23 Eye-Opening Outsourcing Statistics for 2023 (2024)

Outsourcing can be a significant source of budget-friendly qualified labor. But for potential employees, it often means having to work hard to sharpen up on core competencies and remain competitive.

But as a modern gentleman, you’re better off being in the know no matter where you stand. That’s why we’ve put together some of the most crucial outsourcing statistics to help you out.

So put on your thinking cap, and let’s get right into it.

Top Ten Key Outsourcing Statistics for 2022

  • 24% of small businesses that outsource at least some of their functions do so to increase efficiency.
  • Statistics on outsourcing suggest that outsourcing industry’s total value is estimated to hit $405.6 billion by 2027.
  • Outsourcing helps companies reduce costs by about 15% on average.
  • Based on the Nike outsourcing facts, Nike outsources over a million jobs globally.
  • Business process outsourcing is expected to produce almost $113 billion of revenue in the US in 2021.
  • 60% of HR outsourcing companies count fewer than 30 full-time employees.
  • The global value of outsourced operations during 2019 was $92.5 billion.
  • Outsourcing statistics show that 80% of Americans say outsourcing has been detrimental to American workers.
  • Call center rates in Southeast Asia and South America run between $8 and $18 an hour per representative.
  • Australian businesses employ around 242,000 people in outsourced positions.

Small Business Outsourcing – Basic Stats and Facts

First thing’s first — we need to see into what is considered outsourcing, how many people do it and what are the pros and cons of this type of arrangement.

1. Small business outsourcing statistics indicate that over a third of small businesses in the US outsource different functions.

(SBA)

Outsourcing is an increasingly popular way for small businesses to gain more overhead cost control. According to recent numbers, the most commonly outsourced operations are accounting, marketing, and sales.

2. 60% of HR outsourcing companies count fewer than 30 full-time employees, as per HR outsourcing statistics.

(ExtensisHR)

Although HR outsourcing companies are still relatively small businesses, they are, in fact, hiring more staff.

Recent HR outsourcing statistics show it’s the function with the most growth in the industry. Roughly 31% of them have over 5,000 employees, 10% of which include companies with over 20,000 employees.

3. 24% of small businesses that outsource at least some of their functions do so to increase efficiency.

(Clutch)

Entrepreneurs and small business owners have a lot to gain from outsourcing. Commonly outsourced small business tasks include IT services, accounting, and digital marketing.

Data on small business outsourcing also shows that HR is becoming one of the most outsourced services. Additionally, 52% of small businesses surveyed in 2019 said they planned to start outsourcing at least part of their operations.

4. Statistics on outsourcing suggest that outsourcing industry’s total value is estimated to hit $405.6 billion by 2027.

(Grand View Research)

The future direction of outsourcing facts and figures is mainly predicted with strong optimism. Grand View Research expects a compounded annual growth rate of 8% in the period between 2020 and 2027.

5. Based on the Nike outsourcing facts, Nike outsources over a million jobs globally.

(HBS Digital Initiative)

In 2017, Nike had 1.02 million employees in 42 countries. Furthermore, 44% of Nike’s production outsourcing went to Vietnam, and the nearest second was China, at 29%.

6. Business process outsourcing is expected to produce almost $113 billion of revenue in the US in 2021.

(Statista)

Despite the circumstances in 2020, outsourcing statistics for 2021 remain optimistic. Experts predict a CAGR of 5.6% from 2021–2025. At the end of this period, the market value is forecasted to hit $140.649 billion.

7. The global value of outsourced operations during 2019 was $92.5 billion.

(Statista)

Although outsourcing has indeed hit a couple of rough patches over the years, it’s headed in a decidedly upward direction. Outsourcing statistics by year indicate 2016 was the lowest point in the ten years leading up to it, with a global value of almost $77 billion.

Most of the revenue came from outsourcing contracts originating in the Americas. Europe was a close second, followed by the Middle East and Africa. Contracts from the Asia-Pacific contributed far less in comparison.

