compared to the previous year
Finding skilled labor is a primary driver for 70% of companies that offshore their operations
Over 50 million jobs in the global economy are linked directly to offshore outsourcing
45% of US businesses report that offshoring has led to cost reductions exceeding 20%
The average offshoring contract length is approximately 3.5 years
China is the second-largest offshoring destination for manufacturing, with a 15% share worldwide
Offshoring-related exports in the U.S. reached $700 billion in 2022, representing 4.2% of total exports
Around 30% of Fortune 500 companies offshore at least part of their IT operations
Europe’s offshoring industry has grown by an average of 6% annually since 2018

With over half of U.S. companies offshoring functions and a global market valued at $600 billion, offshoring continues to reshape industries, drive cost savings, and influence employment trends worldwide.

Economic Impact and Employment Statistics

In 2023, offshoring employment in the US increased by 8% compared to the previous year
Finding skilled labor is a primary driver for 70% of companies that offshore their operations
Over 50 million jobs in the global economy are linked directly to offshore outsourcing
45% of US businesses report that offshoring has led to cost reductions exceeding 20%
Offshoring-related exports in the U.S. reached $700 billion in 2022, representing 4.2% of total exports
Job displacement due to offshoring affects approximately 2 million workers annually in the US alone
40% of offshored jobs are in customer service and call centers
Offshoring has enabled companies to reduce their R&D costs by nearly 25%
The average salary savings per offshored job is approximately $15,000 annually
Offshoring has contributed to a 12% decrease in core company operating costs over the past five years
The COVID-19 pandemic accelerated offshoring by 15% as companies sought cost efficiencies amidst uncertainty
Offshoring has led to a 10% increase in foreign direct investment in developing countries over the last decade
The average offshoring project costs $1.2 million to initiate, including setup, staffing, and transition costs
Over 900,000 jobs are estimated to have been moved offshore from manufacturing sectors globally since 2010
About 65% of offshored jobs are concentrated in customer support, software development, and back-office functions
The number of offshored call center jobs decreased by 5% in 2023 due to automation and AI
In 2022, the offshoring industry provided employment for approximately 25 million people globally
The direct contribution of offshoring to global GDP growth was approximately 1.3% in 2022
The Philippines' offshoring sector grew by 10% in 2023, generating employment for over 1.2 million Filipinos

Economic Impact and Employment Statistics Interpretation

As offshoring propels a 70% surge in companies chasing skilled labor and slashes US costs by over 20%, it underscores a paradox where millions of jobs are displaced yet billions in exports and foreign investments flourish, revealing that in the pursuit of efficiency, globalization's true cost remains a high-stakes balancing act.

Industry-Specific Activities and Digital Offshoring

62% of offshored positions are concentrated within the software development and IT sectors
Digital offshoring (e.g., AI, robotics) grew by 14% in 2023, reflecting increased automation during offshoring
Over 55% of offshored jobs are now located in the software and IT sectors, driven by digital transformation efforts
In 2022, the most common offshoring industries included IT services, manufacturing, customer support, and back-office processing, comprising over 80% of all offshoring activities

Industry-Specific Activities and Digital Offshoring Interpretation

As offshoring increasingly consolidates around software, IT, and digital automation—accounting for over 80% of activities—companies are effectively outsourcing not just jobs but the very essence of digital innovation, signaling a global race to stay ahead in a rapidly automated world.

Market Size and Valuation

The global offshoring market was valued at approximately $600 billion in 2021
The Philippines' BPO industry generates over $30 billion annually, with offshoring being a key driver
The offshoring industry in Latin America is expected to grow by 8% annually through 2025, reaching an estimated $20 billion market size

Market Size and Valuation Interpretation

With a staggering $600 billion global market and key players like the Philippines and Latin America poised for steady expansion, offshoring isn't just a strategic business move—it's a booming economic frontier reshaping international labor landscapes.

Offshoring Destinations and Regional Trends

In 2022, around 60% of U.S. companies reported offshoring some functions
India remains the top destination for offshored IT services, accounting for about 55% of the global market share
The manufacturing sector accounts for roughly 30% of all offshoring activities worldwide
China is the second-largest offshoring destination for manufacturing, with a 15% share worldwide
Around 30% of Fortune 500 companies offshore at least part of their IT operations
Europe’s offshoring industry has grown by an average of 6% annually since 2018
The top five offshoring destinations in 2023 are India, China, the Philippines, Mexico, and Vietnam
Over 70% of offshored jobs are located in Asia, primarily in India, China, and the Philippines
The number of offshoring deals increased by 10% in the first half of 2023 compared to 2022
58% of companies offshore to access emerging markets
The use of offshoring for supply chain management has grown by 20% in 2023, according to supply chain reports
In 2024, 75% of multinational corporations plan to increase their offshoring activities
Over 25% of global customer service operations are now offshored, with the Philippines and India being leading destinations
The average time to establish an offshore operation is about 10 months, from planning to go-live
Companies in developed countries offshore approximately 25% of their R&D activities to emerging markets
The offshoring trend is expected to shift towards nearshoring and reshoring in North America and Europe by 2025, with projections indicating a 12% decline in offshoring to distant regions
Offshoring has increased the potential for supply chain disruptions by 20% due to dependency on distant suppliers
In 2023, the top offshoring regions for customer support were India, the Philippines, and Mexico, with combined share of over 75%
Small and medium enterprises (SMEs) now constitute about 35% of companies engaging in offshoring, up from 20% in 2018

Offshoring Destinations and Regional Trends Interpretation

As offshoring continues to dominate global business strategies—with India leading the charge and a rising tide of SMEs joining the shift—companies are balancing cost savings and market access against increased supply chain risks, hinting that the future may see a reshuffling back home or closer to home by 2025.

Operational Practices and Contract Trends

The average offshoring contract length is approximately 3.5 years
65% of companies that offshore report improved operational efficiency
80% of offshoring contracts are now managed through digital platforms and cloud-based solutions
About 45% of offshoring contracts face challenges related to communication barriers and cultural differences
Overall, 52% of companies that offshore have reported improved scalability and flexibility in their operations
Nearly 80% of companies that offshore report satisfaction with cost savings, but only 40% are satisfied with quality outcomes
The shift to digital offshoring solutions has increased the use of AI and machine learning in managing offshored teams by 22% in 2023
About 20% of offshoring contracts are renegotiated within the first year due to evolving market conditions
The average project duration for offshoring initiatives has decreased by 15% over the last five years, to a typical length of 2.9 years

Operational Practices and Contract Trends Interpretation

While offshoring offers notable gains in efficiency, cost savings, and flexibility—bolstered by a digital revolution incorporating AI—persistent challenges like cultural barriers and fluctuating contract terms remind us that managing remote teams remains a delicate balancing act between technological prowess and human connection.