Today, we’re going to explore some of the most valuable Outsourcing statistics for 2023.

Let’s get started.

Key Outsourcing Statistics 2023 – MY Choice

  • 45% of companies have planned to increase their outsourcing since the pandemic, often focusing on finding skillsets they can’t access in-house.
  • The cloud allows around 90% of companies to embrace more outsourcing opportunities by enabling teams to reach a wider range of distributed professionals.
  • By the end of 2023, IT outsourcing should exceed a spend of $1.3 trillion as companies increase their search for digital transformation experts.
  • The number one reason for outsourcing for 70% of companies is cost reduction, as outsourcing lowers the costs associated with hiring in-house staff.
  • Around 24% of small companies say they outsource to increase efficiency levels. Many small businesses also use outsourcing to access specialist skills.
  • Business process outsourcing is set to hit a value of $620 billion by 2032, as companies continue to work collaboratively with contractors.

Outsourcing General Stats

Table 1: Global Outsourcing Statistics [2023]

Total Global Outsourcing Market Value$92.5 billion
Share of US Market in Global Outsourcing Revenue$62 billion (67%)
Compound Annual Growth Rate of Outsourcing Market4%
Primary Reason for Outsourcing (US)Cost savings (59%)
Percentage of US Businesses Outsourcing at Least One Department66%
Leading Industry for Outsourcing (US)Information Technology (IT)
Percentage of IT Department Budget Dedicated to Outsourced Tasks (US)13.6%
Percentage of IT Tasks Outsourced (US)37%
Percentage of Global Businesses with Positive Attitude towards Outsourcing Partners78%

Table 2: Jobs Lost to Outsourcing Statistics [2023]

Annual US Jobs Outsourced300,000
Large Consumer Products Companies Outsourcing Workforce (US)68%
Total Outsourced Workers Hired by US Companies in the 2000s2 million
American Workforce Cut by US Companies in the 2000s2.9 million
Outsourced Workers Overseas Hired by US Companies in the 2000s2.4 million
Large Multinational Companies Outsourcing Overseas (US)75%
Percentage of Small Businesses Outsourcing to Increase Efficiency (US)24%
China: Top Country US Businesses Outsource toChina
Top 5 Countries US Businesses Outsource toChina, Philippines, Taiwan, Ukraine, Vietnam

Table 3: Global Market Size of Outsourced Services by Revenue [2000-2019]

YearInformation Technology OutsourcingBusiness Process OutsourcingTotal Outsourced Services Revenue
2000$21.3 billion$2.7 billion$24 billion
2005$39.1 billion$9.5 billion$48.6 billion
2010$59.1 billion$20.7 billion$80.6 billion
2015$66.9 billion$25.9 billion$92.8 billion
2019$66.5 billion$26 billion$92.5 billion

Note: All values are in US dollars ($) unless otherwise stated.

Outsourcing Industry Statistics

  1. Up to 48% of companies choose to outsource offshore.
  2. 45% of companies planned to increase their outsourcing since the COVID19 pandemic started due to a lack of skillset in-house.
  3. The top reason for outsourcing among 70% of companies is cost reduction.
  1. Up to 85% of logistics leaders are expected to see an increase in the outsourcing budget.
  2.  India is continuing to grow as the top country to outsource business from.

Global Outsourcing Market Statistics 2023

  1. The primary enabler in outsourcing for around 90% of companies is cloud.
  2. 62% of companies around the globe are looking to renegotiate their outsourcing terms and contracts.
  1. Only 25% of UK-based companies have never outsourced.
  2. 32% of companies believe they will outsource less after the COVID19 pandemic ends.
  3. IBM is the largest outsourcing business in the world.

United States Outsourcing Statistics 2023

  1. Approximately 300,000 jobs are outsourced every year in the US.
  1. The number of workers US overseas affiliates hired in 2018 was 14.4 million
  2. Almost 60% of US marketers didn’t see any COVID-related changes in the outsourcing marketing activities.


Table 1: Top Origins of Outsourcing Deals by Value

RankCountryPercentage of Total Outsourcing Deals
1United States84.2%
2United Kingdom5.2%
3Other countries10.6%

Note: Data reflects the percentage of total outsourcing deals by value globally.

Table 2: Regional Distribution of Outsourcing Deals

RegionPercentage of Total Outsourcing Deals
North America37.4%
South America4.6%
Europe, Middle East, and Africa35%
Asia and Oceania23%

Note: Data reflects the percentage of total outsourcing deals by region globally.

HR outsourcing Stats

What are the services offered by most HR outsourcing companies in 2023?

