Outsourcing Statistics: What the Numbers Will Tell You

If you still don’t know about the many benefits of outsourcing, then you are already far behind, far behind. In recent years, outsourcing has gone from being a hot trend to a standard in business. Outsourcing statistics will tell you that the number of companies employing this strategy is increasing every year and the practice has now spread to industries traditionally not known to employ outsourcing. Now, even entrepreneurs and small business entities are taking advantage of the many benefits that hiring offshore companies and individuals brings.

When the concept was first introduced during the 1970s (although some experts would argue that the history of outsourcing dates back a long time), only manufacturing companies are outsourcing some or most of their job functions to other companies. . So as it is now, the main reason to outsource is to save money. Wanting to expand but realizing the cost implications of hiring new staff and creating new departments, companies simply considered outsourcing their menial but still important requirements to third parties. As a result, companies can still pursue their growth aspirations while reducing costs.

With the onset of globalization and with the invention of the Internet and other communication technologies, the vast pool of highly skilled but affordable labor that is present in the East and other developing countries became accessible to Western companies. Countries like the Philippines and India are just two of the Asian countries that more developed countries turn to for cheap but quality work. By 2005, outsourcing statistics have shown that the industry has reached the $ 10 billion mark. Since then it has been growing continuously almost exponentially and the interesting thing is that it is not expected to slow down even in the face of the recession that the United States and other major economies are experiencing.

Here are some more interesting outsourcing statistics and data for you:

. Information technology remains the most outsourced type of work, accounting for nearly 30% of the entire industry. Human resources and sales follow closely.

. The most popular sources of labor are the Philippines, India, and China. Businesses favor these three countries because of their stable communication infrastructure and the presence of highly trained and skilled individuals who are fluent in both written and spoken English.

. It has been estimated that more than 4 million jobs have been transferred from Western countries to developing countries due to outsourcing. This number is expected to increase exponentially in the coming years.

. The economic development of India, as well as other developing countries, has been largely attributed to its ability to provide cheap but reliable labor.

Let these outsourcing facts and statistics give you an idea of ​​how great the concept is and what it can do for your business. Your hesitancy to outsource may be affecting your company’s ability to compete and grow in this highly competitive business environment. Therefore, you should seriously consider outsourcing to expand your business and make it globally competitive.