As the global economy continues to evolve, the outsourcing industry plays a pivotal role in shaping modern businesses. Understanding key statistics and trends in this dynamic sector can offer valuable insights for companies looking to optimize cost efficiencies, streamline processes, and spur growth. In this blog post, we will delve into the latest outsourcing industry statistics to provide a comprehensive overview of the landscape and shed light on emerging opportunities and challenges.
The Latest Outsourcing Industry Statistics Explained
Outsourcing market revenue amounted to US$92.5 billion in 2019.
The statistic ‘Outsourcing market revenue amounted to US$92.5 billion in 2019’ indicates the total amount of revenue generated globally from outsourcing services in the year 2019. This revenue represents the payments made by companies or organizations to third-party service providers for tasks or functions that are traditionally performed in-house. The substantial size of the outsourcing market revenue highlights the increasing trend among businesses to leverage external expertise and resources to improve efficiency, reduce costs, and focus on core competencies. The figure serves as a quantifiable measure of the scale and significance of outsourcing as a strategic business practice in the modern economy.
The business process outsourcing (BPO) market worldwide is forecast to reach a size of 405.6 billion U.S. dollars by 2027.
This statistic indicates that the global market for business process outsourcing (BPO) is expected to grow significantly and reach a value of 405.6 billion U.S. dollars by the year 2027. This projection suggests a substantial increase in demand for BPO services across various industries as companies seek to improve efficiency, reduce costs, and focus on their core business activities. Factors driving this growth may include globalization, technological advancements, and the need for streamlined business operations. As a result, the BPO industry is likely to experience continued expansion over the coming years, presenting opportunities for service providers and contributing to the overall economic landscape.
India is the top country for business process outsourcing, with a 65% share of the global market.
The statistic indicates that India is the leading destination for business process outsourcing (BPO) services, capturing a significant majority (65%) of the global market share. This dominance underscores India’s prowess in offering cost-effective and high-quality BPO solutions to organizations worldwide. The country’s skilled workforce, proficiency in English, favorable time zone differences, and robust infrastructure have contributed to its success in attracting outsourcing contracts from various industries. As a result, many multinational companies choose to outsource their non-core business functions to Indian service providers, seeking efficiency and cost savings. India’s continued leadership in the BPO sector further solidifies its reputation as a preferred outsourcing destination for companies looking to streamline operations and enhance competitiveness.
In 2019, the outsourcing industry in the Philippines generated US$26.3 billion in revenues.
The statistic that the outsourcing industry in the Philippines generated US$26.3 billion in revenues in 2019 indicates the substantial economic impact of this sector on the country’s economy. This figure highlights the significant contribution of outsourcing services such as call centers, IT services, and business process outsourcing to the overall GDP of the Philippines. It reflects the country’s position as a key player in the global outsourcing market, attracting foreign investment and creating employment opportunities for a large number of Filipinos. The steady growth of the outsourcing industry signifies its resilience and potential for further expansion, positioning the Philippines as a competitive destination for outsourcing services on a global scale.
The global medical outsourcing market size was valued at USD 210.0 billion in 2020.
The statistic that the global medical outsourcing market size was valued at USD 210.0 billion in 2020 indicates the total amount of revenue generated from outsourcing medical services such as billing, coding, transcription, clinical research, and telemedicine across the world during that year. This large market size suggests a significant reliance on outsourcing within the medical industry, likely driven by factors such as cost-efficiency, access to specialized expertise, and scalability. The value of USD 210.0 billion also highlights the substantial economic impact and potential growth opportunities in the medical outsourcing sector, making it a key area of interest for healthcare organizations, service providers, and investors globally.
The global legal process outsourcing market size was valued at USD 5.4 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 31.8% from 2021 to 2028.
This statistic indicates that the global legal process outsourcing market was worth USD 5.4 billion in 2020, representing the total value of all legal process outsourcing services provided worldwide. The forecast projects a significant growth trajectory for the market, with a compound annual growth rate (CAGR) of 31.8% estimated from 2021 to 2028. This implies that the market is expected to experience substantial expansion over the specified period, potentially reaching a much higher value by 2028. The projected growth rate signals a strong demand for legal process outsourcing services, likely driven by factors such as cost-efficiency, globalization, and technological advancements in the legal industry.
Over 78% of all companies worldwide feel positive about their outsourcing partners.
The statistic “Over 78% of all companies worldwide feel positive about their outsourcing partners” suggests that a significant majority of companies have a favorable perception of their outsourcing relationships. This high percentage indicates that the vast majority of businesses are satisfied with the services and benefits provided by their outsourcing partners, leading to positive outcomes and successful collaboration. Such positive sentiments may stem from factors such as cost-efficiency, access to specialized skills, improved productivity, and strategic partnerships that enhance competitiveness. Overall, this statistic highlights the widespread confidence and satisfaction that companies have in their outsourcing engagements, showcasing the importance and value of outsourcing as a strategic business practice in the global marketplace.
HSBC, the largest company for outsourced assets, managed 2.4 trillion U.S. dollars in outsourced assets in 2017.
The statistic presents that HSBC, the largest company in terms of outsourced assets, managed a total of 2.4 trillion U.S. dollars in outsourced assets in the year 2017. This figure reflects the significant scale and scope of HSBC’s operations in the realm of managing assets on behalf of clients. Outsourced assets refer to financial holdings and investments that are managed by a third-party entity, such as HSBC in this case, on behalf of individuals, corporations, or other entities. By managing such a substantial amount of outsourced assets, HSBC demonstrates its prominence and expertise in the financial industry, providing a glimpse into the vast resources and responsibilities it undertakes in handling clients’ investments and assets.