According to HR outsourcing statistics for 2023, the majority of services offered by most HR outsourcing companies are consulting (45%), benefits administration (36%), time tracking (24%), insurance services (19%), and performance management (10%).

What is the top concern for businesses that choose to outsource HR?

The top concern for businesses that choose to outsource HR, as revealed by the same HR outsourcing statistics, is recruiting. About 51% of businesses stated that recruiting is their main concern, and the reason why they would choose to outsource HR services.

What percentage of HR outsourcing services is devoted to consulting?

According to HR outsourcing statistics for 2023, consulting is the most commonly offered service by HR outsourcing companies, representing 45% of their services.

How much of HR outsourcing services is allocated to benefits administration?

The same HR outsourcing statistics for 2023 revealed that benefits administration accounts for 36% of HR outsourcing services.

What is the percentage of HR outsourcing services that includes time tracking?

A: HR outsourcing companies allocate 24% of their services to time tracking, according to HR outsourcing statistics for 2023.

How much of HR outsourcing services is dedicated to insurance services?

Insurance services account for 19% of the services offered by HR outsourcing companies, according to HR outsourcing statistics for 2023.

What proportion of HR outsourcing services is allocated to performance management?

According to HR outsourcing statistics for 2023, HR outsourcing companies devote 10% of their services to performance management.

Outsourcing Pros and Cons Statistics 2023

What percentage of companies are willing to outsource their strategic planning?

Only 11% of companies are willing to risk outsourcing their strategic planning, as stated by 89% of companies who would not risk it.

What percentage of businesses think outsourcing results in lower quality work?

About 50% of businesses believe that outsourcing work results in lower quality.

What are some concerns businesses have in terms of outsourcing?

One major concern businesses have with outsourcing is data security, with 68% of outsourcing companies claiming to address this issue as they transition to cloud technology.

Are big companies more likely to outsource than smaller ones?

Based on a survey, big companies with between 10,001 and 50,001 workers are more likely to outsource, with 61.1% of those companies having plans to implement some outsourcing. Smaller companies with 1,000 to 10,000 workers are less likely, with about 51.6% planning on outsourcing.

Do businesses have a positive experience with outsourcing?

Overall, businesses tend to have a positive experience with outsourcing, with 78% saying they like their outsourcing partners.

Small Business Outsourcing Statistics 2023

Table 1: Small Business Outsourcing Statistics

CategoryPercentage of small businesses
Small businesses outsourcing at least one business process37%
Small businesses planning to outsource at least one business process in the future52%
Most popular outsourced processesAccounting (37%) and IT services (37%)
Other common outsourced processesDigital marketing (34%), development (28%), human resources (24%), and customer support (24%)
Small businesses outsourcing to increase efficiency24%
Small businesses outsourcing for increased expertise18%
Small businesses outsourcing for flexibility16%
Small businesses outsourcing to allow employees to perform other tasks15%

Table 2: Challenges Faced by Small Businesses in Outsourcing

ChallengePercentage of small businesses
High costs23%
Difficulty in communicating with outsourced teams21%
Outsourced teams failing to meet deadlines14%
Outsourced teams not following instructions12%

Table 3: Payroll Outsourcing by Organization Size

Organization sizePercentage of organizations that fully outsource payroll services
2,500 or fewer employees15%
10,000 or more employees8%

Note: HR software solutions like Rippling are making it easier for organizations to administer payroll without sacrificing efficiency.

  1. Approximately 24% of small companies outsource to increase levels of efficiency.
  2. A large number of small businesses use outsourcing as a way of accessing specialist skills.
  3. Larger businesses are 66% more likely to outsource compared to small businesses.
  1. Up to 37% of small businesses outsource for at least one of their business processes.

Table 1: Outsourcing Market Value and Growth

YearMarket Value (in billion USD)Growth (in billion USD)

Table 2: Impact of Outsourcing on American Manufacturing Industry

1979-20098 million American manufacturing jobs were outsourced
1998-200812.5% decline in manufacturing plants
June 1979 to Dec 200919.5 million to 11.5 million jobs in the industry

Table 3: Outsourcing Trends

TrendPercentage (%)
American companies planning to relocate outsourced jobs back to the U.S.4%
Companies planning to outsource more work70%
Companies planning to significantly increase outsourced jobs35%
Predicted global outsourcing market growth to happen in the United States38%
Increase in the number of U.S.-based freelancers22%

Note: The above tables are based on the data available as of 2021.

