- Business Process Outsourcing Statistics
- IT-Service exports by country
- The top reason for outsourcing among 70% of companies is cost reduction
- By the end of 2021, the overall value of outsourced IT services will surpass $413.72 billion.
- Outsourcing Facts and Figures — Market Value and Cybersecurity
- Business process outsourcing is set to hit a market value of $620 billion by the year 2032
- Statistics on
This statistic shows the hourly wages for software outsourcing jobs in the United States in 2017, by title. Software architects in the U.S. had the highest hourly rates, ranging from 198 to 292 U.S. dollars in that year. For organisations that outsource app development functions, 40% of outsourcing clients experience higher costs and 31% lower costs compared to executing in-house. About 29% said they experience no notable monetary difference between outsourcing app development and in-house development. IT Security had the largest growth rate and is the second most outsourced function with 55% (US & CA).
- In fact, investment in top AI applications may result in $150 billion in annual savings by 2026, AI statistics show.
- The Outsource Accelerator website has over 4,000 articles, 250+ podcast episodes, and a comprehensive directory with 2,300+ BPOs…
- Over one-third of small businesses use outsourcing to help them become more efficient, increase their skill, and give their employees more free time.
- Global outsourcing revenue has been on an unstable trajectory since 2012.
- Outsourcing statistics by year demonstrate that customer service is among the most outsourced processes for large companies and financial organizations.
- In the financial services sector, that rises to 72%, followed by retail/wholesale companies at 60%.
With this, outsourcing sees a new wave coming with the emergence of SMEs and startups who are gaining interest in the industry. With this, BPOs continue to work on strengthening their data security as BPOs and their clients alike make their long-term remote work strategy. The Fortunly.com website does not include reviews of every single company offering loan products, nor does it cover all loan offers or types of financial products and services available. California leads the nation when it comes to jobs lost to outsourcing, mainly because of Silicon Valley and the shrinking of the state’s apparel industry. 83% of financial companies and institutions are implementing or considering implementing robotic process automation.
To use individual functions (e.g., mark statistics as favourites, set statistic alerts) please log in with your personal account. As software outsourcing grows, expect attempts to mix in Agile methods to be close behind. They provide exemplary web and mobile development services and bring innovations like IoT, blockchain, and the SaaS model. it outsourcing trends Sumatosoft is a software outsourcing company that follows the idea of transparent cooperation and excellence of work. Arcanys has consistently been featured as a top software outsourcing firm. In fact, the region is expected to see a lot more competition over the next few years as more countries start offering competitive rates and services.
Business Process Outsourcing Statistics
For now, more than 50% of all companies employ third-party customer support representatives to improve customer experience. Apparently, outsourcing reliable customer support agents retains more clients. Figuring out the latest trends in any industry sector is one of the main perks of analyzing statistics. With such information, you can see what areas of remote work are going to grow in demand.
The Phillippines has a much lower wage range and cost of living compared to other countries around the globe, making it the perfect choice for businesses who wish to outsource jobs. A study about the current state of outsourcing in the modern market has indicated cost is the most common concern for the vast majority of companies that choose to outsource. A study has found that up to 65% of businesses and companies are planning to continue outsourcing either at the same rate or at an increased rate in the upcoming couple of years. Namely, approximately 83% of companies that have an in-house security team are currently considering outsourcing some of their security efforts to managed service providers.
IT-Service exports by country
Meanwhile, cybersecurity remains to be one of the leading concerns of global corporations. A reported rise in cybersecurity threats and data breaches has been reported in 2020 alone, making companies more worried about their data privacy and security. The healthcare industry is one of the most outsourced industries to date, with the increased need for remote and telehealth services.
The top reason for outsourcing among 70% of companies is cost reduction
Choosing the best country to outsource to depends mostly on the industry. For example, a survey shows that India is the best country for offshoring. In addition, India’s business environment is attractive to many companies because of the people’s skills and availability. Finally, technological advancement also enables companies to outsource jobs reliably and efficiently, contributing to outsourcing popularity.
