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

26. In the same report, Japan’s BPO market is expected to reach $35 billion by 2025.

27. Almost 70% of British companies outsource their key business operations, a report by YouGov.

28. In the same report, over 34% of Business-to-Business (B2B) organizations in the United Kingdom outsource their IT support.

29. A report by Clutch found out that 37% of small businesses outsource at least one of their business processes.

30. As per Clutch, small businesses most commonly outsource their accounting and IT services, indicating that these processes are highly popular among them for outsourcing.

31. A report by Kearny states that India is one of the best countries where many businesses outsource their business activities. Thus, cutting a lot of their labor costs.

32. The Inter-American Development Bank (IDB) anticipates that after 2023, nearshore outsourcing will contribute an additional $78 billion to the export industries in the Caribbean and Latin America.

33. Technavio predicts that the worldwide virtual assistant market is set to expand by $4.12 billion, with a compounded annual growth rate (CAGR) of 11.79% expected between 2021 and 2025.

34. The adoption of cloud technology enables almost 90% of businesses to explore greater outsourcing possibilities by facilitating access to a broader pool of remote professionals.

35. MBO Partners reports that more than 50 million Americans engage in various forms of freelance work.

36. According to Statista, smaller organizations are more inclined to outsource their payroll services when compared to larger organizations.

37. Syntax reports that a significant 83% of IT leaders are contemplating outsourcing of their security efforts.

38. Ukraine has the fastest-growing population of IT professionals in Central and Eastern Europe. According to IT outsourcing statistics, the country is home to over 200,000 such workers, making it a potentially significant market for the IT outsourcing industry in the future.

39. Projections indicate that over the next five years, approximately 1 million jobs in countries such as the United States, Poland, India, and the Philippines could be at risk of being replaced by automation.

40. A substantial 71% of Americans perceive outsourcing as having a negative impact, with 62% expressing a desire for the government to enact a complete ban on it.

41. According to the most recent report from Grand View Research, the global Business Process Outsourcing (BPO) market was valued at $262 billion in 2022. It is anticipated to experience a robust compound annual growth rate (CAGR) of 9.4%, reaching a value of over $525 billion by the year 2030.

42. As per a report by Research and Markets, the COVID-19 pandemic has spurred the expansion of call centers on a global scale. This segment, valued at more than $461 billion in 2022, is projected to reach $742 billion by 2030. This growth represents a compound annual growth rate (CAGR) of 6.1%.

43. According to Verdict, almost 85% of Apple’s suppliers have their manufacturing facilities located in Asia.

44. Aptude reports that approximately 300,000 jobs are outsourced by the United States on an annual basis.

45. According to Insider Monkey, IBM holds the title of being the largest outsourcing company globally.

46. According to Deloitte’s outsourcing statistics, cost reduction is the primary motivation for outsourcing, with 70% of businesses citing it as their top reason.

47. According to Orient, a significant percentage, ranging from 70% to 80%, of finished manufactured products are outsourced. This outsourcing is often driven by the goal of reducing labor costs.

48. The global app development outsourcing market is expected to increase in value, going from USD 122.67 trillion in 2023 to approximately USD 145.73 trillion by 2027.

49. The pharmaceutical industry is following the global trend towards outsourcing. In 2014, the outsourced market share stood at 33.7%, and it is anticipated to increase significantly to 49.3% by 2023, according to Statista.

50. There will be huge demand from new and established outsourcing buyers which will continue to remain strong until the end of 2023.

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.

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.

Conclusion

In conclusion, the outsourcing landscape in 2023 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.