Is outsourcing a fad or is it the real deal when it comes to boosting business efficiency and growth? Here are 10 statistics that’ll amaze you.
More companies around the world are turning to outsourcing to improve efficiency and reduce costs. At first, they only used outsourcing for cost-cutting measures, but now they use them for far more strategic ends–to gain capabilities that they don’t have in-house, or to strengthen capabilities they do have. In other words, they’ve seen the light; they’ve seen the many advantages of outsourcing to business.
There seem to be no slowing down with companies outsourcing their business tasks. In fact, outsourcing has been steadily picking up steam in the last two decades as companies of all sizes jump on the bandwagon. To help you be more aware of outsourcing facts and figures, we’ve compiled a list. Some are predictable, while some may surprise you.
Here are 10 important outsourcing statistics you should know:
1. In 2016, the global market size of outsourced services was just short of 76.9 billion U.S. dollars.
2. The revenue of the global BPO industry was 24 billion U.S. dollars in 2016.
3. Global leaders in outsourcing include ISS World, a Danish company specializing in facility services, and Accenture, whose focus lies with IT, help desk and HR outsourcing, as well as consulting.
4. 59% of business leaders cited cost cutting as a driver in outsourcing processes. Other top factors included enabling focus on core business and solving capacity issues.
5. The Philippines formerly ranked second in outsourcing worldwide, just after India. However, recent developments in the global outsourcing industry have pushed the Philippines to the top spot in voice BPO, and ranking 2nd in non-voice complex services.
6. The BPO industry in the Philippines currently employs about 1 million Filipinos and is projected to increase employment by providing a total of about 1.3 to 1.5 million new jobs in the next three years.
7. Thailand, South Korea, and Indonesia are the least popular Asian countries as far as outsourcing goes, with just 4% of multinational companies employing workers in these countries.
8. India has become the preferred destination for IT positions. India holds approximately 65% of all outsourced IT jobs.
9. Nearly 50% of employers that outsource say the quality of their service providers and a reactive versus proactive attitude is the most frustrating issues to deal with.
10. Eighty-nine percent of companies say they wouldn’t outsource strategic planning functions. Nearly 80% don’t plan to outsource sales or marketing jobs.
In today’s fast-paced and dynamic business world, it’s imperative to step up your game to have any hope of leapfrogging the competition, and the best way to achieve this is through outsourcing. Just be sure to analyze what business function would be best outsourced and find a reliable and trustworthy outsourcing partner.
The figures are compiled from publicly available information from various credible sources.