Business Process Outsourcing Statistics 2023

  1. Business process outsourcing is set to hit a market value of $620 billion by the year 2032.
  1. Up to 54% of companies state that they haven’t seen any change in service quality when choosing to outsource their business process.
  1. India, China, and Malaysia are the top countries for business process outsourcing.


Table 1: Vital Outsourcing Statistics [2023]

Percentage of businesses that outsource59%
Percentage of small businesses that outsource to get help from an expert26%
Percentage of businesses with 11 to 50 employees that outsource to get help from an expert17%
Percentage of businesses with 51 to 250 employees that outsource to get help from an expert14%
Percentage of businesses with 251 to 500 employees that outsource to get help from an expert16%

Table 2: Outsourcing Statistics by Most Common Reasons

Reasons for OutsourcingPercentage of Companies
To cut costs59%
To get help from an expert26%

Table 3: Expert Outsourcing by Company Size

Company SizePercentage of Businesses
Small businesses (10 or fewer employees)26%
Businesses with 11 to 50 employees17%
Businesses with 51 to 250 employees14%
Businesses with 251 to 500 employees16%

Table 4: Labor Cost Savings through Outsourcing

Type of OutsourcingPercentage of Labor Cost Savings
Overseas outsourcing70% to 90%

IT Outsourcing Statistics 2023

IT Outsourcing Statisticsdata
Estimated IT outsourcing expenditure by 2023$1.3 trillion
Predicted CAGR of IT outsourcing market by 20277.7%
Forbes Global 2000 companies that used IT outsourcing92%
Expected value of cloud computing market by 2027$1,241 billion
CAGR of cloud computing sector17.9%
Small businesses that outsourced IT services in 201937%
Predicted rise of start-up software development outsourcing by 202370%
  1. The IT outsourcing market will exceed $1.3 trillion by the end of 2023.
  1. 83% of IT leaders would like to outsource security.
  1. More than 65% of organizations are planning on increasing or maintaining their IT outsourcing efforts in the upcoming 2 years.
  2. IT and business service outsourcing hit record levels in 2021.
  3. Outsourcing accounted for 13.6% of the total IT budget in 2020/2021.
  1. The most frequently outsource IT services function is software app development.

Q: What is the estimated expenditure for IT outsourcing by the end of 2023?

A: IT outsourcing expenditure is expected to exceed $1.3 trillion by the end of 2023.

Q: How many of the Forbes Global 2000 companies used IT outsourcing in 2019?

A: According to recent ISG research, over 9 in 10 of the top 2000 companies worldwide had IT outsourcing contracts in 2019.

Q: What is the expected market size of the cloud computing industry by 2027?

A: According to MarketsandMarkets, the cloud computing sector is expected to reach $1,241 billion by 2027, growing at a steady CAGR of 17.9%.

Q: What percentage of small businesses outsourced their IT services in 2019?

A: Clutch revealed that almost 40% of small businesses outsourced their IT services in 2019, as they often lack in-house expertise to complete projects on time and under budget.

Q: What is the expected increase in start-up software development outsourcing in 2023?

A: According to Commit’s 2022 State of Tech Staffing Report, start-ups are expected to outsource 70% more software development tasks in 2023 than their 2022 volume, accounting for over a third of a company’s software personnel on average.


Outsourcing Statistics by Company Size
Percentage of small businesses outsourcing80%
Percentage of large businesses outsourcingMore than 50%
Percentage of businesses with 50 or fewer employees outsourcing29%
Percentage of businesses with more than 50 employees outsourcing66%
Large businesses are 128% more likely to outsource than small businesses.
Most Commonly Outsourced Departments Among Small Businesses
Accounting and information technology37%
Digital marketing34%
Human resources and customer support24%
Most Commonly Outsourced Tasks and Departments
Financial service executives outsourcing71%
Large consumer products companies outsourcing68%

Outsourcing Cost Savings Statistics 2023

  1. 27% of businesses reported a 10-20% cost saving when implementing RPA (robotic process automation).
  1. Outsourcing in the Philippines can reduce costs by 70-90%.
  2. Up to 70% of businesses chose to partner with an outsourcing company for cost reduction purposes in 2020.

Canada Outsourcing Statistics

Table 1: Outsourcing Statistics in Canada

Job loss due to outsourcing1 in 25 Canadian workers
Outsourcing spending by federal government$11.9 billion (CAD)
Spending on IT consultants$1.1 billion (CAD) per year
Spending on management consultants$284 million (CAD) per year
Spending on temporary help services$59 million (CAD) per year
Total spending on technology outsourcing by businesses and government$15 billion (CAD)
Total outsourcing spending in Canada$7.1 billion (CAD)
Offshoring for insurance services$2.9 billion (CAD)
Business, financial, and insurance services’ share in offshoring by Canadian industries78.5%
Imports of financial and insurance services used for offshoring55%

Q: What is the impact of outsourcing on Canadian workers?

