35 Outsourcing Statistics For 2024 | MyOutDesk

The professional world has undergone a lot of changes in the past few years, and many businesses are trying every way to effectively adapt. That often means companies are ditching outdated methods while still demanding peak performance. The tried and true practice of outsourcing has become a critical weapon, but navigating the ever-shifting landscape requires sharp intel. 

We’ve compiled the most powerful outsourcing statistics for 2024, dissecting everything from top outsourced tasks to the industry’s massive global value. This intel equips both outsourcing veterans and curious newcomers to make strategic decisions and unleash the full potential of outsourcing for their businesses. Read on to learn everything you need to know about outsourcing in 2024.

Contents

1. Top Statistics
2. Outsourcing Market Statistics
3. Benefits of Outsourcing Statistics
4. Global Outsourcing Statistics
5. U.S. Outsourcing Statistics
6. Outsourcing Statistics by Industry

Top Statistics

• 80% of businesses around the world leverage outsourcing.
• Outsourcing can boost efficiency by up to 25%.
• Outsourcing can lead to a 25% reduction in time-to-market.
• IT services and BPO account for 72% of the global outsourcing market. 
• 25% of real estate agents outsource property management tasks.

General Outsourcing Statistics

The outsourcing industry is booming, with businesses worldwide leveraging it to streamline operations and access specialized skills. Let’s dive into some key statistics that reveal the true scale and impact of outsourcing.

Booming Market

The global outsourcing market is projected to reach a staggering $5.6 trillion by 2027, solidifying its position as a major driver of economic growth (Statista, 2023).

Asian Powerhouse

While Asia remains the dominant force in outsourcing, with India and the Philippines leading the pack, Eastern Europe and Latin America are emerging as strong contenders (Everest Group, 2024).

Widespread Adoption

A staggering 80% of businesses around the world leverage outsourcing to streamline operations, cut costs, and access specialized skills (Clutch, 2023 Global Business Services Survey).

Top Outsourced Tasks

Customer service remains the most outsourced function globally, with 38% of businesses outsourcing it (PWC, 2024 Global Outsourcing Survey). This highlights the importance of delivering excellent customer service experiences.

Cost-Savings Potential

Companies report average cost savings of 15-30% through outsourcing, making it a compelling strategy for businesses of all sizes (IAOP, 2023 Global Outsourcing Report).

Emerging Market Growth

Emerging markets like Vietnam and Colombia are experiencing significant growth in outsourcing, attracting companies with a 20% average cost reduction compared to established markets (Tholons, 2024 Global Services Location Index). This trend signifies a shift in the outsourcing landscape.

Benefits of Outsourcing Statistics

Now that we’ve seen the overall growth of outsourcing, let’s explore the concrete advantages it offers businesses. From cost savings to improving the customer experience, the statistics paint a compelling picture of how outsourcing can boost your bottom line.

Benefits of Outsourcing Outsourcing can boost efficiency by up to 25% Outsourcing can decrease employee turnover rate by 7% Outsourcing customer service roles results in a 10% increase in customer satisfaction Outsourcing empowers businesses to scale operations up or down quickly

Increased Efficiency

Studies show that outsourcing can boost efficiency by up to 25%, allowing businesses to focus on core competencies (Bain & Company, 2023 Outsourcing Survey).

Improved Scalability

Outsourcing empowers businesses to scale operations up or down quickly by adjusting outsourced resources (The Hackett Group, 2024 Global Outsourcing Effectiveness Report).

Employee Retention Benefits

Outsourcing repetitive tasks can free up internal employees to focus on more strategic and engaging work, potentially leading to a 7% decrease in employee turnover (Gartner, 2024 The Impact of Outsourcing on Employee Engagement).

Enhanced Innovation

Outsourcing frees up internal resources, allowing companies to invest in innovation and research & development by an average of 12% (Deloitte, 2024 Global Outsourcing Survey). This fosters a culture of creative problem-solving and helps businesses stay ahead of the curve.

Faster Time to Market

By outsourcing non-critical tasks, businesses can streamline processes and achieve faster product or service launches (Aberdeen Group, 2023 Outsourcing ROI Report). This can lead to a 25% reduction in time-to-market according to some studies.

Improved Customer Satisfaction

90% of customers say an “immediate” response is “important or very important” when it comes to their expectations in customer service. (ROI Solutions)

Global Outsourcing Statistics

Beyond the domestic realm, outsourcing extends its reach across the globe. Here, we’ll explore statistics that unveil the international landscape of outsourcing, including the effect on small businesses and which industries dominate.

Dominant Industries

IT services and Business Process Outsourcing (BPO) account for a whopping 72% of the global outsourcing market value, solidifying their positions as the leading sectors (Statista, 2024 Global Outsourcing Market Report).

Shifting Workforce

Over 1 million new employees join the global outsourcing industry annually, highlighting its significant role in job creation (Exploding Topics).

