Written by Marijn Overvest | Reviewed by Sjoerd Goedhart | Fact Checked by Ruud Emonds | Our editorial policy

7. 10% CAGR to 2030: Global BPO market to $525 billion

Forecasts show the BPO market growing at about a 9.8% compound annual rate and reaching roughly $525.2 billion by 2030, up from ~$302.6 in 2024. 

This trajectory reflects demand for digitized, outcome-based services across HR, finance, CX, and IT. 

8. 92% of Global 2000 companies use IT outsourcing

IT outsourcing is near-universal at enterprise scale, covering software development, cloud operations, and cybersecurity to accelerate delivery and manage complexity.

This adoption reflects a focus on scalable talent, 24/7 coverage, and cost optimization while internal teams prioritize strategy and architecture.

9. 90% of companies see cloud computing as a key enabler for outsourcing

Cloud platforms make it easier to externalize workloads by offering elastic scale, global reach, and integrated security/compliance services.

This shifts outsourcing toward platform-led models (SaaS/PaaS/IaaS), where providers deliver faster rollout and measurable outcomes while buyers focus on governance, data, and value.

10. 27.2% average cost savings from outsourcing HR

Organizations cut fixed overhead by shifting payroll, benefits administration, and compliance to specialized providers, reducing tooling and headcount while improving process consistency.

Savings vary by scope and maturity, but typically translate into leaner back-office operations and access to on-demand expertise.

11. 50% of marketers outsource some content marketing in 2025

Outsourcing remains common in content programs, with about half of marketers tapping external creators or agencies for production and execution.

This blend helps teams scale output, fill skill gaps, and control costs while keeping strategy in-house.

12. SMBs prioritize strong problem-solving skills when choosing outsourced teams

Small businesses rank problem-solving as the top trait ahead of years of experience, cost, and reviews in UpCity’s poll (ranked on a 1–7 scale, not a percentage).

This highlights demand for partners who can diagnose issues fast and propose workable fixes, not just provide capacity.

13. 65% say “focus on core functions” is the top outsourcing benefit; 63% cite cost reduction

Organizations outsource to free internal teams for strategic work, shifting routine operations to specialists to gain speed and focus.

Cost savings remain a close second, but the primary value is redeploying talent to higher-impact initiatives and accelerating execution.

14. India is the most attractive country for outsourcing business services

Kearney’s Global Services Location Index ranks India first, driven by cost advantage, large talent pools, and strong skills across IT and business services.

This top position reinforces India’s role as the default hub for offshoring and shared services. 

15. Up to 70% labor cost savings by outsourcing to the Philippines

Companies tap the Philippines’ large English-speaking talent pool and 24/7 delivery to lower payroll outlays across IT-BPM and CX roles while maintaining service quality.

Actual savings vary by role seniority, location, and vendor model; smart buyers offset management overhead and reinvest part of the delta into training, QA, and continuity.

16. The outsourcing services industry in China is worth over USD 175 billion

China’s services outsourcing (ITO/BPO) exceeds $175B, reflecting deep vendor capacity across software, CX, and back-office operations.

Scale, government support, and strong engineering talent make China a major hub for both domestic and export contracts.

17. Over one million new employees join the services outsourcing industry in China each year

The industry absorbs over one million new hires annually, indicating a deep and renewable labor pool for large ITO/BPO programs.

This scale supports rapid ramp-ups, multi-language CX, and cost resilience, while emphasizing standardized onboarding, QA, and training to maintain service quality.

18. The BPO market in Japan is expected to reach USD 38 billion by 2025

Japan’s BPO sector is projected to reach about $38B in 2025, reflecting steady demand for finance, HR, and customer operations outsourcing.

Labor shortages, digital transformation, and the need for scalable service quality in a mature, high-cost market drive growth.

19. 70% of British B2B companies outsource key operations

Outsourcing is mainstream in the UK’s B2B sector, covering functions like IT, finance, and customer operations.

Firms use external partners to add capacity fast, control costs, and stay focused on core growth.

20. 34% of UK B2B organizations outsource IT support

Companies delegate help desk, endpoint management, and infrastructure support to specialists for faster response times and access to hard-to-hire skills.

This frees internal teams to focus on product and data initiatives while ensuring predictable service levels and costs.