A: Outsourcing in Canada has led to the loss of jobs for some workers. According to Pearsoned and CBC, one in 25 Canadian workers loses their job due to outsourcing. The jobs that are outsourced are mainly accountant positions that go to Indian workers. CIBC, one of the biggest companies in Canada, has outsourced and pulled in $1.4 billion in profit.

Q: How much money has the Canadian federal government spent on outsourcing to IT consultants?

A: Between 2011 and 2018, the Canadian federal government outsourced over $11.9 billion to IT consultants, as well as management contractors and temporary help contractors. IT consultants account for seven out of ten dollars spent on personnel outsourcing in Canada.

Q: What is the estimated amount of money that Canadian businesses and government will spend on technology outsourcing in 2021?

A: The Canadian businesses and government will spend an estimated $15 billion on technology outsourcing in 2021, according to Statista. Technology outsourcing is dominant in Canada and has been increasing over the years, with spending by business and government worth $13 billion in 2016, $14 billion in 2017 and 2018, and $15 billion in 2019 and 2020.

Q: What industries are most affected by outsourcing in Canada?

A: Business, financial, and insurance services accounted for a massive 78.5% of business offshoring done by Canadian industries, with the offshoring for insurance services worth $2.9 billion in 2003. Additionally, up to 55% of the total imports of financial and insurance services are used for offshoring.

Freelancing Stats

Table 1: Freelancing Statistics in the US

Number of Americans doing freelance workOver 50 million
Increase in independent workers from 2020-202134%
Number of Americans working independently51.1 million
Number of full-time independent contractors17 million
Percentage of American workforce made up of freelancers36%
Total contribution of freelancers to US economy$1.3 trillion
Percentage of non-freelancers considering freelancing in the future56%
Percentage of freelancers providing skilled services53%
Percentage of postgraduate degree holders doing freelance work51%

Table 2: Trend of Google Searches for “Freelancing” Over Time

YearGoogle Searches for “Freelancing”


Table 1: Outsourcing Statistics by Job Vulnerability

Jobs Vulnerable to OutsourcingNumber
Percentage of jobs in the US20.5%

Table 2: Outsourcing Market by Type

Type of OutsourcingRevenue in 2019 (USD billions)
Technology Outsourcing66.5
Business Process26

Table 3: Outsourcing Statistics by Department

DepartmentPercentage of Organizations in North America Engaging in IT Outsourcing
Information Technology92%

Table 4: Top 10 Vulnerable Occupations to Outsourcing

RankOccupationAnnual Wage (USD)
1Computer Programmers82,240
2Data Entry Keyers33,890
3Electrical and Electronics Drafters64,230
4Mechanical Drafters57,960
5Computer and Information Systems Managers100,640
9Mathematical Science Occupations101,360
10Film and Video Editors58,210
  • Despite, or perhaps because of the COVID-19 pandemic, the percentage of their budget IT departments spend on outsourcing continued to rise from 12.7% in 2019 to 13.6% in 2020.

Outsourcing Statistics UK by function and industry

Function/IndustryOutsourcing Statistics UKMotivation
IT support34% of UK-based businesses outsourced in 2019Lack of necessary IT staff (48%), better results or cheaper (30%), reduces staff costs (29%), increases efficiency (28%)
Payroll28% of company executives outsourced in 2019Cost (41%), deficiency in skilled staff (34%)
Accounting33% of respondents outsourced bookkeeping services in 2020To stay competitive (64%), positive effect (73%), intending to outsource bookkeeping (33%), payroll (19%), expenses (15%), and compliance function (18%)
Call CentreOutsourcing to South Africa saves almost £12,000 a yearPredominantly for call centre outsourcing services (73%), costs of running a call centre in UK >£17,000 vs South Africa ~£5,500
Marketing10% of UK businesses outsourced in 2020Consider outsourcing IT (37%) and marketing (32%) as a result of the pandemic, low outsourcing rate (10%)

Q: What percentage of UK businesses outsourced IT support in 2019?

A: According to YouGov, 34% of UK based businesses outsourced IT support in 2019, making it the most outsourced function.

Q: Why do businesses in the UK outsource IT support?

A: The primary motivation for outsourcing IT support is a lack of necessary IT staff (48%). Other reasons include better results or cost-effectiveness (30%), reduced staff costs (29%), and increased efficiency (28%).

