Outsourcing Statistics 2023 — 18 Key Figures
Outsourcing statistics show us how outsourcing in today’s world is doing in every business. However, what are these figures?
In this article, we will talk about the situation of outsourcing in 2023. We will check the figures that will allow you to see the growth of outsourcing nowadays.
After you finish this article, you will know the latest outsourcing statistics that will allow you to know the growth of outsourcing in 2023. Additionally, it will enable you to decide if it is time for your company to also use outsourcing.
Before we show the factors affecting outsourcing and the latest outsourcing statistics nowadays, we will give a brief description first of what outsourcing is.
Outsourcing is the process of looking for an external party supplier. The external party supplier is hired to take on some activities of the management. Usually, it is linked to a lack of critical scale, investments for in-house experts, or the need to buy something quickly in the market.
The underlying principle of why companies choose to outsource is that third-party providers focus on the particular tasks assigned by the company which they are able to do cheaper, faster, and better than the hiring company could.
The Expansion of OutsourcingAcross The Globe
The COVID-19 pandemic has accelerated the idea of working remotely and technological advancements which is one of the reasons why the outsourcing industry expands in 2022.
However, the difference is that the year’s prediction of growth in the outsourcing industry would most likely happen away from the usual outsourcing hubs which are India and the Philippines.
Due to digital transformation, the growing popularity of remote work for outsourcing has the opportunity to flourish in 2023.
The growing outsourcing destinations like Egypt and Ireland will be able to continue their growth in 2023 along with new player countries that are yet to establish themselves.
Automation and OmnichannelAre The Standard
Automation and omnichannel are rapidly becoming outsourcing mainstays in 2022. New technology like robotic process automation (RPA), machine learning, artificial intelligence (AI), and big data analysis has advanced to the point that they have become essential differentiators for outsourcing looking to gain a competitive advantage.
Both automation and omnichannel have been trending for a while now. This is due to the events that have transpired in the last few years which have accelerated the widespread adoption of these technologies that are becoming the standard in the years to come.
A recent study has found that 93% of organizations are considering or have already adopted cloud services to enhance outsourcing. Additionally, 83% of financial organizations are considering or implementing robotic process automation.
The advancement in automation and omnichannel have been big. However, the pandemic has provided a great trial run for customers. Many customers have become more used to things like chatbots and automated online interactions than ever before.
Additionally, the need for automation has grown alongside the shortage of talented people in outsourcing. As the competition for outsourcing continues to rise, many organizations have adopted automation in omnichannel technology to cope with the lack of outsourcing talents.
Finding Outsourcing Talents
Finding and keeping outsourcing talents are more difficult than ever before for the outsourcing and BPO industry in 2021. Health concerns, economic pressures, quarantine measures, and remote work all contributed to the historic labor shortages. Furthermore, this trend will continue up until this year but not just because of COVID-19.
Workers across many industries have reevaluated their relationships at work. Workers are now demanding wage benefits, and better benefits, and choosing to leave the industry if they do not feel they are treated well enough.
Outsourcers are not just competing against other local outsourcing providers for talent. They are also competing with other organizations that offer remote work, as well as other industries that can meet the needs of potential talents. This year, only those companies that can adjust to the market’s demands will win the war for top outsourcing talent.
Outsourcing Statistical FiguresThat You Should Know
1. According to Time Doctor, the IT outsourcing spending will be $519 billion in 2023, a 22% increase over 2019’s numbers.
2. According to data from Statista, there will be a steep incline in revenue generated from IT outsourcing from 2023 to 2027.
3. Business process outsourcing (BPO) is another core outsourcing service that’s due to continue in popularity going into 2023.
4. In 2023, there’s a strong chance that attention to outsourcing services will be turned toward locating talents who can do jobs that few others can.
5. It is likely that the trend for traditional outsourcing services in 2023 will decrease as technology continues to advance.
6. The productive hour pricing bids from BPOs in the US will continue to increase in 2023.
7. Nearshore and offshore growth will continue due to wage inflation and rising cost in the US.
8. In 2023, most nearshore markets will remain relatively unsaturated and capable of delivering high performance and scale.
9. 2023 will be one of the biggest years on record for organizations that are looking to improve lives through outsourcing.
10. According to Everest Group, the impact sourcing market currently has 350,000 workers worldwide, with Africa employing 17% and Asia-Pacific at 58%.
11. Outsourcing will play a crucial role in helping organizations to improve efficiencies and contain costs throughout 2023.
12. Cost pressures on offshore and nearshore BPOs will continue throughout 2023.
13. The outsourcing industry will continuously rise in 2023, earning huge profits and market value.
14. The demand for cross-platform app development has increased in 2022 and will continue to rise until the third quarter of 2023.
15. According to a report by Commit, the greatest concern over outsourcing talent is the quality of work.
16. According to Gartner, almost 60% of finance and accounting outsourcing contracts will not be renewed by 2025.
17. In 2023, there is a growing trendline toward in-center staffing in some offshore and nearshore sectors.
18. There will be huge demand from new and established outsourcing buyers which will continue to remain strong until the end of 2023.
+ What are Outsourcing statistics?
Outsourcing statistics show the growth of outsourcing in 2022.
+ What is Outsourcing?
Outsourcing is the process or approach of looking for an external party where you can delegate some of the processes in your company.
+ What country has the most outsourced jobs?
India has the most outsourced jobs due to its large population and favorable cost of living. Thus, it is one of the favorite outsourcing locations in Asia for 2023.
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