8. Information technology outsource is so common that, in 2019, that market reached $66.52 billion.

(Statista)

That represents a sizable chunk of the $92.5 billion spent on outsourcing overall in the same year. So, we can safely say IT outsourcing statistics show it’s one of the industries most affected by outsourcing business processes. The total value of outsourced contracts in IT peaked in 2000, with over $76 billion invested in IT outsourcing.

US Outsourcing Statistics

Now that we covered the basics, let’s be a bit more specific. America is the world’s economic giant, and outsourcing is quite prevalent, but that doesn’t come without consequences. Here are some surprising, but informative facts on jobs Americans outsource.

9. The number of jobs lost to outsourcing, as statistics indicate, reached 5 million from 1998 to 2018, causing a significant net loss of manufacturing plants in the US.

(Economic Policy Institute)

The number of manufacturing sector jobs lost to outsourcing involves around 91,000 manufacturing plants. This of course, caused a significant shift in all related American economies.

10. Outsourcing statistics show that 80% of Americans say outsourcing has been detrimental to American workers.

(AEI)

Four out of five Americans think outsourcing is bad for the country’s workers. Only 15% of the same poll respondents say outsourcing had helped American workers and the economy overall.

11. According to United States outsourcing statistics, as many as 3.7 million jobs have been outsourced to China alone.

(CNBC)

Whether you think it’s fair or not, there’s no question that the US is losing manufacturing jobs to China at a drastic rate. Over 1.7 million jobs have been exported to China since 2008.

12. Domestic outsourcing has contributed to long-term wage losses of 2–3% over a span of nine years, according to Bureau of Labor statistics on outsourcing.

(BLS)

Domestic outsourcing (that is to say, outsourcing business processes within the same country) drives down wages in the US. Interestingly, the same phenomenon in Germany has a much more pronounced impact. There, experts estimate domestic outsourcing leads to wage losses of up to 10%.

13. Outsourcing statistics indicate 202,543 jobs in the US were listed as “offshored” up until 2020.

(Public Citizen) (Observer)

Many highly developed nations are losing jobs to overseas workers at exorbitant rates. The fashion industry is among the worst offenders. Until a few decades ago, 95% of the clothes sold in the US were made domestically. However, that number dropped to 3% by 2015.

14. 68% of major CPG companies in the US outsource part of their business processes.

(Reliable Plant)

According to a report by PricewaterhouseCoopers, the consumer products industry is one of the most susceptible to outsourcing.

One of the most commonly cited reasons for outsourcing in the sector is its rising energy costs. 65% of the surveyed US companies’ executives see energy costs as a significant hurdle.

Job Outsourcing Statistics from Around the World

How common is outsourcing in other parts of the world? Which countries outsource the most? Here is what the numbers have to say about this.

15. Accenture employs over 500,000 people worldwide, making it the largest international outsourcing business process provider.

(Running Remote)

Accenture provides a wide range of professional services in the IT sector, as well as services for numerous Fortune 100 companies.

Cognizant is a close second, offering AI and cloud solutions, among other services, to several global corporations.

16. Australian businesses employ around 242,000 people in outsourced positions.

(IBISWorld)

In Australia, outsourcing is a way to reduce operating expenses, much like in other countries. However, outsourcing statistics in Australia show it also fills the vital role of expanding an otherwise shorthanded workforce. Over 36,500 businesses outsource at least some of their business functions in Australia.

17. China’s BPO revenue is expected to grow to $17.77 billion in 2021.

(Statista)

China remains one of the most popular outsourcing destinations. With a predicted CAGR of 12.6% in the next five years, China’s BPO market volume will reach $28.5 billion by 2025 if the estimates are correct.

18. Business process outsourcing makes up 9% of the Philippines’ total GDP, according to the recent outsourcing jobs facts.

(Matchboard)

The Philippines relies on inbound outsourcing more than any other country. Its total value reaches roughly $27 billion, with call centers representing the most significant contributor to outsourced labor.