Q: What percentage of UK company executives decided to outsource payroll in 2019?

A: As reported in 2019, 28% of company executives in the UK decided to outsource payroll due to cost (41%) and a deficiency in skilled staff (34%).

Q: What effect can outsourcing have on UK accountants?

A: According to a joint investigation by ForrestBrown and AccountancyAge, 73% of UK accountants admitted to a positive effect outsourcing could have on their practices. Additionally, almost two thirds (64%) agreed that to stay competitive, they have to outsource some higher-value services.

Q: What services do UK businesses plan to outsource in the near future?

A: According to the same investigation, outsourced bookkeeping (33%), payroll services (19%), expenses (15%), and the compliance function (18%) are all expected to be outsourced in the near future.

Q: How much money can UK businesses save by outsourcing call centres to South Africa?

A: According to outsourcing facts, outsourcing a call centre to South Africa can save UK businesses almost £12,000 a year, as annual costs of running a call centre in the UK amount to over £17,000, while these costs stand at around £5,500 in South Africa.

Q: What percentage of UK businesses outsourced marketing in 2020?

A: According to a study by LiveArea conducted in April 2020, only 10% of UK businesses outsourced marketing at the time. However, 37% said they would consider outsourcing IT and 32% said they would consider outsourcing marketing as a result of the pandemic.

UK Outsourcing Statistics

Table 1: Public Sector Outsourcing Statistics in the UK

YearPercentage of Public Sector Contracts Awarded to Sole Bidder

Table 2: Reasons for Outsourcing in the UK

MotivatorPercentage of Respondents
Cost Reduction71%
Business Transformation50%
Quality of Service Improvement50%
Recruitment Time Saving40%
Greater Project Management Efficiency28%
Improvement of Quality (for UK Workforce)88%
Building and Controlling Intellectual Property63%

Table 3: IT Job Positions in the UK in 2020

Estimated IT job positions850,000
Estimated IT job positions (UK)180,000

Table 4: Outsourcing Expectations of UK Businesses in 2020

ExpectationPercentage of Respondents
Increase Outsourcing30%
Decrease Outsourcing15%
Undisclosed Type/Number of Jobs19%

What makes the UK open to offshore outsourcing compared to other European markets?

A: The UK is considered the most open to offshore outsourcing compared to other European markets. The nation’s cost-cutting corporate culture and historical ties to numerous countries around the world contribute to this openness. Additionally, since English is the official language of the United Kingdom, there are few linguistic barriers, making it easier for offshore providers to reach the British market.

Q: What percentage of public sector contracts went to the sole bidder in 2018?

A: In 2018, 23% of all public sector contracts went to the sole bidder.

Q: Why do UK outsourcing companies lack good judgment?

A: In recent years, many UK outsourcing companies lacked good judgment, which was commonly manifested through expansion to areas where they lack expertise by pursuing new contracts or acquiring companies.

Q: Why do companies in the UK outsource?

A: According to a Clockers survey of more than 3,000 start-ups in the UK, 67% outsourced in need of a skilled workforce in 2019. The top reasons for outsourcing were to reduce costs, transform business, and improve the quality of service.

Q: What was the projected number of IT job positions in the UK in 2020?

A: London Technology Week estimated that there should have been 850,000 IT job positions in Europe in 2020, with the UK’s share being around 180,000. However, the British IT workers did not experience an increase in their salaries as their projected number did not meet the market’s demand.

Q: What do UK companies plan to do regarding outsourcing in 2021?

A: According to outsourcing statistics, 71% of companies in the UK planned to outsource to reduce cost in 2021. Generally, the top reasons for outsourcing next to reducing costs were to transform business and improve the quality of service.

Q: What percentage of UK businesses expected to outsource more in 2020?

A: In 2020, almost a third (30%) of businesses in the UK expected to increase their outsourcing endeavors, perhaps concerned with the rise in tariffs expected after Brexit. However, 15% of organizations planned to ease down on their outsourcing, while 19% could not disclose the type or number of jobs they would outsource in the future.

Operational Outsourcing Statistics

Q: What is Operational Outsourcing?

A: Operational Outsourcing, also known as Business Process Outsourcing (BPO), is the practice of outsourcing everyday operations outside of the core strategy of any business. For instance, enterprises often outsource their front-office and back-office tasks to focus all their efforts on developing new products and services.

