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Statistics
Must-Know Outsourcing Statistics for 2023
Written By
G. Dautovic
Updated
October 16,2023
Outsourcing has been a hot trend since 1989. Over the past three decades, it has become an integral part of business management on a global scale.

That doesn’t mean everyone approves. Opinions vary from highly negative to wildly positive.

However you feel about outsourcing, one thing is certain: The gig economy still has to recover from the economic downturn in the previous years, as do some of the biggest industries in the world.

This is why we think it’s important to dig deeper into the newest data and pull out all the most important outsourcing statistics.

My Latest Videos
Key Statistics on Outsourcing for 2023 - Editor’s Choice
Almost 54% of all companies use third-party support teams to connect with customers.
The global outsourcing and shared services market is expected to reach $971.2 billion in 2023.
There are 73.3 million freelance workers in the US in 2023.
78% of businesses all over the world feel positive about their outsourcing partners.
About 300,000 jobs get outsourced out of the US each year.
The IT outsourcing market revenue is projected to reach $460.10 billion by the end of 2023
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The global market spending on outsourcing and shared services will reach $971.2 billion by the end of 2023.
The value of the outsourcing sector has been growing rapidly, and is projected to continue expanding at a 6.5% CAGR rate in the 2023-2027 period. The biggest share of the outsourcing market is still in business process outsourcing, which will reach a global market value of $350 billion by the end of the year.

About 300,000 jobs get outsourced out of the US each year.
Statistics like this one make it easy to understand why so many people view outsourcing negatively. Negative sentiments are especially strong when there is a big economic crisis, like the Great Recession of 2008, when 86% of Americans blamed outsourcing for exacerbating the crisis.

More than 93% of organizations are considering or have already adopted cloud services to improve outsourcing.
The move toward cloud technology will help companies of all kinds become more capable and responsive while allowing them to rapidly expand their offerings in existing and new markets.

By the end of 2022, 85% of organizations have already adopted cloud services, and what's more, the data shows that a third of all organizations are willing to accept an increase in operating costs if they get access to the cloud in return.

This means that for a large number of businesses, the main motivation for this move is not to lower costs by cutting jobs, but to be more competitive and increase innovation.

Some 75% companies use external providers to leverage data and analytics.
In recent years, businesses have increasingly been turning to third-party sources for detailed analytics and insight generation, with more than three quarters of all companies surveyed leveraging this sensitive data through outside partners.

Out of all these organizations, 94% are leveraging service providers to innovate the data by developing AI and machine learning technology, an indicator of the rapidly growing adoption of this cutting-edge tech.

Data security is a top concern for 68% of outsourcing companies that are considering moving to cloud technology.
As cloud technology continues to disrupt the outsourcing industry, some of the main concerns that companies have are related to information security and compliance with the law.

However, IT outsourcing trends point to an additional concern that has everything to do with performance: 45% of outsourcing businesses worry that a cloud-based service may not be stable or reliable enough. Some 35% of respondents identify a fear of losing intellectual property as their biggest concern.

More than 44% of chief intelligence officers say they are now more likely to use outsourcing suppliers than they were just five years ago.
The latest offshoring data shows that the IT sector is moving toward outsourced suppliers most quickly. In fact, about 64% of outsourced offshore technology functions have to do with software application development.

The same research has shown that 51% of technology executives outsource application and software maintenance, and 40% outsource their data centers.

Saving money is a major motivation for outsourcing IT.
Freeing up resources to focus on core business is the most widely cited reason for outsourcing IT functions, at 49%. Saving money is secondary, but still a top priority. About 45% of companies outsourcing IT functions say that their information technology outsource projects are meant to save money.

About 46% say outsourcing lets them access skillsets that aren’t available in-house.

You may be also interested in:
LLC Business Formation Services for 2023
Credit Cards for Newly Established Businesses
Fortunly's Guide to Startup Business Loans
Business Checking Accounts Reviewed
Top Privacy Policy Generators in 2023
71% of financial service executives outsource or offshore some of their services.
Financial companies are among those that outsource the most. About 70% of retail and transportation firms do the same, while pharmaceutical companies currently hold the top spot, with roughly 82% of these organizations outsourcing some of their services.