Outsourcing facts show the government is a staunch supporter of the Philippines’ industry, providing everything from financial incentives to education grants for outsourced labor providers.

19. Call center rates in Southeast Asia and South America run between $8 and $18 an hour per representative.

(CloudTask)

Outsourcing a call center, statistics show, dramatically reduces customer service costs. The same call center representatives would cost between $25 and $65 per hour on average in the US.

20. Outsourcing helps companies reduce costs by about 15% on average.

(ISO)

In studies on individual business processes, the savings were even more remarkable. Research by Datamark Incorporated indicated savings of up to 31% in a single-year analysis. The same business saved 33% through outsourcing over a period of three years.

21. Stats on outsourcing show 59% of companies state cost reduction as the primary reason for outsourcing.

(Intetics)

Cost optimization has been and continues to be the main driving force of outsourcing. However, it’s beginning to give way to other benefits in recent years. Focusing on core business activities comes in at a close second, with 57% of companies citing it as the main reason to outsource.

22. 80% of companies that outsource also do it to boost business performance.

(Efficio Consulting)

Research conducted by Duke University and IAOP listed cost reduction as only one of the many benefits employers seek from outsourcing. Outsourcing is also an essential driver of strategic growth and organizational efficiency.

23. 66% of companies with more than 50 employees have engaged in domestic or international outsourcing.

(Time Doctor)

On the other hand, only 29% of companies with fewer than 50 employees are likely to do the same. As companies grow in size, the benefits of outsourcing become more apparent since an in-house team that covers all functions becomes less viable.

FAQ

How common is outsourcing?

Around 30% of companies in the US outsource at least part of their business. Outsourcing is quite common across most industries but most prevalent in the IT sector, where 94% of organizations adopt some form of outsourcing.

In terms of traditional outsourcing, 68% of US consumer product companies outsource some of their operations. Manufacturing companies outsource as much as 70–80% of their finished products.

(Fundera) (Reliable Plant)

What percentage of American jobs are outsourced?

It’s difficult to produce a precise percentage because many types of outsourcing exist. However, data from the Department of Commerce shows that American multinationals have reduced their domestic workforce by 2.9 million between 2000 and 2018. In the same period, those companies employed over 2.4 million people overseas.

(AMU Edge)

Which countries outsource the most?

Countries in the Americas, led by the United States, are the biggest outsourcers. The outsourcing market in those regions reached $62 billion.

The US is also home to the five largest originators of outsourcing contracts in the world. Apple, Nike, and IBM are familiar names on the list of top outsourcers. Let’s also not forget Walmart, since outsourcing statistics place it in the top five. Walmart carries out the lion’s share of its manufacturing in China.

(ITI Manufacturing) (Statista)

How big is the outsourcing industry?

In 2019, the industry reached $92.5 billion globally. However, these numbers can differ drastically depending on the source, but also the year. For instance, a 2018 report by BrandEssence Research valued the BPO market at just under $188 billion that year.

The discrepancies stem from the lack of a general agreement of what constitutes outsourcing, how it’s valued, and what economic factors the researchers consider.

(BrandEssence Research) (Statista)

Why is outsourcing bad?

Experts often talk about outsourcing and unemployment statistics in the same context. And it’s true that outsourcing essentially drains jobs from the originating country and exports them to a host country. That job loss is what most people understand to be the most significant negative aspect of outsourcing. Domestic outsourcing also has some drawbacks.

The most salient of these is that it increases wage inequality and depresses wages in the outsourced tasks.

(DOL) (Investopedia)

Conclusion

As long as capital can move freely while people’s movement is restricted, labor arbitrage will continue to be a popular way to optimize costs and improve performance.

These outsourcing statistics are proof that the days of self-contained in-house organizations are long gone. And they’re not likely to return ever again.

But proponents of outsourcing are convinced the long-term benefits across all dimensions will eventually be apparent. Until then, remember the words of the legendary Peter Drucker:

Do what you do best and outsource the rest.”

