Our unique recruitment process has been paramount to our offshore staffing success and how we’ve become a leading Philippines Staff Outsourcing provider.
Our unique recruitment process has been paramount to our offshore staffing success and how we’ve become a leading Philippines Staff Outsourcing provider.
The Ultimate List of Outsourcing Statistics and Trends in 2024 & Beyond
Businesses have consistently leveraged outsourcing to improve operational efficiency, reduce costs, and tap into specialised expertise. With ongoing talent shortages and the accelerating pace of digital transformation, outsourcing has become a strategic advantage and a necessity for staying competitive.
The state of global outsourcing
The global outsourcing industry remains a formidable force, with a market value surpassing $92.5 billion as of 2024. In the United States alone, approximately 66% of businesses outsourced at least one department in 2023, highlighting the integral role outsourcing plays in contemporary business strategies.1,2
Figure 1. Key functions that businesses outsource.
Executives are increasingly turning to outsourcing to manage critical professional services, with a significant portion of companies outsourcing key functions such as:
Legal services (64%)
Tax (61%)
Finance (51%)
Product development (45%)
IT (76%)
Source: Deloitte Global Outsourcing Survey 2022 3
Recent reports reveal that 56% of companies globally are struggling to access talent, a challenge particularly acute in the healthcare, technology, media, and telecommunications sectors.5
Despite the growth and benefits of outsourcing, a notable portion of organisations remain hesitant.
Fewer than 48% of organisations currently use outsourcing, while over half do not engage in it at all. Additionally, 14% of organisations plan to reduce their outsourcing activities in the coming year.4,6
Global Business Services (GBS) is also advancing its Environmental, Social, and Governance (ESG) efforts.
With 50% of GBS organisations prioritising ESG initiatives, social responsibility and diversity have become key areas of focus. Approximately 60% of these organisations actively support a range of ESG goals, including enhanced reporting.7
Why do businesses outsource?
Outsourcing has long been recognised as a strategic lever for driving cost efficiency, with 57% of businesses citing cost savings as their primary motivation. The financial advantages are considerable—outsourcing can reduce labour costs by up to 70%, making it an attractive option for companies focused on streamlining operations and improving profitability.3,8
When selecting a managed services provider, companies prioritise several factors beyond cost. The top five reasons include:
Process expertise (26%)
Industry expertise (24%)
Advisory capabilities (14%)
and technology platforms and capabilities (12%).
Source: KPMG and HFS Research Managed Services Outlook 2023-20244
Talent acquisition and retention continue to be critical challenges for CEOs, with talent ranked among the top 10 risks to growth over the next three years.
This concern is shared by 50% of executives who view talent acquisition as a significant barrier to achieving their strategic goals. Additionally, 56% of executives believe their organisations lack effective mechanisms to retain talent, reinforcing outsourcing as a viable solution for addressing these gaps.3,9
Countries dominating the outsourcing market
India, China, and Malaysia continue to dominate the offshoring landscape, bolstered by their cost advantages and skilled labour forces. In a notable shift for the Western economy, the United Kingdom has entered the top five offshoring destinations, demonstrating its growing competitiveness.10
Asia remains a focal point for outsourcing, with India standing out as the premier choice due to its highly skilled and cost-effective labour pool. Meanwhile, South Africa is emerging as a promising offshore hub, despite grappling with infrastructure and political challenges, signalling the region’s growing potential.11
The Philippines has firmly established itself as the leading provider of contact centre services in the U.S. market.
It holds the largest market share in outsourced contact centres—a testament to its world-class customer service and English proficiency. Additionally, the country’s Information Technology and Business Process Management (IT-BPM) sector recorded significant growth in 2022, with revenues rising by 10.3% to $32.5 billion and the workforce expanding by 8.4% to 1.57 million employees.11,12
Shared Service Centers (SSCs) have also evolved over the years.
India, Poland, and Mexico leading the global SSC landscape. These countries leverage large talent pools and cost efficiencies, while the USA, Malaysia, and China are making notable advancements in the sector. Countries such as Bulgaria, Ireland, Mexico, Malaysia, and Poland have experienced substantial SSC growth since 2021, reflecting a broader trend toward the global centralisation of business operations.7
As we look ahead, offshoring and nearshoring activities are poised to surge.
