Outsourcing Statistics, Trends for 2023

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

Let’s get started.

Outsourcing General Stats

Table 1: Global Outsourcing Statistics [2023]

Statistics	Values
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 Market	4%
Primary Reason for Outsourcing (US)	Cost savings (59%)
Percentage of US Businesses Outsourcing at Least One Department	66%
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 Partners	78%

Table 2: Jobs Lost to Outsourcing Statistics [2023]

Statistics	Values
Annual US Jobs Outsourced	300,000
Large Consumer Products Companies Outsourcing Workforce (US)	68%
Total Outsourced Workers Hired by US Companies in the 2000s	2 million
American Workforce Cut by US Companies in the 2000s	2.9 million
Outsourced Workers Overseas Hired by US Companies in the 2000s	2.4 million
Large Multinational Companies Outsourcing Overseas (US)	75%
Percentage of Small Businesses Outsourcing to Increase Efficiency (US)	24%
China: Top Country US Businesses Outsource to	China
Top 5 Countries US Businesses Outsource to	China, Philippines, Taiwan, Ukraine, Vietnam

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

Year	Information Technology Outsourcing	Business Process Outsourcing	Total 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.

4. Up to 85% of logistics leaders are expected to see an increase in the outsourcing budget.
5.  India is continuing to grow as the top country to outsource business from.

Global Outsourcing Market Statistics 2023

6. The primary enabler in outsourcing for around 90% of companies is cloud.
7. 62% of companies around the globe are looking to renegotiate their outsourcing terms and contracts.

8. Only 25% of UK-based companies have never outsourced.
9. 32% of companies believe they will outsource less after the COVID19 pandemic ends.
10. 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.

11. The number of workers US overseas affiliates hired in 2018 was 14.4 million
12. Almost 60% of US marketers didn’t see any COVID-related changes in the outsourcing marketing activities.

OUTSOURCING STATISTICS AND THE ECONOMY

Table 1: Top Origins of Outsourcing Deals by Value

Rank	Country	Percentage of Total Outsourcing Deals
1	United States	84.2%
2	United Kingdom	5.2%
3	Other countries	10.6%

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

Table 2: Regional Distribution of Outsourcing Deals

Region	Percentage of Total Outsourcing Deals
North America	37.4%
South America	4.6%
Europe, Middle East, and Africa	35%
Asia and Oceania	23%

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

Category	Percentage of small businesses
Small businesses outsourcing at least one business process	37%
Small businesses planning to outsource at least one business process in the future	52%
Most popular outsourced processes	Accounting (37%) and IT services (37%)
Other common outsourced processes	Digital marketing (34%), development (28%), human resources (24%), and customer support (24%)
Small businesses outsourcing to increase efficiency	24%
Small businesses outsourcing for increased expertise	18%
Small businesses outsourcing for flexibility	16%
Small businesses outsourcing to allow employees to perform other tasks	15%

Table 2: Challenges Faced by Small Businesses in Outsourcing

Challenge	Percentage of small businesses
High costs	23%
Difficulty in communicating with outsourced teams	21%
Outsourced teams failing to meet deadlines	14%
Outsourced teams not following instructions	12%

Table 3: Payroll Outsourcing by Organization Size

Organization size	Percentage of organizations that fully outsource payroll services
2,500 or fewer employees	15%
10,000 or more employees	8%

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

13. Approximately 24% of small companies outsource to increase levels of efficiency.
14. A large number of small businesses use outsourcing as a way of accessing specialist skills.
15. Larger businesses are 66% more likely to outsource compared to small businesses.

16. Up to 37% of small businesses outsource for at least one of their business processes.

OUTSOURCING STATISTICS TRENDS AND PROJECTIONS

Table 1: Outsourcing Market Value and Growth

Year	Market Value (in billion USD)	Growth (in billion USD)
2016	76.9	–
2019	92.5	15.6
2025	132.66	40.16
CAGR	4%	–

Table 2: Impact of Outsourcing on American Manufacturing Industry

Timeframe	Impact
1979-2009	8 million American manufacturing jobs were outsourced
1998-2008	12.5% decline in manufacturing plants
June 1979 to Dec 2009	19.5 million to 11.5 million jobs in the industry

Table 3: Outsourcing Trends

Trend	Percentage (%)
American companies planning to relocate outsourced jobs back to the U.S.	4%
Companies planning to outsource more work	70%
Companies planning to significantly increase outsourced jobs	35%
Predicted global outsourcing market growth to happen in the United States	38%
Increase in the number of U.S.-based freelancers	22%

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

Business Process Outsourcing Statistics 2023

17. Business process outsourcing is set to hit a market value of $620 billion by the year 2032.

18. Up to 54% of companies state that they haven’t seen any change in service quality when choosing to outsource their business process.