Table 1: BPO Market Statistics

BPO market size in 2022$262 billion
Predicted BPO market size in 2030Almost $526 billion
CAGR of BPO market growth9.4%

Table 2: RPA Operational Cost Savings

Percentage of companies using RPA that reported 10-20% savings in operational costs27%
Percentage of companies using RPA that achieved 60% savings in operational costs2%

Table 3: Outsourcing in Small Businesses

Business AreaPercentage of respondents that outsourced
IT services27%
Digital marketing24%
Legal duties23%
Finance duties23%
Customer support19%

Table 4: Call Center Market Statistics

Call center market size in 2022Over $461 billion
Predicted call center market size in 2030$742 billion
CAGR of call center market growth6.1%

Table 5: BPO Financial Services Market Statistics

Value of BPO financial services segmentOver $130 billion
Predicted annual rise of BPO financial services segment in the US7.5%

Table 6: Outsourcing in the Banking Industry

Business AreaPercentage of help desk positions outsourced
Help deskMore than 40%

Table 7: Top Services Offered by HRO Entities

ServicePercentage of HRO entities offering
HR consulting45%
Benefits administration36%
Time tracking24%
Insurance services19%
Performance management10%

Q: What are the different types of Operational Outsourcing?

A: Front-office outsourcing includes tech support, marketing, and sales, while back-office outsourcing concerns accounting, HR, QA, legal, IT support, and payment processing.

Q: What is the predicted market value for BPO?

According to a Grand View Research report, the global BPO market size was $262 billion in 2022 and is expected to grow at a CAGR of 9.4% to over $525 billion by 2030.

Q: How much savings in operational costs can be achieved through Robotic Process Automation (RPA)?

A: According to Deloitte’s 2020 Global Outsourcing Survey, nearly 30% of companies using RPA cut up to 20% of their operational expenses. A small number (2%) also achieved 60% savings.

Q: What are the most common areas of outsourcing for small businesses?

A: According to Clutch’s 2021–2022 survey, 27% of small businesses outsourced their IT services, while 24% outsourced their digital marketing department. Legal and Finance duties were both outsourced by 23% of all respondents, with Development (21%) and Customer Support (19%) being other business areas handled by outsourced teams.

Q: What is the predicted market value for the call center industry?

A: According to a Research and Markets report, the call center industry is expected to reach $742 billion by 2030, with a CAGR of 6.1%.

Q: How much is the BPO financial services segment worth?

A: The BPO financial services segment is currently valued at over $130 billion worldwide, with a projected 7.5% annual rise in the United States, according to Fortunly research.

Q: What percentage of help desk positions in the banking industry are outsourced?

A: According to Orient Software research, two in five help desk positions in the banking industry are outsourced, representing more than 40% of those positions.

Q: What are the top services offered by HRO entities?

A: According to ExtensisHR, the top five in-demand services offered by the HRO industry include HR consulting (45%), Benefits administration (36%), Time tracking (24%), Insurance services (19%), and Performance management (10%).

Outsourcing Statistics UK by service type

Table 1: Application Outsourcing Statistics UK

Service Type2021 Revenue Projection (£ billion)Annual Growth Rate (%)2025 Market Volume Estimate (£ billion)
Application Outsourcing65.267.5

Table 2: Managed Services Contracts in the UK

Service TypeValue in 2020 (£ million)Growth Rate (%)
Total Managed Services Contracts794
Traditional Managed-Service Contracts2,00010
IT Infrastructure and Operations (ITO)1,60036

Table 3: UK Outsourcing Workforce

Year% of Outsourced Workers

Table 4: Outsourcing Contracts in the UK

QuarterValue of Contracts (£ million)Growth Rate (%)Sector
Q1 2019700Various
Q2 201993834Various

Table 5: Business Process Outsourcing Statistics UK

Service Type2021 Revenue Projection (£ billion)Annual Growth Rate (%)2025 Market Volume Estimate (£ billion)
Business Process Outsourcing17.16.2121.8

Table 6: Top Outsourcing Sectors in the UK

Service TypeValue (£ million)
Application and Network Management284
Work outsourced by Manufacturing Companies118

What is the expected revenue for application outsourcing in the UK by 2025?

  • Application outsourcing is expected to reach £7.5 billion in revenue by 2025, allowing companies to reap all the benefits of fully operable enterprise applications with a lower IT budget and fewer employees.

How has high-speed internet affected outsourcing in the UK?

  • High-speed internet has allowed many British companies to outsource customer and technical support, application maintenance, and other jobs to developing countries. The revenue projection for 2021 was £6 billion, with an annual growth rate of 5.26%, leading to the £7.5 billion market volume estimate for 2025.

How much did contracts for UK managed services amount to in 2020?

