GITNUX REPORT 2024

Global Outsourcing Industry: Key Statistics and Growth Projections Revealed

Unveiling the Dynamics of the $92.5 Billion Global Outsourcing Industry: Trends, Statistics, and Projections.

Author: Jannik Lindner

First published: 7/17/2024

Statistic 1

The Philippines' BPO industry employs over 1.3 million people

Statistic 2

The healthcare BPO market is projected to grow at a CAGR of 9.6% from 2021 to 2028

Statistic 3

The customer service outsourcing market is expected to reach $110 billion by 2024

Statistic 4

The Philippines' BPO industry contributes about 11% to the country's GDP

Statistic 5

The global contact center outsourcing market is projected to reach $120.7 billion by 2027

Statistic 6

71% of financial services companies outsource or offshore some of their services

Statistic 7

The global data entry outsourcing services market is expected to reach $351.6 million by 2023

Statistic 8

The global medical billing outsourcing market is expected to reach $19.7 billion by 2026

Statistic 9

47% of companies plan to increase their use of outsourcing in the finance function

Statistic 10

The global telecom BPO market is expected to reach $26.3 billion by 2025

Statistic 11

The global animation outsourcing market is expected to reach $26.8 billion by 2025

Statistic 12

78% of businesses feel positive about their outsourcing partners

Statistic 13

87% of outsourcing clients are satisfied with their IT service provider

Statistic 14

78% of businesses worldwide feel positive about their relationship with their IT outsourcing provider

Statistic 15

65% of companies that outsource application hosting are satisfied with their provider

Statistic 16

78% of businesses are satisfied with their outsourcing relationship

Statistic 17

IT outsourcing accounts for 62% of the total outsourcing market

Statistic 18

46% of companies outsource IT functions to reduce costs

Statistic 19

The global cloud computing market size is expected to grow to $832.1 billion by 2025

Statistic 20

31% of IT services are expected to be outsourced by 2025

Statistic 21

72% of companies outsource IT to gain access to new technologies

Statistic 22

40% of companies plan to increase their IT outsourcing spending

Statistic 23

64% of companies outsource software application development

Statistic 24

The global IT staff augmentation market is projected to reach $132.9 billion by 2027

Statistic 25

The global IT infrastructure outsourcing market is expected to reach $98.8 billion by 2024

Statistic 26

74% of companies plan to outsource IT security

Statistic 27

73% of organizations say cloud migration is their top digital priority

Statistic 28

The global software outsourcing market is projected to reach $108.7 billion by 2025

Statistic 29

The global cybersecurity outsourcing market is projected to reach $64.5 billion by 2026

Statistic 30

The global BPO market is expected to reach $405.6 billion by 2027

Statistic 31

The global HR outsourcing market is projected to reach $45.8 billion by 2027

Statistic 32

The global finance and accounting outsourcing market is expected to reach $53.4 billion by 2026

Statistic 33

The global legal process outsourcing market is expected to reach $35.9 billion by 2025

Statistic 34

The global knowledge process outsourcing market is projected to reach $124.29 billion by 2025

Statistic 35

The global recruitment process outsourcing market is expected to reach $20.8 billion by 2027

Statistic 36

The global IT outsourcing market is expected to reach $397.6 billion by 2025

Statistic 37

The global engineering services outsourcing market is projected to reach $1.5 trillion by 2025

Statistic 38

The global research and development outsourcing market is expected to reach $548.4 billion by 2025

Statistic 39

The global payroll outsourcing market is projected to reach $10.5 billion by 2027

Statistic 40

The global procurement outsourcing market is projected to reach $7.3 billion by 2027

Statistic 41

The global market research outsourcing market is projected to reach $10.5 billion by 2027