The biggest US outsourcing company is IBM which currently has 383,800 employees, a revenue of $76.5 billion, and $153.4 billion in assets. Deloitte holds second place, with a $47.6 billion revenue and 330,000 employees. 70%–80% of the finished manufactured products are outsourced. 51.6% of businesses with 1,000—10,000 employees are going to do the same. Companies that have between 10,001 and 50,001 workers are most aware of how vital outsourcing is. 61.1% of the big companies are ready for the said investment. Are hiring new employees (50%), increasing profit (46%), employee healthcare (44%), growing revenue (39%), and managing cash flow (34%).
By the end of 2021, the overall value of outsourced IT services will surpass $413.72 billion.
On the bright side, the report by HLB shows that 55% of polled companies are planning to spend more on cybersecurity in 2021. According to the 2020 HLB Cyber Security Report, 65% of British tech businesses were breached or exposed during the lockdown period. Tech companies are now practically forced to work remotely, and without proper cybersecurity expertise, they become perfect targets for cyberattacks. More than 23% or one in four customer service organizations currently use AI-powered chatbots.
In 2023, software outsourcing statistics are expected to be more impressive. That is not all the outsourcing software development statistics we have for you since there are many more exciting trends shaping the market at all times. The year-over-year growth rate for the market between 2021 and 2024 is estimated at around 3 to 5%. As of 2020, the value of the global IT outsourcing market is estimated to be around $92.5 billion, which is impressive but still not the highest the industry has even been. In fact, the fluctuations in the size of the market are quite natural and happen every year. For the past 5 years, the market has been on the rise from $88.9 billion in 2015 to the projected 98 billion in 2024.
Outsourcing Facts and Figures — Market Value and Cybersecurity
Offshoring trends show that Nike outsources the work to five countries. In fact, job loss is the main reason some people strongly object to outsourcing jobs outside the country. Business owners have multiple costs when hiring an employee from the US — recruiting, office space, equipment, training, benefits, paid holidays, and the like. So, they can reduce overall costs by outsourcing to other countries.
Business process outsourcing is set to hit a market value of $620 billion by the year 2032
Given how many people use mobile devices , the mobile application developer job outlook is looking very positive at the moment. There will almost certainly be an increase in the number of mobile software developers in the future. When looking at absolute numbers, software development statistics tell us that California has the most developers . That’s twice as many as in Texas, which only has 324,717 and takes second place on this list. The worldwide public cloud services market is forecast to grow by 17% in 2020. Even healthcare and legal industries outsource jobs, and 68% of consumer product companies use outsourcing.
Cloud computing, which allows companies to access software applications and services from remote servers. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see /about to learn more about our global network of member firms.
Security operations are the most important cybersecurity services that should be outsourced. Since companies need 24/7 monitoring, the most important outsourcing service is having a security team that will protect all the important data . Equally important is creating the security strategy and security architecture. Access to tools and processes and agility matter to 15% of the surveyed, according to Deloitte’s outsourcing statistics graphs.
There is no doubt that digital transformation efforts accelerate IT outsourcing. Accordingly, the total contract value of the global “as-a-service” market has now exceeded several tens of billion U.S. dollars annually. Things weren’t still looking bright for IT service providers in the early days of the coronavirus pandemic. As a result, the global IT outsourcing sector sustained a heavy blow, reducing value by 5%. Machine learning and data science software developers are the highest-paid kind of developers. Software industry statistics indicate that they earn $129,000 a year on average.
On the verge of disruptive outsourcing and robotic process automation , companies still turn to the outsourcing and shared services industry, with another emerging country to consider. The trend toward automation is accelerating, as outsourcing statistics like this one show. Robotic process automation is often the first step a company can make toward digital labor, and most financial companies are already implementing it. As cloud technology continues to disrupt the outsourcing industry, some of the main concerns that companies have are related to information security and compliance with the law. When it comes to business process outsourcing in the US alone, it accounts for approximately 85% of the total $92.5 billion that is spent on BPO services globally on average.