Sources:

23 Eye-Opening Outsourcing Statistics for 2023 (2024)

FAQs

What is the forecast for outsourcing business? ›

The Global Sales And Marketing Business Process Outsourcing Market size is expected to reach $49.2 billion by 2028, rising at a market growth of 9.5% CAGR during the forecast period.

Is outsourcing increasing or decreasing? ›

Is outsourcing increasing or decreasing? The global outsourcing market is consistently increasing. Its value in 2021 was estimated at $245.9 billion, and by 2030, that figure is expected to increase to over $587.5 billion, at a CAGR of 9.1%.

Is outsourcing increasing or decreasing in the US? ›

Business processes outsourcing is projected to grow by over 9% per year between now and 2030. The financial services, IT and telecommunications industries are expected to be the biggest drivers behind that growth.

What percentage of companies are outsourcing? ›

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.

What are the outsourcing trends for 2023? ›

Businesses must follow the latest outsourcing trends to adapt fast, manage resources efficiently, and optimize productivity. In 2023, they will focus on remote services, flexible contracts, access to the latest technologies and speeding up time to market.

What is the BPO forecast for 2023? ›

The average Spend per Employee in the Business Process Outsourcing segment is projected to reach US$11.80 in 2023. In global comparison, most revenue will be generated in the United States (US$129.70bn in 2023).

What is the future status of outsourcing? ›

According to Grand View Research, the global business process outsourcing market's value was $245.91 billion in 2021. With a CAGR of 8.5%, its revenue is forecasted to reach $435.89 billion in 2028. Evidently, there's a continuing megatrend of investing in outsourcing.

What is the biggest problem with outsourcing? ›

Language and Cultural Differences

The biggest challenges most businesses experience when outsourcing are cultural and language barriers. When companies outsource, cultural and linguistic hurdles may cause them to lose focus on essential aspects like innovation and attention to detail.

What is the major problem with outsourcing? ›

Outsourcing exposes critical company information, such as product prototypes, business policies, client databases, etc., to third-party agencies. This may result in serious security lapses and data leaks, compromising your competitive advantage.

What is the top 1 outsourcing country? ›

The US has the most percentage of outsourced jobs in the world, with almost 68% of companies delegating their services.

What is the largest outsourcing company in America? ›

IBM. Headquartered in New York City, IBM is a multinational information technology corporation serving more than 170 countries. It provides information technology outsourcing and a variety of sophisticated business process outsourcing (BPO) services to businesses in a wide range of sectors.

What is the downfall of outsourcing? ›

Despite the many benefits of outsourcing, you don't want to go down this path until you compare these to the potential drawbacks:
  • Lack Of Control. Although you can provide direction in regard to what you need to accomplish, you give up some control when you outsource. ...
  • Communication Issues. ...
  • Problems With Quality.
Jul 17, 2017

How many US jobs are lost to outsourcing? ›

300,000 More American Jobs Lost to Trade

Nationwide, 311,427 American jobs have been government-certified as lost to trade since 2017, with 202,543 explicitly listed as offshored, but the total number is higher.

Who benefits the most from outsourcing? ›

businesses

What will be the fastest growing industries in 2023? ›

Growing sectors for 2023
  • Metaverse.
  • Influencer marketing.
  • 3. Entertainment.
  • Personalised attention.
  • Social causes.
  • Supply chain.
  • Neuromarketing.
  • Ecommerce.

What industry is expected to grow in 2023? ›

The future of the global economy lies in Artificial Intelligence (AI). AI is expected to be one of the fastest-growing industries of 2023, already valued at $328.34 billion. AI has begun to revolutionize many industries, such as healthcare, finance and transportation.