80% of financial companies and institutions are implementing or considering implementing robotic process automation.
The trend toward automation is accelerating, as outsourcing statistics like this one show. Robotic process automation is often the first step a company can make toward digital labor, and most financial companies are already implementing it.

What’s more, 81% of financial companies are satisfied with their robots, meaning that continued growth is all but guaranteed. This trend is currently most visible in HR and invoice processing sectors, where bots are increasingly replacing people.

The global IT outsourcing market revenue is projected to reach $460.10 billion in 2023.
IT outsourcing is projected to continue growing at a 11.07% CAGR until 2028, and is projected to reach $777.7 billion by that time. Currently, the most revenue in the IT outsourcing market is generated in the US, with $167.90 billion projected by the end of 2023.

More than 654,093 Californians have lost their jobs to China since 2001.
Californian economy has suffered the most in the US when it comes to jobs lost to outsourcing, mainly because of Silicon Valley and the shrinking of the state’s apparel industry.

A quick look at jobs lost by industry illustrates why California, as the home of most US tech giants, suffered so much. Of 3.8 million jobs that the United States has lost to China since 2001 when the country joined the WTO, 2.89 million were in manufacturing. Out of all Californian jobs lost to China, 74% were in the manufacturing sector.

Worldwide, the financial and accounting business processing outsourcing market is expected to reach $60.31 billion in 2023.
The same data shows that this market is expected to grow at a 9.1% CAGR from 2023 to 2030, with order-to-cash segment representing over 50% of the market share. The biggest factor driving this market growth is the increased need for cost-effective services with advanced technologies.

The global outsourced customer experience market was estimated to be worth $74.16 billion in 2022.
Outsourcing statistics by year demonstrate that customer service is among the most outsourced processes for large companies and financial organizations. Since most businesses believe that improving customer experience is a top priority, it’s not surprising that growth is projected to continue throughout 2023.

The value of the market is projected to increase to $80.7 billion by 2028, growing at a CAGR of 3.42%.

The most commonly outsourced jobs in small businesses are accounting and IT.
Small businesses usually turn to outsourcing when it comes to accounting and IT because those tasks require proficiency and skills that they might not possess internally. That’s why the data shows that 37% of all accounting and IT tasks get outsourced. Digital marketing tasks follow at 34%, with development and human resources at 28%.

However, a report from Gartner in 2022 showed that some 60% of finance and accounting outsource contracts are not expected to be renewed by 2025.

27% of small businesses outsourced to improve efficiency and save time in 2022.
Small business owners care about efficiency above all. Compared to larger companies, these businesses usually cannot afford or simply do not have access to the necessary resources to build a team from scratch. The same survey found that 35% of small businesses outsource to access flexible resources, whilw 26% of small businesses with 10 or fewer employees outsource with the goal of working with an expert.

29% of businesses with fewer than 50 employees outsource, compared to 66% with 50 or more employees.
Smaller businesses are less inclined to spend money on outsourcing when compared to global outsourcing companies, as they usually feel like it is better to keep the money inside their firm and do things themselves. When they do outsource, smaller companies tend to turn to freelance workers.

83% of small businesses plan to maintain on increase their spending on outsourced services in 2023.
Most small businesses state that the main reason they wish to increase spending on outsourcing has to do with the ability to manage the scaling up or down quickly, as well as supplementing their current teams or filling in the skill gaps, along with the fact that hiring outside usually costs less than hiring in-house.

76% of executives in the business and technology sectors say that their companies outsourced IT services.
Out of this number, the biggest share of outsourced IT work comes in the form of cybersecurity (81%), followed by app and software development (79%) and IT infrastructure services (77%).

deloitte business outsourcing info

Small businesses spent an average of $198,550 on outsourced service providers in 2022.
With the growing demand and shift to outsourced specialist and specialized agencies, this number is expected to grow even more in the coming years.

57% of companies in 2022 used traditional outsourcing because of the overall need to cut operational costs.
The same research found that the second most-quoted reason were shifts in business strategies and operating models, with 51% of responders claiming this is why they increasingly rely on outsourced work, while 49% claimed that the biggest reason was to gain access to new capabilities.

In Conclusion
The US administration is focused on bringing manufacturing and other outsourced industries back to American soil, but overall, global trade policies remain in constant flux. Tariffs, quotas, and geopolitical factors are sure to keep outsourcing on the radar for many years to come.

