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The moment it first appeared in 1989, business outsourcing quickly took over the business industry in what was almost a one-move sweep. Business outsourcing has been a vital element of business management on a worldwide level for almost 30 years.
However, you feel about it – there’s no denying that business outsourcing is now an essential part of some of the world’s biggest industries. Since its importance is constantly increasing, we took some time to gather the biggest, most important business outsourcing statistics in 2020.
If you’re not sure about what you feel when it comes to business outsourcing, these numbers don’t lie, and they should help you make an informed decision.
Key Business Outsourcing Statistics – Our Choice
More than 654,000 US citizens have been unemployed since 2001 due to outsourcing to China. Currently, 57 million freelance workers are looking for work in the US. Over 93% of small businesses have either already adopted or are considering adopting cloud technology to support their business outsourcing efforts.
By 2027, one of the fastest expanding markets globally, Business Processing Outsourcing, is estimated to reach $405.6 billion. When it comes to outsourcing IT functions, the main reason for outsourcing is shifting focus on the core mission.
IT and accounting are the most outsourced businesses in the small and medium-sized business industry. More than 50% of small businesses use outsourcing support teams to target audiences and establish a connection with customers. By 2024, the worldwide IT outsourcing market is estimated to achieve a growth of $98 billion.
Now, let’s look at some of the hottest business outsourcing statistics currently trending in the world of small business.
The Last Year’s Global Outsourcing Market Worth Was $92.5 Billion
Global small business outsourcing revenue has been quite unstable for the last 7-8 years. In 2014, revenue peaked only to drop again in 2016.
However, the latest stats showed that outsourcing is on the rise again, contributing to a bigger picture that shows the market is currently stable and continuing to stabilize. It’s also estimated that the trend will continue to grow, reaching a new peak by 2024.
Over 300,000 Outsourced Jobs All Over the World Each Year
Not everyone is fond of outsourcing. Many Americans blame business outsourcing for ushering the crisis instead of resolving it.
However, even though the world has just lived through one of the biggest recessions in history due to the COVID-19 pandemic, many experts now believe that business outsourcing might help solve the economic crisis and deal with the consequences of the pandemic.
More than 93% of Small Businesses Work Around the Clock to Improve Outsourcing
Cloud technology has become increasingly popular with small companies. It allows these organizations to become more responsive, capable, and customer centric. More importantly, the cloud helps businesses expand their products and services to new markets.
If we take a look at outsourcing figures at the moment, almost 30% of these companies are considering adopting cloud technology, even if it means breaking a budget or withstanding an increase in costs of making the transition.
This shift toward becoming more competitive, innovative, and relevant has become almost a habit among small businesses. Outsourcing is one of the best ways of achieving these goals.
Data Security as Top Priority
Over 68% of outsourcing small businesses state data security as their primary concern, which goes especially for companies that are considering moving or have already moved to the cloud.
Since the cloud makes huge waves in the outsourcing industry, companies are now facing two of the biggest challenges – how to remain compliant with laws and increase data security.
According to the most recent IT outsourcing stats, most small businesses are worried about cloud-based technology not being safe enough or reliable, with loss of intellectual property being their top concern.
There’s a 44% Increase in Using Outsourcing Suppliers
If we take a look at the latest data coming from the offshoring statistics, it seems that the IT industry is making a transition toward outsourced suppliers. There is a very strong connection between software development and outsourced offshore technology functions.
Over 51% of IT executives and chief intelligence officers say they use outsourcing services for software and application maintenance, while 40% made their data centers available to outsourcing companies.
IT Outsourcing Is the Best Way to Save Money
Many small business companies realized how to use outsourcing IT to save money while accumulating resources to support their core business. Almost 50% of organizations are mainly motivated by saving money to start outsourcing their IT operations.
While saving and freeing up resources is still secondary, both outsourcing and saving resources remain top priorities in the small business sector.
In fact, the stats coming from about 45% of small businesses indicate that these organizations outsource IT functions to save money. 46% of small businesses say that outsourcing brings many great benefits such as access to skill sets and business methods that otherwise aren’t available in-house.
83% of Financial Organizations Use Robotic Process Automation
Automation is an ever-increasing trend that keeps growing constantly and continually. According to some outsourcing statistics, robotic process automation is a common first step, taken by many small businesses to go through the digital transformation of the modern business age.
Implementing these automation solutions allows industries to ensure continued growth. The best examples are invoice processing sectors and the HR industry. Both industries heavily rely on bots to go about their daily operations.
Business outsourcing is a force that is yet to be reckoned with. While America continues to outsource businesses, the trend is constantly flexing.
Geopolitical factors, quotas, and tariffs are sure to bring outsourcing closer to worldwide industries in the time to come.
With more and more small businesses on board with the latest outsourcing technologies, it’s expected to see a great change that will spread among all industries.