- Soumya Nair
100 Interesting Facts About Outsourcing
Updated: Feb 20
Around 300,000 jobs are outsourced by the US annually.
The top reason for outsourcing (70%) is cost reduction.
The total global IT outsourcing budget in 2020 grew from 12.7% in 2019 to 13.6% owing to the pandemic when mostly everything was done online.
Larger companies are 66% more likely to outsource than small businesses.
78% of businesses worldwide feel optimistic about their outsourcing partners.
The global outsourcing market was worth $92.5 billion in 2019.
24% of small businesses outsource to increase the efficiency of their businesses
24.5% of all organizations will increase outsourcing efforts or outsource for the first time in 2021.
The top three areas where outsourcing can help small businesses are — generating profit, growing revenue, and improving cash flow.
Gartner survey finds 74% of Logistics leaders expect their logistics outsourcing budget to increase in the next 2 Years.
Most outsourced jobs: 1. IT (37%) 2. Digital marketing jobs( 34%) 3. Development-related activities (29%) 4. HR jobs(24%).
America is the country that outsources the most.
Nearly 60% of B2B brands get help with their marketing from external sources.
The global PR market is worth $88 billion. By 2026, it’s projected to grow to $129 billion. (Source: Statista) These are the stats of PR firms that manage the design and implementation communication between clients and the organization they represent.
The global PR industry grew by 10.2% in 2021, led by a shift to digital mediums from COVID-19 impacts. (Source: The Business Research Company) Post-corona, there was more dependency on things going digital, and the rising need for PR as an integral part of an organization’s marketing led this industry to grow more.
In 2021 and 2022, 60.05% of online companies outsourced their digital PR efforts (Source: uSERP State of Backlinks Report)
A 2022 report found that PR agencies have grown 30% over the last five years as more companies outsource efforts (Source: USC Annenberg).
90% of in-house teams struggle to create enough quality content to drive results in PR (Source: Holmes Report).
88% of public relations (PR) leaders think storytelling is the highest value skill in successful PR campaigns. Storytelling is a competitive creative field that is best done by PR experts.
In a survey of 800+ digital PR experts, 60.05% have outsourced their SEO to agencies/contractors/freelancers (Source: uSERP State of Backlinks Report)
During a survey conducted in 2020, 81 percent of responding marketing professionals stated they outsourced the writing of content. Graphic design and video design/animation were the second most-outsourced services, both named by 40 percent of respondents.
More than 84% of outsourcing deals come from the US.
29% of US businesses with less than 50 workers outsource.
Focusing on social media management has become mandatory for most organizations, as 80% of the population of the United States at least has a single social media account. It is one of the most important outsourcing trends because browsing social media channels has become the 3rd most popular activity online.
Outsourcing procedures help organizations focus on critical processes, according to 57% of businesses. (Digital Learning, 2019).
Approximately 54% of businesses employ at least one third-party support staff to communicate with consumers (Fortunly, 2021).
18% of small businesses outsource to do so and get expert assistance.
16% of small businesses outsource for more flexibility.
15% of small businesses outsource to give more free time to their employees.
68% of US companies outsource to low-cost countries.
The US is the leading outsourcing country, making 84.2% of outsourcing deals in 2017. The UK and Australia take second place for the leading outsourcing markets list.
51% of B2B marketers list lack of time/bandwidth to create content as one of their top content marketing challenges as a reason to outsource.
50% list producing enough content variety/volume as a reason to outsource (LinkedIn Technology Marketing Community).
30% of B2B marketers say an external agency/consultant is one of their organizations' top resources for content creation. (LinkedIn Technology Marketing Community)
The two most outsourced content marketing activities are Writing (44%) and Design (41%)(LinkedIn Technology Marketing Community).
Marketers outsource 18% of their content, with the remaining content being created in-house, curated, or syndicated. (Curata)
Only 25% of marketers don’t outsource any content creation. (LinkedIn Technology Marketing Community)
About two-thirds of marketers outsource less than one-third of their content creation. (LinkedIn Technology Marketing Community)
Business bloggers outsource 14% of their blog posts. The best practitioners outsource 24%. (Curata)
The most effective resources for video marketing content creation are a Combination of outsourced and in-house resources (70%), and In-house resources only (8%) (Ascend2 2015 Study)
65% of businesses that have outsourced plan to increase outsourcing further.
About 50% of all B2B marketers said they outsource content marketing activities. . (B2B Content Marketing 2022 Report).
65% of B2B marketers said their biggest challenge is finding partners with adequate subject matter expertise. (B2B Content Marketing 2022 Report).
52% of organizations say they outsourced at least one aspect of content marketing (content marketing institute 2020)
85% outsource content creation as a part of content marketing.
31% outsource the content distribution aspect of content marketing.
22% outsource content technology as part of their content marketing.
13% outsource content strategy and content measurement.
84% of marketing professionals say they outsource all or part of their SEO implementation to specialists. (Ascend2)
65% of small business owners have worked with at least one SEO provider before (Source).
More than clients would recommend their current SEO provider to a friend or colleague (Source)
More than 63% of marketers and businesses prefer to outsource their link-building routines of SEO to a third party.
30% of B2B marketers don’t have an in-house marketing team.