Rising onshore talent costs, rapid technological advancements, and the increasing demand for geographical diversification are driving this trend. Emerging delivery locations across Africa, Latin America, and the Asia-Pacific region present compelling opportunities for businesses aiming to expand their delivery capabilities and enhance their Business Continuity Planning (BCP) strategies.22
IT Outsourcing Statistics
Global IT revenues exceeded $350 billion in 2021 and are projected to surpass $430 billion by 2025.
This surge is largely driven by the growing adoption of cloud computing, with 90% of companies now identifying it as a cornerstone of their outsourcing strategy. As businesses continue to shift toward digital-first models, the demand for outsourced IT services is set to accelerate.3,13
Cybersecurity remains one of the most critical aspects of IT outsourcing.
Although 91% of IT leaders have established internal Security Operations Centers (SOCs) or hired in-house security talent, 83% are actively pursuing external cybersecurity solutions to fortify their defences. This blend of internal capability and external expertise highlights the evolving complexity of today’s cyber threat landscape.14
96% of enterprises plan to accelerate their transformation initiatives over the next two years.
Key areas of focus include cybersecurity (55%), automation (49%), cloud migration (47%), and AI and machine learning (46%). These trends reflect a consistent commitment to enhancing IT capabilities, aligning with pre-pandemic agendas that continue to shape the strategic roadmap.15
Figure 2. How CEOs are harnessing generative AI in their organisations.
Generative AI is emerging as a transformative force, with 73% of CEOs designating it as a top investment priority. However, only 23% of enterprises possess the internal expertise needed to fully harness its potential.
This widening skills gap is fuelling an ongoing trend in IT outsourcing, where spending on IT contractors is projected to outpace internal IT staff by 50% by 2027, as CIOs struggle to attract and retain top talent.16,17,18
Despite rising investments in IT outsourcing, the industry grapples with a significant talent shortage.
In 2023, 54% of organisations reported needing more skilled tech professionals. This shortage drives increased demand for outsourced digital services, particularly in cloud computing, legacy system modernisation, and data analytics. As enterprises integrate generative AI into their operations, the demand for these services is expected to grow by 8-12% in the coming years.19,20
Customer Experience (CX) Outsourcing Statistics
The global call centre outsourcing market is projected to grow by USD 25.9 billion between 2023 and 2028, driven by a compound annual growth rate (CAGR) of 4.37%.
This surge is fuelled by the demand for specialised expertise and cutting-edge technologies that deliver superior customer experiences, such as omnichannel support, AI integration, and personalised engagement.23
A robust CX strategy is no longer optional—it is necessary for businesses that want to outperform their competition.
High-performing companies that implement streamlined CX strategies are already reaping substantial benefits, with improved customer satisfaction (59%), increased customer loyalty (47%), and enhanced brand awareness (44%) among the top qualitative outcomes.24
The demand for personalised experiences is strong among younger generations.
An overwhelming 88% of online shoppers are likely to continue purchasing from a site that offers personalisation, rising to 96% for Gen Z and 97% for Millennials. These consumers hold high expectations and swiftly abandon brands that fail to meet their evolving needs.25
Customer service agents are recognising the important role of technology in enhancing their performance.
74% of agents believe that access to more tools and data empowers them to personalise interactions more effectively. These tools enable agents to deliver both the efficiency that customers demand and the personalised touch that differentiates leading brands.26
Figure 3. How organisations are investing in generative AI for CX.
Generative AI is poised to be a game-changer in CX, with organisations increasingly investing in AI-driven solutions to elevate customer interactions.
An Everest Group survey of 200 CX leaders highlights this readiness:
55% of organisations plan to invest over $1 million in generative AI for CX within the next 12-18 months.
46% are piloting or deploying AI for text generation, with 21% scaling these implementations.
47% aim to introduce AI in non-voice customer support channels within 6-12 months.
19% believe AI has the potential to significantly improve customer satisfaction (CSAT).