Statistic 42

The global outsourcing market reached $92.5 billion in 2019

Statistic 43

68% of US companies outsource some part of their workforce

Statistic 44

85% of small businesses plan to increase their use of freelancers

Statistic 45

66% of companies with over 50 employees use outsourcing

Statistic 46

37% of small businesses outsource at least one business process

Statistic 47

India holds a 55% share of the global outsourcing market

Statistic 48

Eastern Europe's IT outsourcing market is growing at a rate of 20-25% annually

Statistic 49

India's IT exports are expected to reach $350 billion by 2025

Statistic 50

Poland's IT outsourcing market is growing at a rate of 5-10% annually

Statistic 51

Ukraine's IT outsourcing market is growing at a rate of 20-25% annually

Statistic 52

Romania's IT outsourcing market is growing at a rate of 15-20% annually

Statistic 53

Bulgaria's IT outsourcing market is growing at a rate of 15-20% annually

Statistic 54

Vietnam's IT outsourcing market is growing at a rate of 20-25% annually

Statistic 55

Mexico's IT outsourcing market is growing at a rate of 10-15% annually

Statistic 56

Cost reduction is the primary reason for outsourcing for 59% of companies

Statistic 57

70% of companies cite access to expert talent as a key reason for outsourcing

Statistic 58

58% of businesses outsource to focus on their core business functions

Statistic 59

54% of companies use outsourcing to improve business processes

Statistic 60

57% of businesses use outsourcing to enable business transformation

Statistic 61

35% of companies outsource to improve their company's focus

Statistic 62

80% of logistics leaders plan to increase their outsourcing budget in the coming years

Statistic 63

59% of businesses use outsourcing to reduce costs

Statistic 64

51% of companies outsource manufacturing processes

Statistic 65

44% of companies outsource to gain access to resources not available internally

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Summary

  • The global outsourcing market reached $92.5 billion in 2019
  • IT outsourcing accounts for 62% of the total outsourcing market
  • 78% of businesses feel positive about their outsourcing partners
  • The Philippines' BPO industry employs over 1.3 million people
  • Cost reduction is the primary reason for outsourcing for 59% of companies
  • The global BPO market is expected to reach $405.6 billion by 2027
  • India holds a 55% share of the global outsourcing market
  • 70% of companies cite access to expert talent as a key reason for outsourcing
  • The healthcare BPO market is projected to grow at a CAGR of 9.6% from 2021 to 2028
  • 46% of companies outsource IT functions to reduce costs
  • The global cloud computing market size is expected to grow to $832.1 billion by 2025
  • 87% of outsourcing clients are satisfied with their IT service provider
  • The customer service outsourcing market is expected to reach $110 billion by 2024
  • 58% of businesses outsource to focus on their core business functions
  • The global HR outsourcing market is projected to reach $45.8 billion by 2027

Step right up, ladies and gentlemen, to witness the marvels of the outsourcing industry - where $92.5 billion in 2019 is just the tip of the iceberg! From IT outsourcing reigning supreme at 62% of the market to the Philippines army of 1.3 million BPO soldiers, cost-cutting crusaders make up 59% of the outsourcing army. With India leading the charge at 55% and 70% seeking expert talent, its clear that outsourcing isnt just a trend, its a powerhouse in the making. So, buckle up and prepare to be dazzled as we dive deep into an industry destined to reach $405.6 billion by 2027 - because in the outsourcing arena, the only way is up!

BPO Industry

  • The Philippines' BPO industry employs over 1.3 million people
  • The healthcare BPO market is projected to grow at a CAGR of 9.6% from 2021 to 2028
  • The customer service outsourcing market is expected to reach $110 billion by 2024
  • The Philippines' BPO industry contributes about 11% to the country's GDP
  • The global contact center outsourcing market is projected to reach $120.7 billion by 2027
  • 71% of financial services companies outsource or offshore some of their services
  • The global data entry outsourcing services market is expected to reach $351.6 million by 2023
  • The global medical billing outsourcing market is expected to reach $19.7 billion by 2026
  • 47% of companies plan to increase their use of outsourcing in the finance function
  • The global telecom BPO market is expected to reach $26.3 billion by 2025
  • The global animation outsourcing market is expected to reach $26.8 billion by 2025

Interpretation

In a world where outsourcing has become a cornerstone of business operations, the statistics speak volumes about the undeniable impact and potential of this industry. With the Philippines' BPO industry leading the charge with over 1.3 million employees and 11% contribution to the country's GDP, it's clear that outsourcing is not just a trend, but a strategic business decision. As the healthcare BPO market booms and customer service outsourcing market skyrockets, companies are recognizing the value of leveraging external expertise. With financial services, data entry, medical billing, telecom, and even animation sectors all jumping on the outsourcing bandwagon, it's safe to say that the future of business lies in the hands of those who know how to delegate wisely and harness the power of global talent.