What are consumers looking for in 2023? ›

Five Direct-To-Consumer Trends To Look For In 2023
  • Livestream shopping will continue to grow. Gone are the days of written reviews. ...
  • It's time to prioritize social commerce. ...
  • Brands need supply chain resilience. ...
  • Sustainability is the key ingredient. ...
  • Storefronts are gaining popularity.
Jan 18, 2023

What is the US growth rate forecast for 2023? ›

The US economy grew by an annualized 1.1 percent in Q1 2023, slowing from a 2.6 percent expansion in the previous quarter and missing market expectations of a 2 percent growth, a preliminary estimate showed.

What is the future of BPO business? ›

The future of the BPO industry in India is very promising, especially if we take into account the speed at which the country is developing. If you're looking for quality business process outsourcing services that are good value for money, you should definitely consider choosing the Indian market.

What are the recent trends of BPO? ›

What Are the Current Trends in the BPO Industry?
  • Banking & Finance Industries. Almost every industry can take advantage of BPO to increase efficiency. ...
  • Automation & Artificial Intelligence. ...
  • Cost-Cutting Motives. ...
  • Information Technology Processes. ...
  • Cloud-Based Computing. ...
  • Data Security.

What are the 4 stages of outsourcing? ›

As stated in the article from website China Sourcing, included in the four stages of the cycle used in BPO outsourcing are the following: 1) strategic thinking, 2) evaluation and selection, 3) contact development, and 4) outsourcing management or governance.

Is it outsourcing a dying concept? ›

Traditional outsourcing is dead. Long live disruptive outsourcing. Disruptive outsourcing leaps to the front. Our 2018 survey of more than 500 executives from leading organizations indicates that disruptive outsourcing solutions—led by cloud and automation—are fundamentally transforming traditional outsourcing.

What are 3 effects of outsourcing? ›

Outsourcing also has a number of unintended consequences such as lowering barriers to entry and increasing the level of competition a company has. It also has effects on brand loyalty and satisfaction; both for a company's employees and its customers.

What kind of business is easy to outsource? ›

9 Business Activities That You Can Easily Outsource
  • 1) Outsource Accounting & Bookkeeping. ...
  • 2) Outsource Tax Preparation & Filing. ...
  • 3) Outsource Payroll processing. ...
  • 4) Outsource Your Creative work. ...
  • 5) Outsourcing Social Media Management. ...
  • 6) Outsource the Hiring Process. ...
  • 7) Outsource Event Management.

What are 3 reasons for outsourcing? ›

Some of the most common motives, however, are the following ones:
  • Reduce and control costs of operation (this usually the main reason).
  • Improve the company's focus.
  • Liberate inner sources for new purposes.
  • Increase efficiency for some time-consuming functions that the company may lack resources for.
Feb 2, 2023

What are the two most frequent causes of outsourcing problems? ›

The two most frequent causes of outsourcing problems include poor service definition and cost overruns.

What are the future challenges of outsourcing? ›

Experts Name the Top 10 Problems of Outsourcing
  • Problem #1: Lack of Experience with Outsourcing. ...
  • Problem #2: Lack of Expertise with The Outsourced Task. ...
  • Problem #3: Poor Cost Estimate. ...
  • Problem #4: Choosing the Right Vendor. ...
  • Problem #5: Lack of Cultural Context. ...
  • Problem #6: Contractual and Legal Processes.
Oct 19, 2022

What is controversial about outsourcing? ›

Opponents of outsourcing, including American labor groups, advocates for international workers' rights, environmental groups, and some economists, argue that this practice results in the loss of American jobs, damage to the American labor economy, exploitation of low-wage workers in developing economies, and ...

What are some common outsourcing pitfalls? ›

What are The Pitfalls of Outsourcing?
  • Hiring Without a Plan.
  • Outsourcing Core Competencies.
  • Committing Too Quickly.
  • Undefined Expectations.
  • Failure to Communicate.

What US companies use outsourcing? ›

Now, let's look at some companies you probably didn't know outsource staffing and how they do it.
  • #1 - WhatsApp.
  • #2 - Slack.
  • #3 - American Express.
  • #6 - Microsoft.
  • #10 - Cisco Systems.
Jan 25, 2023

What is the outsourcing capital of the world? ›

Good economic growth. The Philippines is known as the outsourcing capital of the world.