The outsourcing statistics we’ve gathered also show an obvious split between small businesses and large corporations as emerging technologies like artifical intelligence and robotic automation change the market even further.

While outsourcing is likely to continue growing, the functions that are outsourced and the companies that rely on outsourcing may change. Operations are generally moving in-house, while key sectors like software development and maintenance remain outsourced.

Sources
Statista
Deloitte/Wall Street Journal
Computer Economics
Los Angeles Times
Gartner
Entrepreneur
Clutch
Forbes
Upwork
Deloitte
Daxx
European Corporate Governance Institute
Raconteur
FAQ
What is the success rate of outsourcing?
+

Which country outsources the most?
+

Which industry outsource the most?
+

ABOUT AUTHOR
G. Dautovic
G. Dautovic
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.

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Statistics
Must-Know Outsourcing Statistics for 2023
Written By
G. Dautovic
Updated
October 16,2023
Outsourcing has been a hot trend since 1989. Over the past three decades, it has become an integral part of business management on a global scale.

That doesn’t mean everyone approves. Opinions vary from highly negative to wildly positive.

However you feel about outsourcing, one thing is certain: The gig economy still has to recover from the economic downturn in the previous years, as do some of the biggest industries in the world.

This is why we think it’s important to dig deeper into the newest data and pull out all the most important outsourcing statistics.

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Key Statistics on Outsourcing for 2023 - Editor’s Choice
Almost 54% of all companies use third-party support teams to connect with customers.
The global outsourcing and shared services market is expected to reach $971.2 billion in 2023.
There are 73.3 million freelance workers in the US in 2023.
78% of businesses all over the world feel positive about their outsourcing partners.
About 300,000 jobs get outsourced out of the US each year.
The IT outsourcing market revenue is projected to reach $460.10 billion by the end of 2023
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The global market spending on outsourcing and shared services will reach $971.2 billion by the end of 2023.
The value of the outsourcing sector has been growing rapidly, and is projected to continue expanding at a 6.5% CAGR rate in the 2023-2027 period. The biggest share of the outsourcing market is still in business process outsourcing, which will reach a global market value of $350 billion by the end of the year.

About 300,000 jobs get outsourced out of the US each year.
Statistics like this one make it easy to understand why so many people view outsourcing negatively. Negative sentiments are especially strong when there is a big economic crisis, like the Great Recession of 2008, when 86% of Americans blamed outsourcing for exacerbating the crisis.

More than 93% of organizations are considering or have already adopted cloud services to improve outsourcing.
The move toward cloud technology will help companies of all kinds become more capable and responsive while allowing them to rapidly expand their offerings in existing and new markets.

By the end of 2022, 85% of organizations have already adopted cloud services, and what's more, the data shows that a third of all organizations are willing to accept an increase in operating costs if they get access to the cloud in return.

This means that for a large number of businesses, the main motivation for this move is not to lower costs by cutting jobs, but to be more competitive and increase innovation.

Some 75% companies use external providers to leverage data and analytics.
In recent years, businesses have increasingly been turning to third-party sources for detailed analytics and insight generation, with more than three quarters of all companies surveyed leveraging this sensitive data through outside partners.

Out of all these organizations, 94% are leveraging service providers to innovate the data by developing AI and machine learning technology, an indicator of the rapidly growing adoption of this cutting-edge tech.

Data security is a top concern for 68% of outsourcing companies that are considering moving to cloud technology.
As cloud technology continues to disrupt the outsourcing industry, some of the main concerns that companies have are related to information security and compliance with the law.

However, IT outsourcing trends point to an additional concern that has everything to do with performance: 45% of outsourcing businesses worry that a cloud-based service may not be stable or reliable enough. Some 35% of respondents identify a fear of losing intellectual property as their biggest concern.

More than 44% of chief intelligence officers say they are now more likely to use outsourcing suppliers than they were just five years ago.
The latest offshoring data shows that the IT sector is moving toward outsourced suppliers most quickly. In fact, about 64% of outsourced offshore technology functions have to do with software application development.

The same research has shown that 51% of technology executives outsource application and software maintenance, and 40% outsource their data centers.

Saving money is a major motivation for outsourcing IT.
Freeing up resources to focus on core business is the most widely cited reason for outsourcing IT functions, at 49%. Saving money is secondary, but still a top priority. About 45% of companies outsourcing IT functions say that their information technology outsource projects are meant to save money.