  • Contracts for the UK managed services in Europe, the Middle East and Africa amounted to almost £800 million in 2020. On average, the values of traditional managed-service contracts grew by 10%, reaching £2 billion, and IT infrastructure and operations management (ITO) saw a 36% increase and amounted to £1.6 billion.

What percentage of the UK population were outsourced workers in 2019?

  • Almost 5% of Britain’s population were outsourced workers in 2019. Around 3.3 million workers in the UK were outsourced, taking lower-paid jobs.

Which companies outsource the most in the UK?

  • Public companies, banks, and retailers have followed the outsourcing trend. Companies such as Sodexo, Axis, Serco, Capita, and Interserve are known to outsource in the UK.

What is the expected revenue for business process outsourcing in the UK by 2025?

  • Business process outsourcing should reach almost £22 billion in revenue by 2025, allowing a company to devote its strengths to activities that make it stand out in the market. With an estimated growth rate of 6.21%, revenue in the business process outsourcing should rise from 2021’s projection of £17.1 billion to £21.8 billion by 2025.

How much were the outsourcing contracts worth in the second quarter of 2019?

  • The second quarter of 2019 saw outsourcing contracts worth £938 million signed, indicating a lively UK outsourcing market. Customer service, HR, revenues, and benefits comprised the majority of outsourced processes, with application and network management and end-user computing seeing the largest sums spent – £284 million and £118 million spent on work outsourced by manufacturing companies followed.

Manufacturing Outsourcing Statistics

Table 1: Top Manufacturing Countries by Output (2019)

RankCountryPercentage of World Output
2United States17.2%

(Source: Safeguard Global)

Table 2: Nike’s Outsourced Production

LocationNumber of Workers

(Source: Outsource Accelerator)

Table 3: Manufacturing Job Losses due to COVID-19

CountryNumber of Jobs Lost
United States740,000

(Source: Public Citizen)

Table 4: Apple’s Supplier Manufacturing Facilities Location

LocationPercentage of Total Production
Asia (total)85%
United States20%

(Source: Verdict)

Table 5: Companies Outsourcing Manufacturing in 2022

Percentage of CompaniesReason for Outsourcing
50%Reduced costs and increased speed without affecting product quality

(Source: Fictiv)

Q: What is the current status of China in global manufacturing?

A: According to a 2019 UN report, China still holds the top position with almost 30% of the world’s goods production, making it the world’s manufacturing powerhouse.

Q: How does outsourcing benefit companies in terms of cost?

A: Outsourcing production of goods can save companies up to 15% in costs, allowing them to focus on product conception and development.

Q: How many workers in Southeast Asia are involved in Nike’s outsourced production?

A: Nike outsources its production to 500,000 workers in Southeast Asia, as reported by Outsource Accelerator, contributing to its 47% market share.

Q: How many manufacturing jobs in the U.S. were lost due to COVID-19?

A: Over 740,000 U.S. manufacturing positions were eliminated during and after the COVID pandemic, according to Public Citizen’s research.

Q: Where are most of Apple’s suppliers’ manufacturing facilities located?

A: 85% of Apple’s suppliers operate their manufacturing facilities in Asia, with China alone contributing 42% of total production.

Q: Did companies increase their manufacturing outsourcing in 2023?

A: Yes, according to the latest State of Manufacturing Report by Fictiv, almost 50% of all companies increased their manufacturing outsourcing efforts in 2022, viewing it as an efficient practice that reduces costs and increases speed without affecting product quality.

How Can These Outsourcing Statistics Help You and Your Business?

Global outsourcing is and will continue to be an ever-growing market, helping countless corporations and small businesses. Outsourcing services are constantly in growing demand, and some of the most popular ones include IT, marketing, and sales.

The outsourcing industry offers an invaluable way for businesses of all sizes to gain access to the crucial talent and expertise they might need in a constantly changing business environment.

Outsourcing also allows businesses to grow more comfortable with working with professionals from various countries of the world in a flexible, cloud-based environment.

By offering the benefits of cost reduction, increased efficiency, and greater competitive advantage, outsourcing is only going to continue growing in the upcoming years.

What is the success rate of outsourcing?

The success rate of outsourcing is high, with approximately three-quarters of outsourcing operations being successful. A recent study found that 78% of businesses that outsource report a positive attitude toward their outsourcing partners, indicating a high level of satisfaction with the results.

What percentage of U.S. companies outsource?

66% of U.S. companies with 50 or more employees outsource, while 29% of U.S. companies with fewer than 50 employees outsource. Additionally, 68% of large U.S. consumer product companies involve outsourcing in at least one department of their organization.