Client Satisfaction

  • 78% of businesses feel positive about their outsourcing partners
  • 87% of outsourcing clients are satisfied with their IT service provider
  • 78% of businesses worldwide feel positive about their relationship with their IT outsourcing provider
  • 65% of companies that outsource application hosting are satisfied with their provider
  • 78% of businesses are satisfied with their outsourcing relationship

Interpretation

In a world where relationships can be as fragile as a dropped smartphone screen, these statistics on outsourcing partnerships are like finding a loyal companion in a sea of uncertain options. With such high levels of satisfaction, it seems that businesses have discovered the key to a successful outsourcing relationship: mutual trust and understanding. Perhaps in the outsourcing world, there's no need for swiping left or right – just a reliable partner who can handle the IT heavy lifting while businesses focus on their core strengths. After all, who needs a complicated relationship status when you can simply outsource the complications?

IT Outsourcing

  • IT outsourcing accounts for 62% of the total outsourcing market
  • 46% of companies outsource IT functions to reduce costs
  • The global cloud computing market size is expected to grow to $832.1 billion by 2025
  • 31% of IT services are expected to be outsourced by 2025
  • 72% of companies outsource IT to gain access to new technologies
  • 40% of companies plan to increase their IT outsourcing spending
  • 64% of companies outsource software application development
  • The global IT staff augmentation market is projected to reach $132.9 billion by 2027
  • The global IT infrastructure outsourcing market is expected to reach $98.8 billion by 2024
  • 74% of companies plan to outsource IT security
  • 73% of organizations say cloud migration is their top digital priority
  • The global software outsourcing market is projected to reach $108.7 billion by 2025
  • The global cybersecurity outsourcing market is projected to reach $64.5 billion by 2026

Interpretation

In the ever-evolving world of business, it seems like the only thing that's not being outsourced is the water cooler gossip. With numbers skyrocketing faster than an overly ambitious drone delivery, the outsourcing industry's grip on IT functions is tighter than a cybersecurity algorithm. Companies are shedding in-house IT responsibilities like a snake sheds its skin, all in the pursuit of cost savings and a technological edge. It's a race to the cloud, with firms clamoring for a piece of that $832.1 billion pie by 2025 while also outsourcing their way to software development nirvana. So, buckle up your virtual seatbelt, because in this digital era, outsourcing isn't just a strategy – it's a way of business life.

Market Projections

  • The global BPO market is expected to reach $405.6 billion by 2027
  • The global HR outsourcing market is projected to reach $45.8 billion by 2027
  • The global finance and accounting outsourcing market is expected to reach $53.4 billion by 2026
  • The global legal process outsourcing market is expected to reach $35.9 billion by 2025
  • The global knowledge process outsourcing market is projected to reach $124.29 billion by 2025
  • The global recruitment process outsourcing market is expected to reach $20.8 billion by 2027
  • The global IT outsourcing market is expected to reach $397.6 billion by 2025
  • The global engineering services outsourcing market is projected to reach $1.5 trillion by 2025
  • The global research and development outsourcing market is expected to reach $548.4 billion by 2025
  • The global payroll outsourcing market is projected to reach $10.5 billion by 2027
  • The global procurement outsourcing market is projected to reach $7.3 billion by 2027
  • The global market research outsourcing market is projected to reach $10.5 billion by 2027

Interpretation

As the outsourcing industry continues to soar to new heights with mind-boggling projections that could make even Scrooge McDuck blush, one thing is apparent: businesses worldwide are increasingly choosing to delegate tasks to external experts rather than tackling them in-house. With billions upon billions of dollars flowing into BPO, HR, finance, legal, knowledge, recruitment, IT, engineering, R&D, payroll, procurement, and market research outsourcing markets, it seems that the phrase "out of sight, out of mind" has transformed into "out of office, into profit." Whether this trend represents a triumph of efficiency or a surrender of control is a question only time - and the balance sheets - can truly answer.