19. India, China, and Malaysia are the top countries for business process outsourcing.

OUTSOURCING STATISTICS BY MOST COMMON REASONS

Table 1: Vital Outsourcing Statistics [2023]

Metrics	Values
Percentage of businesses that outsource	59%
Percentage of small businesses that outsource to get help from an expert	26%
Percentage of businesses with 11 to 50 employees that outsource to get help from an expert	17%
Percentage of businesses with 51 to 250 employees that outsource to get help from an expert	14%
Percentage of businesses with 251 to 500 employees that outsource to get help from an expert	16%

Table 2: Outsourcing Statistics by Most Common Reasons

Reasons for Outsourcing	Percentage of Companies
To cut costs	59%
To get help from an expert	26%

Table 3: Expert Outsourcing by Company Size

Company Size	Percentage of Businesses
Small businesses (10 or fewer employees)	26%
Businesses with 11 to 50 employees	17%
Businesses with 51 to 250 employees	14%
Businesses with 251 to 500 employees	16%

Table 4: Labor Cost Savings through Outsourcing

Type of Outsourcing	Percentage of Labor Cost Savings
Overseas outsourcing	70% to 90%

IT Outsourcing Statistics 2023

IT Outsourcing Statistics	data
Estimated IT outsourcing expenditure by 2023	$1.3 trillion
Predicted CAGR of IT outsourcing market by 2027	7.7%
Forbes Global 2000 companies that used IT outsourcing	92%
Expected value of cloud computing market by 2027	$1,241 billion
CAGR of cloud computing sector	17.9%
Small businesses that outsourced IT services in 2019	37%
Predicted rise of start-up software development outsourcing by 2023	70%

20. The IT outsourcing market will exceed $1.3 trillion by the end of 2023.

21. 83% of IT leaders would like to outsource security.

22. More than 65% of organizations are planning on increasing or maintaining their IT outsourcing efforts in the upcoming 2 years.
23. IT and business service outsourcing hit record levels in 2021.
24. Outsourcing accounted for 13.6% of the total IT budget in 2020/2021.

25. 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

Outsourcing Statistics by Company Size
Percentage of small businesses outsourcing	80%
Percentage of large businesses outsourcing	More than 50%
Percentage of businesses with 50 or fewer employees outsourcing	29%
Percentage of businesses with more than 50 employees outsourcing	66%
Large businesses are 128% more likely to outsource than small businesses.

Most Commonly Outsourced Departments Among Small Businesses
Accounting and information technology	37%
Digital marketing	34%
Development	28%
Human resources and customer support	24%

Most Commonly Outsourced Tasks and Departments
Financial service executives outsourcing	71%
Large consumer products companies outsourcing	68%

Outsourcing Cost Savings Statistics 2023

26. 27% of businesses reported a 10-20% cost saving when implementing RPA (robotic process automation).

27. Outsourcing in the Philippines can reduce costs by 70-90%.
28. 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

Indicator	Value
Job loss due to outsourcing	1 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 industries	78.5%
Imports of financial and insurance services used for offshoring	55%

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

Statistic	Value
Number of Americans doing freelance work	Over 50 million
Increase in independent workers from 2020-2021	34%
Number of Americans working independently	51.1 million
Number of full-time independent contractors	17 million
Percentage of American workforce made up of freelancers	36%
Total contribution of freelancers to US economy	$1.3 trillion
Percentage of non-freelancers considering freelancing in the future	56%
Percentage of freelancers providing skilled services	53%
Percentage of postgraduate degree holders doing freelance work	51%

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

Year	Google Searches for “Freelancing”
2017	100
2018	118
2019	136
2020	205
2021	416

OUTSOURCING STATISTICS BY JOBS LOST TO OUTSOUCING

Table 1: Outsourcing Statistics by Job Vulnerability

Jobs Vulnerable to Outsourcing	Number
Total	30M
Percentage of jobs in the US	20.5%

Table 2: Outsourcing Market by Type

Type of Outsourcing	Revenue in 2019 (USD billions)
Technology Outsourcing	66.5
Business Process	26

Table 3: Outsourcing Statistics by Department

Department	Percentage of Organizations in North America Engaging in IT Outsourcing
Information Technology	92%

Table 4: Top 10 Vulnerable Occupations to Outsourcing

Rank	Occupation	Annual Wage (USD)
1	Computer Programmers	82,240
2	Data Entry Keyers	33,890
3	Electrical and Electronics Drafters	64,230
4	Mechanical Drafters	57,960
5	Computer and Information Systems Managers	100,640
6	Actuaries	108,350
7	Mathematicians	111,110
8	Statisticians	92,270
9	Mathematical Science Occupations	101,360
10	Film and Video Editors	58,210