Global spending on outsourcing could hit $731 billion in 2023 (Deloitte)
In 2019, 40% of marketing professionals outsourced some content marketing, while in 2020, that number fell to 30%.
65% of companies said that outsourcing helped them focus better on core functions. (Deloitte)
88% of outsourcing businesses pay people to write blogs for them.
45% of global corporations plan to increase outsourcing due to the pandemic. (NTT)
Companies that outsource save anywhere between 15% to 90% of their usual costs by outsourcing. The exact amount depends on the business and operations being outsourced and the country being outsourced. (ROI solutions, Accelerator)
66% of companies in the US outsource at least some aspect of their operations, making the US a global leader in outsourcing. (Statista)
In 2021, Clutch surveyed 500 organizations in the U.S. and discovered that 27% outsource to improve their efficiency and save time.
19% of US organizations outsource to support business growth and scalability
33% of US businesses outsource to access flexible resources
26% of US organizations outsource to work with an offshore expert.
35% of businesses surveyed have been outsourcing certain business functions for 1-2 years.
The most popular aspects of outsourcing were increased flexibility (21%) and greater efficiency (19%).
Strong problem-solving skills are the most important trait small businesses are looking for when choosing an outsourcing partner.
30% of outsourced teams in the United States are in the Midwest.
Referrals (20%) and social media (19%) are the top two ways businesses surveyed find their outsourcing partners.
35% of small businesses have been outsourcing a business process for 1-2 years, with additional data showing 31% of businesses outsourcing for a period of 3-5 Years.
53% of small businesses communicate daily with their outsourced team.
25% of small businesses communicate with their outsourced team through emails.
Businesses with 50 or fewer employees are more likely to outsource (29%) compared to businesses with more than 50 employees(66%).
Around 84.2% of outsourcing deals originated from the United States, followed by the United Kingdom at 5.2%. Spain and Australia were two other key outsourcing markets.
Deloitte conducted a thorough study in 2016, in which 59% said they outsourced to reduce costs, while 17% stated they outsourced to accelerate organizational transformation.
India is the top country for outsourcing based on cost, availability, business environment scores, and people skills.
The outsourcing industry in the Philippines contributes to 10% of the country’s economy.
62% of companies around the globe are looking to renegotiate their outsourcing terms and contracts.
The average manufacturer outsources 70% to 80% of its finished product.
Outsourcing is no longer just about cost saving; it is a strategic tool that may power the twenty-first-century global economy.
Outsourcing can increase productivity and competitiveness 10- to 100-fold.
Companies are beginning to devote some outsourcing savings to helping employees transition.
Leaders can no longer afford to view outsourcing as a mere business tactic; it is now essential to remaining competitive on the world stage.
The average company only spends about 2% of the value of its outsourcing contracts to manage its relationship with the outsourcing provider.
In a survey, 90% of firms cited outsourcing as crucial to their growth strategies.
68% of US companies outsource to low-cost countries.
North & South America constitutes 42% of the outsourcing buyer region. Europe, the Middle East, and Africa constitute 35%. The remaining 23% comes from Oceania & Asia!
Outsourcing relationships are now more standardized and are process, and people are driven rather than price driven. This change is believed to level the playing field for outsourcing service providers in the future.
Cost pressures will pave the way for custom outsourcing contracts that are flexible in their SLAs (Service Level Agreements) and scope of delivery.
Small businesses, startups, and SOHOs will witness higher adoption of outsourcing to reduce operational inefficiencies and decrease their time to market.
Rising raw material, transportation, and oil costs will make companies consider outsourcing to keep their operating costs low.
More high-end critical business functions will be outsourced in the next decade, while outsourcing of low-end services will stabilize.
Latin America and Europe might stiffly compete with India as the favored outsourcing destination.
As businesses move towards cloud outsourcing, support and development will increase.
Manufacturing and Pharmaceutical businesses will move to cheaper destinations, such as India, to take advantage of low labor and operating costs. Additionally, research and development outsourcing in these industries will tap into India's vast outsourcing potential.
Outsourcing is an increasing trend observed post-pandemic as companies have become comfortable with the remote working model, virtual meetings, interviews, and hiring. Companies are outsourcing to preserve money due to economic crises, and outsourcing is still considered an essential tool for client organizations and strategies.
Sales and lead generation and social media management are one of the top tasks to be outsourced for maximum expertise and benefits. (Forbes)
Outsourcing is incredibly common. Over one-third of small businesses use outsourcing to help them become more efficient, increase their skill, and give their employees more free time.
Many companies (small and big) use outsourcing to reduce their costs and have more flexibility. India is the leading country globally regarding IT outsourcing, followed by the Philippines and the US.
Outsourcing stats for the past few years show that in 2015, it sat at $88.9 billion, only to drop to $76.9 billion in 2016. In 2017, it climbed to $88.9 billion, then dropped to $85.6 billion in 2018 before rising to $92.5 billion in 2019.
By outsourcing non-core business functions, companies can focus on their core competencies and achieve tremendous success. Additionally, outsourcing can provide access to a global talent pool, allowing companies to tap into a broader range of skills and experience. Overall, outsourcing can help businesses to reduce costs, improve efficiency and gain a competitive advantage.
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