Small Business Boom

37% of small businesses around the world leverage outsourcing, demonstrating its increasing accessibility for companies of all sizes (TeamStage, Outsourcing Statistics 2024).

Emerging Markets Growth

While India and the Philippines remain leading outsourcing destinations, emerging markets like Vietnam and Colombia are experiencing significant growth, attracting companies with competitive pricing and skilled workforces (Tholons, 2024 Global Services Location Index). 

Cost-Savings Impact

The global outsourcing market is fueled by cost savings potential, with companies reporting an average reduction of 19% in operational expenses (IAOP, 2023 Global Outsourcing Report).

Contract Length Trends

Short-term outsourcing contracts (under 3 years) are on the rise, with businesses prioritizing flexibility and adaptability (Netguru). This trend reflects a shift towards a more project-based approach to outsourcing.

U.S. Outsourcing Statistics

Shifting our focus closer to home, let’s examine statistics specific to U.S. outsourcing. This section will explore how American businesses leverage outsourcing, from the impact on U.S. jobs to security concerns.

U.S. Outsourcing Statistics  The U.S. makes up 38% of the global outsourcing industry 4.5 million new jobs were created in the U.S. between 2010 and 2020 due to the growth of domestic outsourcing 57% of U.S. businesses leverage freelancers for outsourced tasks Nearshore outsourcing has grown by 38% in the U.S. since 2010

U.S. Outsourcing Market Share

The U.S. outsourcing market holds a commanding 38% share of the global outsourcing industry, solidifying its position as the world’s leading consumer of outsourced services (Statista, 2024 Global Outsourcing Market Report).

U.S. Job Impact

While outsourcing has led to some job displacement in the U.S., it’s also created new opportunities. A net of 4.5 million new jobs were created in the U.S. between 2010 and 2020 due to the growth of the domestic outsourcing industry (Bureau of Labor Statistics, 2023).

Freelance Outsourcing Popularity

Freelance platforms are booming in the U.S., with 57% of businesses leveraging freelancers for outsourced tasks, highlighting a growing preference for flexible and project-based outsourcing models (Upwork, 2024 Freelance Economy Report).

U.S. Knowledge Services

The U.S. takes the lead in knowledge services outsourcing, with a 42% share of the global market for sectors like R&D and engineering (Everest Group, 2024 Global Knowledge Services Outsourcing Report).

Nearshore Outsourcing

Nearshore outsourcing, particularly to Latin America, is gaining traction in the U.S. (28% growth since 2020) due to factors like time zone proximity and cultural similarities (Hatchworks).

U.S. Security Concerns

Data security remains a top concern for U.S. companies outsourcing operations. 63% of U.S. businesses cite data security as a major barrier to outsourcing, highlighting the need for robust security protocols (ComputerWeekly).

Outsourcing Statistics By Industry

Digging deeper, let’s get specific! This section dives into how outsourcing plays out in various industries, like real estate and healthcare. We’ll explore statistics on adoption rates, commonly outsourced tasks, and the impact on those industries.

Healthcare

The U.S. healthcare outsourcing market is expected to reach $52.9 billion by 2027, with a significant portion (28%) dedicated to medical billing and coding (IndustryArc). This reflects the growing need for cost-effective solutions in the healthcare industry.

Property Management

25% of real estate agents outsource property management tasks, allowing them to focus on client acquisition and sales (Deloitte). This statistic highlights how outsourcing helps real estate agents become more productive by freeing up their time for higher-value activities.

Financial Services

Accounting and bookkeeping are the most outsourced tasks within the financial services industry, with 42% of firms leveraging outsourcing for these functions (MicroSourcing). This allows financial institutions to focus on core activities like investment management.

Retail

30% of retailers outsource their logistics and fulfillment operations (Statista, 2024 Retail Outsourcing Market Report). This helps retailers streamline their supply chains and improve order fulfillment efficiency.

Software Development

60% of organizations turn to outsourcing for app development (Microsourcing). This statistic highlights the growing demand for skilled developers and the role outsourcing plays in meeting that demand.

Legal Services

Legal research and document review are the most commonly outsourced tasks within the legal industry, with 22% of law firms utilizing outsourcing for these functions (Thomson Reuters, 2024 State of the Legal Market Report). Outsourcing helps law firms streamline operations and reduce costs associated with repetitive tasks.

The Bottom Line

The data speaks for itself: outsourcing has become a strategic imperative across industries and company sizes.  It’s a potent weapon in the modern business arsenal, unlocking efficiency gains, cost savings, and access to a global pool of skilled professionals. 

Outsourcing services like MyOutDesk have leveraged this tried and true practice for decades. This article should have illuminated the latest trends, from the rise of automation to the critical importance of data security.  Empowered with these insights, you can now make informed decisions and leverage outsourcing as a valuable and reliable tool to grow your business.