In 2019, the Americas accounted for 60% of the business services sourcing market.
In 2019, the Americas accounted for 60% of the business services sourcing market, indicating that the region held a significant share of the market relative to other regions worldwide. This statistic suggests that companies in the Americas were major players in outsourcing business services, likely driven by factors such as access to a skilled workforce, cost-effectiveness, and the presence of established outsourcing companies in the region. The high percentage signifies that the Americas were a key hub for businesses looking to outsource various services, potentially reflecting the region’s competitiveness and attractiveness in the outsourcing industry during that year.
The outsourcing industry is expected to grow at a Compound Annual Growth Rate (CAGR) of 4.4% till 2027.
The statistic indicating that the outsourcing industry is projected to grow at a Compound Annual Growth Rate (CAGR) of 4.4% until 2027 signifies that the industry is anticipated to expand steadily over the specified period. The CAGR provides a standardized measure to understand the average annual growth rate of the industry, smoothing out any fluctuations that may occur. A growth rate of 4.4% suggests a moderate yet consistent upward trajectory in the outsourcing sector, implying that outsourcing services are likely to remain in demand and continue to attract businesses seeking cost-effective solutions and specialized expertise. This projection can help industry stakeholders and investors make informed decisions and strategic plans to capitalize on the growth opportunities in the outsourcing market.
In 2020, the UK outsourcing market was worth £3.1 billion.
The statistic “In 2020, the UK outsourcing market was worth £3.1 billion” represents the total value of outsourced services in the United Kingdom for the year 2020. This figure indicates the amount of money spent by businesses and organizations in the UK to contract out various functions, such as IT services, customer support, finance, and human resources. The size of the outsourcing market provides valuable insight into the extent to which companies are relying on third-party service providers to fulfill their operational needs, potentially due to factors such as cost savings, access to specialized expertise, or increased flexibility. Additionally, changes in the value of the outsourcing market from year to year can reflect broader trends in the economy and business landscape, as well as shifts in strategic priorities among organizations.
Companies are increasing investment into robotic process automation (RPA) capabilities, projecting spending of around $5 billion by 2024.
The statistic highlights the growing trend among companies to invest in robotic process automation (RPA) capabilities, with a projected spending reaching around $5 billion by the year 2024. This suggests a significant shift towards incorporating automation technology into business processes, aiming to streamline operations, improve efficiency, and reduce costs. The increasing investment in RPA reflects a recognition by companies of the potential benefits of automation in enhancing productivity and competitiveness in an evolving business landscape. The projected spending also signifies a confidence in the long-term value and impact that RPA can bring to organizations across various industries.
The cloud-based BPO (Business Process Outsourcing) market is expected to reach $94.522 billion by 2022.
The statistic states that the cloud-based Business Process Outsourcing (BPO) market is projected to grow significantly, with an expected value of $94.522 billion by the year 2022. This growth is indicative of the increasing adoption of cloud technology in the BPO industry, which offers benefits such as scalability, cost-efficiency, and remote access to outsourcing services. The forecasted market size reflects the growing demand for cloud-based BPO solutions by businesses looking to streamline operations, enhance productivity, and leverage advanced technologies for improved efficiency and competitiveness in today’s digital economy.
Outsourcing of payroll services has a market revenue of around the US $22 billion in 2019.
The statistic that outsourcing of payroll services has a market revenue of around the US $22 billion in 2019 indicates the significant size and value of the outsourcing industry within the payroll services sector. This figure suggests that many businesses are opting to outsource their payroll functions to third-party service providers rather than managing them in-house. The substantial market revenue reflects the growing trend of businesses seeking cost-effective and efficient solutions for managing their payroll processes. Additionally, it highlights the opportunities and competition within the payroll services market, with service providers vying for a share of this multi-billion dollar industry by offering valuable and reliable outsourcing services to businesses.
In 2018, the United States spent the most on technology outsourcing services with $321.6 billion.
In 2018, the United States spent the most on technology outsourcing services with a total expenditure of $321.6 billion. This statistic highlights the significant investment made by businesses and organizations in outsourcing technology services to external providers. Outsourcing enables companies to access specialized skills, cost-effective solutions, and increased flexibility in their operations. The substantial amount of spending by the United States reflects the growing reliance on outsourcing to leverage technological advancements and stay competitive in the global market. This data underscores the crucial role that technology outsourcing plays in driving innovation and efficiency for businesses across various industries in the United States.
North America will account for 49% of the global IT outsourcing market by 2022.
The statistic indicates that by the year 2022, North America is projected to hold a significant share of the global IT outsourcing market, accounting for 49% of the total market. This suggests that North American companies are increasingly leveraging outsourcing services for their IT needs, potentially due to factors such as cost efficiency, access to specialized skills, and scalability of operations. The dominance of North America in the IT outsourcing market highlights the region’s strategic position in driving innovation and efficiency through outsourcing partnerships, and indicates a strong demand for IT services within the region.
Employee layoffs were reported by 69% of companies due to business process outsourcing.
The statistic indicates that 69% of companies reported employee layoffs as a direct consequence of engaging in business process outsourcing (BPO). This implies that a significant proportion of companies that outsourced their processes experienced restructuring that led to job cuts within their workforce. BPO typically involves contracting external service providers to handle specific business functions, and in some cases, this can result in redundancies or changes in the internal workforce. The statistic highlights the potential impact of BPO on employment within companies, showcasing the complex relationship between efficiency gains from outsourcing and the human resource implications of such decisions.
References
0. – https://www.www.grandviewresearch.com
1. – https://www.www.ibpap.org
2. – https://www.litslink.com
3. – https://www.www.statista.com