What percentage of American jobs are outsourced?

Roughly 4.5% of American jobs are outsourced each year. In 2021, the U.S. added 6.4 million new jobs at home but also outsourced approximately 300,000 jobs to other countries. This means that approximately 95.5% of the new jobs created in America in 2021 went to Americans, while 4.5% were outsourced.

What countries outsource the most?

The United States and the United Kingdom are the countries that outsource the most. About 68% of large consumer product companies in the U.S. outsource, while approximately 48% of U.K. companies do the same. In terms of the value of outsourcing deals, the U.S. accounts for 84.2% of outsourcing deals compared to the U.K.’s 5.2%.

Why do companies outsource?

The most common reason is to cut costs (59%), followed by enabling focus on core business (57%), solving capacity issues (47%), improving service quality (31%), and meeting business needs (28%).

What is the size of the global outsourcing market?

In 2019, the global outsourcing market was worth $92.5 billion, growing by just over 8% from 2018.

What country is the top global outsourcing destination?

India is the top global outsourcing provider, followed by China, Malaysia, Indonesia, and Brazil.

How much of the Philippines’ economy does outsourcing account for?

Outsourcing accounts for 10% of the Philippines’ economy, with over 1.2 million people employed in the country’s BPO industry.

What percentage of small businesses outsource?

37% of small businesses outsource at least part of their business processes, with accounting (37%), IT services (37%), and digital marketing (34%) being the most commonly outsourced.

What percentage of companies are planning to increase outsourcing?

65% of companies that have outsourced in the past plan to increase their outsourcing efforts, especially in the manufacturing and IT industries.

What are some jobs that companies are not planning on outsourcing?

Sales and marketing jobs are not commonly outsourced, with 80% of companies not planning to outsource these positions. Strategic planning is also among the activities that 89% of businesses would not consider entrusting to external vendors.

How many outsourced jobs are in danger due to automation?

Estimates show that, in the next five years, automation could eliminate about 1 million jobs in the US, Poland, India, and the Philippines.

How is cloud technology being used in outsourcing?

93% of organizations have either adopted or are considering adopting cloud-based solutions to optimize their outsourcing efforts.

What is the US’s role in outsourcing?

The US is responsible for the majority (84.2%) of outsourcing deals globally, with North and South America attracting 42% of overseas outsourcing buyers.

How many jobs do US businesses outsource each year?

US businesses outsource about 300,000 jobs every year, with foreign affiliates hiring 14.3 million workers overseas in 2015 alone.

What was the overall global spending on outsourcing jobs in 2023?

Global businesses outsourced their requirements with a budget of $800 billion in 2023.

What is the expected IT outsourcing spending in 2023?

In 2023, IT outsourcing spending is expected to reach $519 billion, with a significant increase of 22% from the previous year’s overall spending.

What is the expected outsourced spending on business processes in 2023?

The outsourced spending on business processes is expected to reach $212 billion in 2023, a 19% increase from the budget spent in 2019.

How does outsourcing benefit companies, according to Deloitte’s Global Outsourcing Survey?

According to the survey, 65% of outsourcing work has helped companies align more focus on important business functions, resulting in a benefit of 63% cost-cutting in the overall budget.

How many IT leaders are outsourcing their security efforts, according to Syntax’s survey?

According to Syntax’s survey, 83% of IT leaders are outsourcing their security efforts.

How much can companies save by hiring professional employer organizations (PEOs) for HR functions, according to Napeo’s outsourcing survey?

Companies hiring PEOs for HR functions such as recruiting, hiring, unemployment claims, and compliance can save an average of 27.2%.

What percentage of the Philippines’ GDP is raised from business process outsourcing, according to Matchboard’s survey?

According to Matchboard’s survey, 9% of the Philippines’ GDP is raised from business process outsourcing.

What is the accounting budget of the service outsourcing industry in China, according to Statista?

According to Statista, the accounting budget of the service outsourcing industry in China is worth over $175 billion.

What is the expected BPO market in Japan by 2025, according to Statista’s survey?

According to Statista’s survey, the BPO market in Japan is expected to approach $38 billion by 2025.

How many small businesses outsourced at least one business process in 2019, according to Clutch’s survey?

How many small businesses outsourced at least one business process in 2019, according to Clutch’s survey?

According to Clutch’s survey, over 1/3rd (37%) of small businesses outsourced at least one business process in 2019.

According to Clutch’s survey, over 1/3rd (37%) of small businesses outsourced at least one business process in 2019.

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