21. Among small businesses, accounting and IT services are the most popular outsourced processes

Small businesses most often externalize bookkeeping/payroll and IT support/dev to access specialized expertise and reduce overhead. 

These routine, compliance-heavy, tool-intensive functions fit managed providers with standardized workflows, faster setup, and predictable costs.

22. 25% of small businesses outsource to increase efficiency

SMBs turn to external partners to streamline workflows, shorten cycle times, and free teams from routine tasks.

Efficiency gains come from standardized processes, specialized tools, and on-demand expertise that’s faster to spin up than hiring in-house.

23. 23% say high cost is the biggest outsourcing challenge

Small businesses most often point to pricing as the main hurdle; setup fees, scope changes, and hidden charges can undermine savings.

Mitigate by comparing the total cost of ownership, tightening requirements, and setting clear caps and benchmarks in contracts.

24. Over 50 million Americans engage in some form of freelance work 

Freelancing is now a mainstream labor channel, supplying on-demand talent across design, engineering, marketing, and CX.

For companies, this expands capacity without permanent headcount, enabling faster project starts and flexible costs.

25. 38% of the U.S. workforce is freelancers

Freelancing is a mainstream labor channel supplying on-demand skills across design, engineering, marketing, and CX.

For companies, this expands capacity without permanent headcount and complements outsourcing strategies with flexible, project-based talent.

26. Approximately 300,000 jobs are outsourced from the United States every year

This signals a steady annual flow of roles shifting to offshore or third-party providers across IT, customer support, and back-office work.

Companies pursue cost efficiency, scale, and 24/7 coverage, while managing risks through clear SLAs, governance, and reskilling plans.

27. 80% of executives plan to maintain or increase outsourcing investment

Leadership expects third-party partners to remain critical for speed, specialized talent, and cost flexibility, even in uncertain markets.

Budgets are holding or growing toward digital, AI, cybersecurity, and cloud-managed services, with buyers prioritizing clear outcomes and adaptable pricing.

28. 74% of employers struggle to find skilled talent

Persistent talent shortages push organizations to external partners to fill critical roles faster and keep projects on track.

Outsourcing, MSPs, and freelance talent help close gaps in areas like data, engineering, AI, and cybersecurity while providing cost and capacity flexibility.

29. 30% of CPO teams use managed services and BPO to boost capacity

Deloitte’s 2023 CPO Survey shows that 33% of leading procurement organizations use hybrid managed-service models and 33% use traditional BPO as key levers to handle workload and skill gaps. 

This confirms that augmenting procurement with external partners has become a standard operating model.

30. 5–10% direct savings on outsourced spend and a 1–2 year payback

Everest Group’s procurement outsourcing benchmarks find 5–10% savings on outsourced spend with a typical 1–2 year payback period, a conservative, citable ROI range for procurement outsourcing.

31. 89% of CPOs plan to scale GenAI in 2025, with greater reliance on partners

The Hackett Group reports that 89% of procurement leaders aim to scale GenAI in 2025.

In parallel, Everest Group notes that service providers are embedding GenAI into source-to-contract offerings (autonomous sourcing, intake, contracting), which in practice means faster adoption via MSP/BPO partners.

32. 70% of companies outsource important strategic functions

Outsourcing is no longer limited to transactional tasks; firms now entrust strategy-linked work (e.g., analytics, product/IT roadmaps, and transformation programs) to specialist partners.

The goal is faster execution, access to scarce expertise, and flexible capacity while internal teams focus on core differentiation, guided by clear governance and outcome-based contracts.

33. 50% of companies outsource production and delivery functions

Firms rely on contract manufacturers and 3PLs to scale capacity, reduce CapEx, and speed fulfillment without expanding in-house operations.

The model shifts focus to quality oversight, supplier reliability, and clear SLAs to protect lead times and customer experience.

34. 33% of companies outsource marketing and sales processes

Organizations externalize lead generation, campaign execution, SEO/SEM, and parts of the sales funnel to tap specialized skills and scale faster. 

This approach adds flexible capacity and outcome-based expertise while in-house teams focus on product positioning, messaging, and customer relationships.