About 46% say outsourcing lets them access skillsets that aren’t available in-house.

You may be also interested in:
LLC Business Formation Services for 2023
Credit Cards for Newly Established Businesses
Fortunly's Guide to Startup Business Loans
Business Checking Accounts Reviewed
Top Privacy Policy Generators in 2023
71% of financial service executives outsource or offshore some of their services.
Financial companies are among those that outsource the most. About 70% of retail and transportation firms do the same, while pharmaceutical companies currently hold the top spot, with roughly 82% of these organizations outsourcing some of their services.

80% of financial companies and institutions are implementing or considering implementing robotic process automation.
The trend toward automation is accelerating, as outsourcing statistics like this one show. Robotic process automation is often the first step a company can make toward digital labor, and most financial companies are already implementing it.

What’s more, 81% of financial companies are satisfied with their robots, meaning that continued growth is all but guaranteed. This trend is currently most visible in HR and invoice processing sectors, where bots are increasingly replacing people.

The global IT outsourcing market revenue is projected to reach $460.10 billion in 2023.
IT outsourcing is projected to continue growing at a 11.07% CAGR until 2028, and is projected to reach $777.7 billion by that time. Currently, the most revenue in the IT outsourcing market is generated in the US, with $167.90 billion projected by the end of 2023.

More than 654,093 Californians have lost their jobs to China since 2001.
Californian economy has suffered the most in the US when it comes to jobs lost to outsourcing, mainly because of Silicon Valley and the shrinking of the state’s apparel industry.

A quick look at jobs lost by industry illustrates why California, as the home of most US tech giants, suffered so much. Of 3.8 million jobs that the United States has lost to China since 2001 when the country joined the WTO, 2.89 million were in manufacturing. Out of all Californian jobs lost to China, 74% were in the manufacturing sector.

Worldwide, the financial and accounting business processing outsourcing market is expected to reach $60.31 billion in 2023.
The same data shows that this market is expected to grow at a 9.1% CAGR from 2023 to 2030, with order-to-cash segment representing over 50% of the market share. The biggest factor driving this market growth is the increased need for cost-effective services with advanced technologies.

The global outsourced customer experience market was estimated to be worth $74.16 billion in 2022.
Outsourcing statistics by year demonstrate that customer service is among the most outsourced processes for large companies and financial organizations. Since most businesses believe that improving customer experience is a top priority, it’s not surprising that growth is projected to continue throughout 2023.

The value of the market is projected to increase to $80.7 billion by 2028, growing at a CAGR of 3.42%.

The most commonly outsourced jobs in small businesses are accounting and IT.
Small businesses usually turn to outsourcing when it comes to accounting and IT because those tasks require proficiency and skills that they might not possess internally. That’s why the data shows that 37% of all accounting and IT tasks get outsourced. Digital marketing tasks follow at 34%, with development and human resources at 28%.

However, a report from Gartner in 2022 showed that some 60% of finance and accounting outsource contracts are not expected to be renewed by 2025.

27% of small businesses outsourced to improve efficiency and save time in 2022.
Small business owners care about efficiency above all. Compared to larger companies, these businesses usually cannot afford or simply do not have access to the necessary resources to build a team from scratch. The same survey found that 35% of small businesses outsource to access flexible resources, whilw 26% of small businesses with 10 or fewer employees outsource with the goal of working with an expert.

29% of businesses with fewer than 50 employees outsource, compared to 66% with 50 or more employees.
Smaller businesses are less inclined to spend money on outsourcing when compared to global outsourcing companies, as they usually feel like it is better to keep the money inside their firm and do things themselves. When they do outsource, smaller companies tend to turn to freelance workers.

83% of small businesses plan to maintain on increase their spending on outsourced services in 2023.
Most small businesses state that the main reason they wish to increase spending on outsourcing has to do with the ability to manage the scaling up or down quickly, as well as supplementing their current teams or filling in the skill gaps, along with the fact that hiring outside usually costs less than hiring in-house.

76% of executives in the business and technology sectors say that their companies outsourced IT services.
Out of this number, the biggest share of outsourced IT work comes in the form of cybersecurity (81%), followed by app and software development (79%) and IT infrastructure services (77%).

deloitte business outsourcing info

Small businesses spent an average of $198,550 on outsourced service providers in 2022.
With the growing demand and shift to outsourced specialist and specialized agencies, this number is expected to grow even more in the coming years.