Source: Everest Group, Enterprise Readiness for Generative AI Adoption in Customer Experience Management27
Accounting and Finance OutsourcingStatistics
91% of senior managers struggle to recruit talent in critical areas such as planning and analysis, accounts payable/receivable, bookkeeping, and budgeting.
This gap is driving businesses to increasingly turn to financial outsourcing as a solution to access the specialised expertise they need to maintain accounting operations and efficiency.28
CFOs are ramping up investments in finance technology.
92% of CFOs plan to increase their tech spending. However, only 30% of these tech projects are delivering on their promises, according to Gartner®, revealing the difficulties finance organisations face in successfully implementing digital solutions that streamline processes and drive growth.29
Figure 5. Challenges finance executives face in their digital transformation efforts.
Confidence levels among finance executives further highlight the challenges in transformation efforts.
A recent study reveals low confidence in achieving key business goals:
60% of executives express concern over retaining the right talent.
57% are unsure about leveraging advanced analytics for actionable insights.
50% remain uncertain about improving finance agility and reducing costs.
These hurdles highlight the growing value of outsourcing, particularly in functions like accounts payable, receivable, and fixed asset accounting, which remain top priorities within SSCs.7,30
Gartner® predicts a major shift by 2025, with 60% of existing BPO contracts in the finance sector expected to remain unrenewed.
This shift is driven by outdated pricing models that fail to facilitate digitisation and process improvements, prompting businesses to seek more innovative outsourcing solutions that deliver cost savings and enhanced performance.31
Small Business Outsourcing Statistics
Small businesses are driving the global demand for gig workers by using digital platforms to access a cost-effective and diverse talent pool.
Around 20% of micro-enterprises that engaged gig workers in the past year outsourced a substantial portion of their work through online platforms, underscoring the flexibility and scalability offered by the gig economy.32
Remote work is now a permanent fixture.
The shift to remote work is here to stay, with 59.9% of small businesses continuing to operate with remote employees. This trend has opened up access to a global talent pool and fostered a more flexible and resilient business model.33
2024 is set to be a breakthrough year for small businesses going global.
With 79% of SMBs citing international markets as a key growth area, businesses are looking beyond their local markets, buoyed by consumer demand—72% of whom are comfortable buying from businesses in other countries.34
Economic uncertainty and worker shortages challenge small businesses.
As economic pressures mount, more small businesses in the US are decreasing jobs rather than adding them, and owner optimism has fallen to a six-month low. Almost a third of businesses reported a drop in earnings, driven by inflation, softening sales, and ongoing worker shortages.35
Small businesses are focusing on recession-proof strategies.
Reducing non-essential spending (46%), preparing customers for recession (35%), and re-evaluating vendors and contracts (30%) are key strategies that SMBs are implementing to ensure they remain resilient in an unpredictable economic environment.36
A growing number of small businesses are investing in digital optimisation to stay competitive.
In 2022, 80% of business owners digitally optimised their operations, integrating technologies like customer service, sales, marketing, and human resources solutions to streamline their businesses and drive growth.37
Digital outsourcing platforms are expanding.
The global landscape for outsourcing platforms is rapidly growing, with nearly 500 platforms identified. Around 20% of these platforms specialise in specific tasks such as design, financial services, or web development, and less than half offer dedicated support tailored to small businesses.38
Over 80% of U.S. small businesses are solo ventures.
Out of 33.3 million small businesses, 27.1 million are run solely by their owners without additional employees. This highlights a growing trend of independent ventures dominating the small business landscape.39
Small businesses are investing in staffing and digital marketing.
Looking forward, 26% of small businesses plan to increase their staff in 2023, while 18% are focusing on expanding or remodelling their businesses, and another 18% are investing in digital marketing.40
How Outsourcing is Shaping the Future of Business
As outsourcing expands in scope and sophistication, it is reshaping the future of business. The growing demand across industries reflects the need for greater flexibility, cost-efficiency, and access to specialised expertise. What was once a choice is now a cornerstone of modern business strategy.
To stay competitive, companies must embrace these trends and adopt best practices to maximise the benefits of outsourcing. Those who adapt quickly will gain a competitive edge and safeguard their future success.
Do you have thoughts on the future of outsourcing? Share them in the comments—we’d love to hear from you.