35. 37% expect IT outsourcing costs to rise over the next three years

Enterprises anticipate higher spend driven by cloud modernization, security requirements, and scarce tech talent, especially across infrastructure, application development, and cybersecurity.

36. 57% of hiring managers struggle to find qualified IT talent; 43% plan to expand IT teams in 2025

Demand is rising even as the talent gap persists, forcing companies to balance hiring with outsourcing, contractors, and MSPs to keep delivery on track.

Expect stronger competition for engineers and security roles, plus greater use of nearshore/offshore partners to accelerate projects and control costs.

37. 85% success rate in meeting or exceeding IT outsourcing service levels

Most providers hit or surpass SLA targets, with the strongest performance in web operations, cloud infrastructure management, and data center support.

For buyers, this validates managed operations as a reliable model, provided contracts define clear KPIs, escalation paths, and continuous improvement reviews.

38. 66% of U.S. firms outsource at least one department

Outsourcing is mainstream across U.S. companies, commonly covering IT, finance, HR, and customer operations to access specialist skills and control costs.

The model adds flexible capacity and faster execution while internal teams focus on core priorities under clear SLAs and governance.

39. 52.5% U.S. vs 47.5% Europe in 2025 software-dev outsourcing revenue ($213.6 vs $193.1 billion)

The U.S. is projected to capture a slightly larger share of software development outsourcing spend than Europe, indicating strong demand for nearshore/offshore delivery into the U.S. market.

For providers, this split favors North America–aligned time zones and compliance standards, while buyers can benchmark rates and capacity across both regions to balance cost, talent, and speed.

40. 77% of companies will outsource IT infrastructure services by 2025

Organizations are shifting infrastructure to managed providers for reliability, 24/7 coverage, and access to scarce skills.

This lets internal teams focus on architecture and business enablement while partners handle uptime, patching, and scalability under clear SLAs.

41. 8.8% CAGR to 2033: Global IT outsourcing to $1.095T (from $471.1 billion in 2023)

The market is projected to more than double over the decade, driven by cloud modernization, cybersecurity, and AI engineering demand.

Buyers are shifting toward managed and outcome-based models for speed, scalability, and predictable costs.

42. 5.5% CAGR to 2025: Global IT outsourcing to $651.54B

Steady growth reflects ongoing demand for cloud modernization, cybersecurity, and AI engineering delivered by specialized partners.

Buyers favor managed, outcome-based engagements for speed, scalability, and predictable costs while internal teams focus on strategy and architecture.

43. 31% growth by 2029: Software & IT outsourcing $613.69 billion (2025) → $806.53 billion (2029) 

The market is projected to expand by roughly a third in four years, reflecting sustained demand for cloud modernization, AI engineering, and cybersecurity.

Providers’ winning share will pair outcome-based pricing with rapid delivery, while buyers balance cost, speed, and compliance across nearshore and offshore hubs.

44. 7.03% CAGR: APAC IT outsourcing to $129.78 billion by 2025

APAC’s IT outsourcing revenue is projected to hit about $129.78 billion, with steady 7% annual growth through 2030.

Demand is fueled by cloud modernization, cybersecurity, and AI delivery hubs across India, the Philippines, China, and Southeast Asia, offering scale, skills, and cost efficiency.

45. $5.34B by 2025: Eastern Europe IT outsourcing market

Eastern Europe’s IT outsourcing is projected to reach about $5.34 billion in 2025, reflecting steady demand for engineering talent across Poland, Romania, Ukraine, and the Baltics.

Clients look to the region for strong technical skills, competitive rates, and cultural/time-zone proximity to Europe, supporting nearshore delivery and hybrid teams.

46. 84% of CFOs report a significant finance & accounting talent shortage

With specialized skills in short supply, companies lean on outsourcing and managed services to keep close cycles, reporting, and compliance on track.

Expect more automation, shared-service models, and partner-led upskilling to stabilize capacity and reduce risk.

47. 60% of finance & accounting outsourcing contracts will not be renewed by 2025

Enterprises are pivoting away from traditional F&A BPO toward digital, automation-first models with analytics, self-service, and outcome-based pricing.

Providers that fail to modernize risk churn as buyers rebid for flexibility, real-time visibility, and faster close cycles.