57% of companies in 2022 used traditional outsourcing because of the overall need to cut operational costs.
The same research found that the second most-quoted reason were shifts in business strategies and operating models, with 51% of responders claiming this is why they increasingly rely on outsourced work, while 49% claimed that the biggest reason was to gain access to new capabilities.

In Conclusion
The US administration is focused on bringing manufacturing and other outsourced industries back to American soil, but overall, global trade policies remain in constant flux. Tariffs, quotas, and geopolitical factors are sure to keep outsourcing on the radar for many years to come.

The outsourcing statistics we’ve gathered also show an obvious split between small businesses and large corporations as emerging technologies like artifical intelligence and robotic automation change the market even further.

While outsourcing is likely to continue growing, the functions that are outsourced and the companies that rely on outsourcing may change. Operations are generally moving in-house, while key sectors like software development and maintenance remain outsourced.

Sources
Statista
Deloitte/Wall Street Journal
Computer Economics
Los Angeles Times
Gartner
Entrepreneur
Clutch
Forbes
Upwork
Deloitte
Daxx
European Corporate Governance Institute
Raconteur
FAQ
What is the success rate of outsourcing?
+

Which country outsources the most?
+

Which industry outsource the most?
+

ABOUT AUTHOR
G. Dautovic
G. Dautovic
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.

More from blog
15+ Black Friday and Cyber Monday Statistics for 2023
November 14, 2023
Read full story
15+ Black Friday and Cyber Monday Statistics for 2023
How Many Ethereum Are There? 25+ Ethereum Stats and Facts for 2023
July 28, 2023
Read full story
How Many Ethereum Are There? 25+ Ethereum Stats and Facts for 2023
How Much Does the Average American Spend on Thanksgiving? 15+ A-Maize-Ing Statistics
November 07, 2023
Read full story
How Much Does the Average American Spend on Thanksgiving? 15+ A-Maize-Ing Statistics
How the War in Ukraine Affected the Economy: 15 Important Stats and Facts
November 25, 2022
Read full story
How the War in Ukraine Affected the Economy: 15 Important Stats and Facts
Leave your comment
Your email address will not be published.

Comment *
Enter your message
Your name *
Enter your name
Your email
Enter your email

There are no comments yet
Fortunly Logo
Behind the Fortunly name stands a group of enthusiasts - connoisseurs of all things financial - united around a single mission: to make the complicated world of money accessible to everyone.

Follow Us
PRODUCTS
Credit Cards
Loans
Insurance
Business
Banking
Financial Services
Investments
Mortgage
REVIEWS
Business Loans
Credit Repair
Personal Loans
Trading and Investing
Credit Cards
Debt Relief
Bookkeeping & Accounting
Pet Insurance
Business Formation Services
Banking
Expense Management
Tax Solutions
Cryptocurrency
Money Transfer
Real Estate
Identity Theft and Credit Protection
Legal Services
Blog
News
About
Contact
Advertiser Disclosure: Fortunly.com is an independent review site dedicated to providing accurate information about various financial and business-related offers. Fortunly.com remains financially sustainable by participating in a series of affiliate partnerships - it’s visitors’ click on links that cover the expenses of running this site.

How and where the offers appear on the site can vary according to the partnership terms. Affiliate partnerships may affect where a particular product is listed within a review, but they don’t affect the review’s content in any way.

Our pages may include reviews of products or services for which we do not receive commission and are not tied to affiliate partnerships; information included in these reviews has been solely collected by Fortunly.com and has not been reviewed or provided by the issuer of this product or service. Product/service details may vary. Please see the issuer’s website for current information.

Fortunly.com’s in-house writing team writes all the site’s content after in-depth research, and advertisers have no control over the personal opinions expressed by team members, whose job is to stay faithful to the truth and remain objective. The Fortunly.com website does not include reviews of every single company offering loan products, nor does it cover all loan offers or types of financial products and services available.

© 2023 Fortunly.com All rights reserved
Privacy · Terms

A RAPTIVE PARTNER SITE

We have researched the newest data and pulled out all the most important outsourcing statistics for 2023 in order to show you how outsourcing is shaping our world.