Market Size

  • The global outsourcing market reached $92.5 billion in 2019
  • 68% of US companies outsource some part of their workforce
  • 85% of small businesses plan to increase their use of freelancers
  • 66% of companies with over 50 employees use outsourcing
  • 37% of small businesses outsource at least one business process

Interpretation

The outsourcing industry's growth to a staggering $92.5 billion in 2019 is a clear reflection of its vital role in today's business landscape. With 68% of US companies embracing outsourcing to optimize their workforce, it seems the trend is here to stay. As small businesses increasingly turn to freelancers for expertise and flexibility, it's evident that the gig economy is reshaping traditional employment models. And with over two-thirds of medium to large companies leveraging outsourcing, it's apparent that collaboration, whether across borders or specialties, is the key to staying competitive in a rapidly evolving market. So, whether it's a Fortune 500 corporation or a budding startup, the outsourcing puzzle piece seems to fit seamlessly into the modern business strategy.

Outsourcing Destinations

  • India holds a 55% share of the global outsourcing market
  • Eastern Europe's IT outsourcing market is growing at a rate of 20-25% annually
  • India's IT exports are expected to reach $350 billion by 2025
  • Poland's IT outsourcing market is growing at a rate of 5-10% annually
  • Ukraine's IT outsourcing market is growing at a rate of 20-25% annually
  • Romania's IT outsourcing market is growing at a rate of 15-20% annually
  • Bulgaria's IT outsourcing market is growing at a rate of 15-20% annually
  • Vietnam's IT outsourcing market is growing at a rate of 20-25% annually
  • Mexico's IT outsourcing market is growing at a rate of 10-15% annually

Interpretation

The global outsourcing market is like a high-stakes poker game, with India confidently holding the majority of chips at 55%. Meanwhile, the underdogs from Eastern Europe are mounting their own strategic plays, with impressive growth rates showing that they are serious contenders at the table. It's a race to the top as India aims for a staggering goal of $350 billion in IT exports by 2025, while countries like Poland, Ukraine, Romania, Bulgaria, Vietnam, and Mexico are all in hot pursuit with their own steady climbs. The outsourcing industry landscape is constantly evolving, with each player vying for their slice of the lucrative pie. It's a thrilling game of skill, strategy, and economic prowess - may the best outsourcer win!

Outsourcing Motivations

  • Cost reduction is the primary reason for outsourcing for 59% of companies
  • 70% of companies cite access to expert talent as a key reason for outsourcing
  • 58% of businesses outsource to focus on their core business functions
  • 54% of companies use outsourcing to improve business processes
  • 57% of businesses use outsourcing to enable business transformation
  • 35% of companies outsource to improve their company's focus
  • 80% of logistics leaders plan to increase their outsourcing budget in the coming years
  • 59% of businesses use outsourcing to reduce costs
  • 51% of companies outsource manufacturing processes
  • 44% of companies outsource to gain access to resources not available internally

Interpretation

In a world where companies are constantly striving to cut costs, optimize processes, and stay ahead of the competition, outsourcing has become the unsung hero of modern business strategy. With a majority of businesses choosing to outsource in order to reduce costs, access expert talent, and improve business focus and processes, it's clear that the outsourcing industry is not just a trend but a strategic imperative. And as logistics leaders gear up to ramp up their outsourcing budgets, it seems the outsourcing wave is only gaining momentum. So, if you want to transform your business, streamline operations, and leverage external expertise, maybe it's time to hop on the outsourcing bandwagon – after all, everyone else is doing it!

References