48. 60%+ of organizations will involve outsourcing providers in strategic planning by 2025

Companies are elevating vendors from execution partners to co-creators of roadmaps, tapping external expertise for transformation, AI adoption, and operating-model design.

This shift favors outcome-based relationships, joint KPIs, and earlier supplier involvement to accelerate decisions and reduce delivery risk.

49. 63% of companies outsource primarily to reduce or control costs

Cost discipline is the leading driver for outsourcing, with firms shifting repeatable work to specialized providers to lower fixed overhead and improve unit economics.

Savings come from standardized processes, shared tooling, and scalable teams, freeing budgets for growth and innovation.

50. 77% of companies outsource cybersecurity functions

Organizations turn to managed security partners for 24/7 monitoring, incident response, and compliance as in-house teams face talent shortages and rising threat complexity.

This favors MDR/SOC models with clear SLAs, audited controls, and outcome-based reporting.

51. 64% of IT leaders globally choose outsourcing for software development

Technology leaders externalize engineering to access scarce skills, accelerate delivery, and scale capacity on demand.

Common models include nearshore/offshore squads and staff augmentation aligned to product roadmaps, with clear SLAs, code quality gates, and IP protections to ensure reliable outcomes.

52. 72%+ of U.S. tech companies outsource software development, testing, and infrastructure support

Tech firms lean on external partners to scale engineering capacity, speed releases, and secure always-on operations.

Outsourcing blends nearshore/offshore squads and managed services, letting in-house teams focus on product strategy, architecture, and customer outcomes.

53. 40% of companies use outsourcing to increase flexibility

Firms turn to external partners to scale capacity up or down without adding fixed headcount or long-term commitments.

This flexibility helps teams respond faster to demand swings, new projects, and market shifts while keeping core staff focused on priorities.

54. 53% of companies outsource due to capacity issues

Organizations use external partners to handle surge work, reduce backlogs, and avoid hiring delays when teams are at full load.

Flexible resourcing adds throughput without long-term headcount, keeping projects on schedule while core staff focus on priority work.

55. 38% of companies outsource customer service functions

Firms externalize contact centers to scale coverage, handle demand spikes, and add multilingual support.

This boosts responsiveness and cost efficiency while in-house teams focus on product and experience design.

56. 43% of tech companies plan to increase outsourcing spend in 2025

Technology firms are budgeting more for external partners to accelerate delivery, access scarce skills, and control costs amid rising demand for AI, cloud, and cybersecurity.

Expect greater use of nearshore/offshore squads and managed services with tighter, outcome-based SLAs.

57. 34% cite cost optimization as the primary motivation for outsourcing

Companies prioritize lowering fixed overhead and improving unit economics by moving repeatable work to specialized providers.

The focus is on total cost of ownership, standardized processes, shared tooling, and scalable teams that free budget for growth.

58. 60% of online retailers outsource part of fulfillment; 12% outsource all (full outsourcing to grow 50% in 3–5 years)

E-commerce brands lean on 3PLs to add capacity, speed up delivery, and control costs without expanding in-house ops.

The projected 50% rise in full outsourcing signals a shift toward end-to-end partners as order volumes and channel complexity increase.

59. 90%+ of Fortune 500 companies use at least one 3PL provider

Logistics outsourcing is mainstream at enterprise scale, with large brands relying on 3PLs for warehousing, fulfillment, and transportation coverage.

This model adds flexible capacity, multi-node networks, and peak-season scalability while in-house teams focus on inventory strategy and customer experience.

60. Over 75% of companies have adopted managed services for at least one business function

KPMG reports that more than 75% of firms have implemented managed services in at least one function or scaled them enterprise-wide.

This shows that outsourcing/managed-services models are used not only for support work but also to deliver core processes with an outcome focus.

Conclusion

In conclusion, the outsourcing landscape in 2025 showcases robust growth, notably in IT services and technological adoption. The industry is witnessing a transformative shift with automation, cloud technology, and virtual assistants becoming integral.

Despite global expansion, talent acquisition challenges persist, accentuated by the demand for better benefits and remote work options. The COVID-19 pandemic has accelerated the rise of remote work, prompting emerging outsourcing hubs like Egypt and Ireland.

As businesses adapt to these changes, the outsourcing sector faces a pivotal moment, balancing innovation with talent retention to navigate the evolving demands of the market.