• 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/Industry	Outsourcing Statistics UK	Motivation
IT support	34% of UK-based businesses outsourced in 2019	Lack of necessary IT staff (48%), better results or cheaper (30%), reduces staff costs (29%), increases efficiency (28%)
Payroll	28% of company executives outsourced in 2019	Cost (41%), deficiency in skilled staff (34%)
Accounting	33% of respondents outsourced bookkeeping services in 2020	To stay competitive (64%), positive effect (73%), intending to outsource bookkeeping (33%), payroll (19%), expenses (15%), and compliance function (18%)
Call Centre	Outsourcing to South Africa saves almost £12,000 a year	Predominantly for call centre outsourcing services (73%), costs of running a call centre in UK >£17,000 vs South Africa ~£5,500
Marketing	10% of UK businesses outsourced in 2020	Consider 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

Year	Percentage of Public Sector Contracts Awarded to Sole Bidder
2018	23%

Table 2: Reasons for Outsourcing in the UK

Motivator	Percentage of Respondents
Cost Reduction	71%
Business Transformation	50%
Quality of Service Improvement	50%
Recruitment Time Saving	40%
Greater Project Management Efficiency	28%
Improvement of Quality (for UK Workforce)	88%
Building and Controlling Intellectual Property	63%

Table 3: IT Job Positions in the UK in 2020

Metric	Number
Estimated IT job positions	850,000
Estimated IT job positions (UK)	180,000

Table 4: Outsourcing Expectations of UK Businesses in 2020

Expectation	Percentage of Respondents
Increase Outsourcing	30%
Decrease Outsourcing	15%
Undisclosed Type/Number of Jobs	19%

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

Statistic	Value
BPO market size in 2022	$262 billion
Predicted BPO market size in 2030	Almost $526 billion
CAGR of BPO market growth	9.4%

Table 2: RPA Operational Cost Savings

Statistic	Value
Percentage of companies using RPA that reported 10-20% savings in operational costs	27%
Percentage of companies using RPA that achieved 60% savings in operational costs	2%

Table 3: Outsourcing in Small Businesses

Business Area	Percentage of respondents that outsourced
IT services	27%
Digital marketing	24%
Legal duties	23%
Finance duties	23%
Development	21%
Customer support	19%

Table 4: Call Center Market Statistics

Statistic	Value
Call center market size in 2022	Over $461 billion
Predicted call center market size in 2030	$742 billion
CAGR of call center market growth	6.1%

Table 5: BPO Financial Services Market Statistics

Statistic	Value
Value of BPO financial services segment	Over $130 billion
Predicted annual rise of BPO financial services segment in the US	7.5%

Table 6: Outsourcing in the Banking Industry

Business Area	Percentage of help desk positions outsourced
Help desk	More than 40%

Table 7: Top Services Offered by HRO Entities

Service	Percentage of HRO entities offering
HR consulting	45%
Benefits administration	36%
Time tracking	24%
Insurance services	19%
Performance management	10%

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 Type	2021 Revenue Projection (£ billion)	Annual Growth Rate (%)	2025 Market Volume Estimate (£ billion)
Application Outsourcing	6	5.26	7.5

Table 2: Managed Services Contracts in the UK

Service Type	Value in 2020 (£ million)	Growth Rate (%)
Total Managed Services Contracts	794
Traditional Managed-Service Contracts	2,000	10
IT Infrastructure and Operations (ITO)	1,600	36

Table 3: UK Outsourcing Workforce

Year	% of Outsourced Workers
2019	5%

Table 4: Outsourcing Contracts in the UK

Quarter	Value of Contracts (£ million)	Growth Rate (%)	Sector
Q1 2019	700	–	Various
Q2 2019	938	34	Various

Table 5: Business Process Outsourcing Statistics UK

Service Type	2021 Revenue Projection (£ billion)	Annual Growth Rate (%)	2025 Market Volume Estimate (£ billion)
Business Process Outsourcing	17.1	6.21	21.8

Table 6: Top Outsourcing Sectors in the UK

Service Type	Value (£ million)
Application and Network Management	284
Work outsourced by Manufacturing Companies	118

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)

Rank	Country	Percentage of World Output
1	China	28.7%
2	United States	17.2%
3	Japan	7.8%
4	Germany	6.5%
5	India	3.2%

(Source: Safeguard Global)

Table 2: Nike’s Outsourced Production

Location	Number of Workers
Philippines	200,000
China	175,000
Vietnam	125,000
Taiwan	50,000
Indonesia	50,000
Total	500,000

(Source: Outsource Accelerator)

Table 3: Manufacturing Job Losses due to COVID-19

Country	Number of Jobs Lost
United States	740,000

(Source: Public Citizen)

Table 4: Apple’s Supplier Manufacturing Facilities Location

Location	Percentage of Total Production
Asia (total)	85%
China	42%
United States	20%
Europe	16%
Japan	5%
Other	17%

(Source: Verdict)

Table 5: Companies Outsourcing Manufacturing in 2022

Percentage of Companies	Reason 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.