Which is the hottest outsourcing destination in the world? ›

India has been identified as the top outsourcing destination of the world, especially in the IT services sector due to its large man-power and skill set in the domain. India is miles ahead of other countries and is followed by China at a safe distance. Was this answer helpful?

What are the three 3 most common outsourcing types practiced by companies? ›

Companies across the globe offer specialized services to help companies in different countries with their outsourcing, which is known as “offshoring,” “nearshoring,” or “reshoring,” depending on the location.

Does Amazon outsource anything? ›

Amazon's supply chain is dependant on the outsourcing of Amazon inventory management. The infrequently ordered products are not stored in regular Amazon warehouses.

How do I get clients for outsourcing? ›

  1. #1: Find Opportunities That Make You Look Attractive.
  2. #2: Join Meetup.com Groups.
  3. #3: End of Fiscal Year Opportunities.
  4. #4: Connect on Social Media Channels.
  5. #5: Run a Contest.
  6. #6: Search Outsourcing Sites.
  7. #7: Job Boards. Now it's Your Turn!

What companies have failed at outsourcing? ›

7 EXAMPLES OF OUTSOURCING FAILURES: REAL LIFE EVENTS
  • #1) IBM & THE TEXAS STATE.
  • #2) QUEENSLAND & IBM.
  • #3) J.P. MORGAN ABANDONS IBM.
  • #4) VIRGIN AUSTRALIA & NAVITAIRE.
  • #5) THE ROYAL BANK OF SCOTLAND & THEIR IT VENDOR.
  • #6) ACCENTURE & HERTZ.
  • #7) LACK OF COMMUNICATION BETWEEN THE US NAVY & ELECTRONIC DATA SYSTEMS (EDS)

Why is outsourcing unethical? ›

Unethical outsourcing practices violate laws, regulations, and standards of ethical behavior. Hiring full-time workers without proper documentation. Failing to provide adequate health and safety measures. Not providing fair wages and benefits.

Does outsourcing hurt the economy? ›

The short-term gain derived by companies that outsource operations offshore is eclipsed by the long-term damage to the U.S. economy. Over time, the loss of jobs and expertise will make innovation in the U.S. difficult while, at the same time, building the brain trust of other countries.

What is better than outsourcing? ›

While outsourcing can be cheaper and more efficient, in-house resources can give more direct control over the day-to-day operations. Understanding both these methods and their pros and cons can help you decide which method works best for your needs.

What jobs are most likely to be outsourced? ›

Here are 20 examples of commonly outsourced jobs for you to consider:
  • Writer. ...
  • Proofreader. ...
  • Medical transcriptionist. ...
  • Legal counsel. ...
  • Lead generation specialist. ...
  • Drafter. ...
  • Event manager. ...
  • Security guard. A security guard is responsible for patrolling businesses to protect staff members, visitors and company property.
Jun 24, 2022

Why is everything being outsourced? ›

Most organizations outsource as a cost-cutting measure and resource management. Some company operations change over time based on demand and supply patterns. In such cases, a company may want to control costs and increase productivity to meet demand.

What is the biggest job shortage in the US? ›

Labor shortages are plaguing the transportation industry nationwide, disrupting one of the economy's most critical support systems. The sector is struggling to hire truck drivers, warehouse personnel, couriers, skilled technicians and public transit workers.

Is outsourcing in the US increasing or decreasing? ›

Overall, businesses spent over $700 billion on outsourcing in 2022. Breaking this down by segment, IT outsourcing spending is projected to reach $519 billion in 2023 — a 22% increase over 2019's numbers. Business process outsourcing spending is forecast at $212 billion in 2023 — a 19% increase over 2019.

What is one negative effect of outsourcing jobs? ›

Impact of Outsourcing on Company Culture:

Some of the ways outsourcing can negatively affect company culture include: Upset employees as they may feel they are being replaced. Confused employees who don't understand why you are outsourcing particular tasks. Add challenges to the daily workflow of the company.

Who profits from outsourcing? ›

From our experience, outsourcing is most profitable for small and medium businesses. As a rule, large companies have whole departments that deal with various tasks, have their own contractors, and do not need outsourcing as such.

Is outsourcing more profitable? ›

Outsourcing can often lead to higher profits margins and give organizations and business leaders more time to focus on their core activities. Outsourcing key business functions allows organizations to focus on their core competencies and leave the rest to the experts.

How do I start an outsourcing business? ›

Here's how you can start and run a business process outsourcing company in six simple steps:
  1. Determine The Type Of BPO You Want. ...
  2. Develop A New Business Plan. ...
  3. Do The Paperwork. ...
  4. Invest In The Necessary Equipment And Technology. ...
  5. Staff Your BPO Firm. ...
  6. Marketing Your Business And Getting Clients.
Nov 14, 2019

Is outsourcing a growing trend? ›

Businesses are expected to spend over $700 billion annually on outsourcing by the end of 2022, according to data. The outsourcing industry is one of the fastest growing in the world. Many trends have contributed to its growth, which can shape its future.

Is outsourcing a profitable business? ›

Outsourcing can often lead to higher profits margins and give organizations and business leaders more time to focus on their core activities. Outsourcing key business functions allows organizations to focus on their core competencies and leave the rest to the experts.

Why outsourcing is the future? ›

Outsourcing is cost-effective

The labor cost in developing countries like India is relatively less compared to developed countries like U.S.A/U.K. This is the main reason why so many companies are flocking to outsourcing crucial aspects of their business, like staffing.

Is outsourcing a make or buy? ›

Outsourcing is when a company decides to purchase a product or service from another company rather than make the product or perform the service itself. Many companies outsource components or even their entire product to another manufacturer.

Where is outsourcing most popular? ›

The US has the most percentage of outsourced jobs in the world, with almost 68% of companies delegating their services.

Who gains from outsourcing? ›

As mentioned above, outsourcing helps businesses control their cost. It's also beneficial for companies or overwhelmed business owners who want to free up more time and focus on the core of their business activities.

What are 3 advantages of outsourcing? ›

Advantages of outsourcing
  • Improved focus on core business activities. ...
  • Increased efficiency. ...
  • Controlled costs. ...
  • Increased reach. ...
  • Greater competitive advantage. ...
  • Offshore outsourcing issues.

Why outsourcing can be bad? ›

Outsourcing Erodes Company Loyalty

As outsourcing has grown from unskilled jobs to include administrative and intellectual positions, even managerial level employees cannot be certain that their jobs are safe and secure. Workplace satisfaction and worker productivity can be negatively impacted.

Why is outsourcing becoming more popular? ›

Labor Shortage

Outsourcing has become increasingly popular in recent years for a variety of reasons. One of the most significant factors is the shortage of labor in many industries. With a global population of 8 billion, you might think that finding workers would be easy.

Is IT outsourcing a dying concept? ›

Traditional outsourcing is dead. Long live disruptive outsourcing. Disruptive outsourcing leaps to the front. Our 2018 survey of more than 500 executives from leading organizations indicates that disruptive outsourcing solutions—led by cloud and automation—are fundamentally transforming traditional outsourcing.

What companies rely on outsourcing? ›

Top US companies that outsource their operations
1. GoogleMultinational technology company
2. FacebookSocial media conglomerate
3. Unitedhealth GroupAmerican managed health care company
4. Wells FargoFinancial services firm
5. NikeFootwear manufacturing company
5 more rows
Mar 31, 2023

How much can you make from outsourcing? ›

Outsourcing Salary
Annual SalaryMonthly Pay
Top Earners$149,000$12,416
75th Percentile$124,500$10,375
Average$92,721$7,726
25th Percentile$55,000$4,583

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