2 Kelly, J. 2023. “How Offshoring and Artificial Intelligence Threaten U.S. White-Collar Workers.” Accessed on August 13, 2024. https://www.forbes.com/sites/jackkelly/2023/04/12/how-offshoring-and-artificial-intelligence-threaten-us-white-collar-workers
3 Deloitte. 2022. “Global Outsourcing Survey 2022.” Accessed on August 12, 2024. https://www2.deloitte.com/content/dam/deloitte/us/documents/process-and-operations/us-global-outsourcing-survey-2022.pdf
4 KPMG and HFS Research. 2023. “Managed Services Outlook 2023-2024.” Accessed on August 13, 2024. https://assets.kpmg.com/content/dam/kpmg/nl/pdf/2024/services/HFS-Outlook-report.pdf
5 BCG. 2023. “The Global Talent Crisis: How Companies Are Addressing the Challenge.” Accessed on August 13, 2024. https://www.bcg.com/publications/collections/creating-people-advantage-reports
6 SSON. 2023. “State of the Shared Services and Outsourcing Industry Survey, Q4 2023.” Accessed on August 13, 2024. https://www.ssonetwork.com/global-business-services/reports/the-state-of-the-shared-services-and-outsourcing-industry-global-market-report-2023
7 Deloitte. 2023. “Global Shared Services and Outsourcing Survey 2023.” Accessed on August 13, 2024. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/process-and-operations/us-2023-global-shared-services-and-outsourcing-survey-executive-summary.pdf
8 Outsource Accelerator. 2024. “How Outsourcing Can Cut Labor Costs by Up to 70%.” Accessed on August 12, 2024. https://www.outsourceaccelerator.com/articles/how-outsourcing-can-cut-labor-costs-by-up-to-70/
9 KPMG. September 2023. “KPMG Global CEO Outlook Survey.” Accessed on August 13, 2024. https://kpmg.com/xx/en/home/insights/2023/09/kpmg-global-ceo-outlook-survey.html
10 Kearney. 2023. “Global Services Location Index (GSLI) 2023 Full Report.” Accessed on August 13, 2024. https://www.kearney.com/service/digital-analytics/gsli/2023-full-report
11 PwC. 2023. “Global Service Study 2023.” Accessed on August 12, 2024. https://www.pwc.com/gx/en/issues/transformation/global-service-study-2023.html
12 Philippine Information Agency. May, 2023. “IT-BPM Industry’s Growth Aided by DICT Initiatives.” Accessed on August 13, 2024. https://mirror.pia.gov.ph/news/2023/05/12/it-bpm-industrys-growth-aided-by-dict-initiatives
13 Statista. 2024. “IT Outsourcing – Worldwide.” Accessed on August 13, 2024. https://www.statista.com/outlook/tmo/it-services/it-outsourcing/worldwide
14 Forbes Business Council. (October 2022). “The Future Of Outsourcing And How To Outsource The Right Way.” Accessed on August 16, 2024. https://www.forbes.com/sites/forbesbusinesscouncil/2022/10/21/the-future-of-outsourcing-and-how-to-outsource-the-right-way/
15 Boston Consulting Group. (April 2021). “Post-Pandemic Outsourcing Strategies for CEOs.” Accessed on August 12, 2024. https://www.bcg.com/publications/2021/post-pandemic-outsourcing-strategies-for-ceos
16 KPMG. (September 2023). “KPMG Global CEO Outlook Survey.” Accessed on August 12, 2024. https://kpmg.com/xx/en/home/insights/2023/09/kpmg-global-ceo-outlook-survey.html
17 ISG. (July, 2023). “The Global IT and Business Services Market Is Poised for a Rebound in 2024.” Accessed on August 12, 2024. https://isg-one.com/articles/the-global-it-and-business-services-market-is-poised-for-a-rebound-in-2024
18 Computer Weekly. (August, 2023). “Gartner: The Big IT Outsourcing Contract Returns.” Accessed on August 16, 2024. https://www.computerweekly.com/news/366566714/Gartner-The-big-IT-outsouncing-contract-returns
19 Statista. (July, 2023). “Talent Shortage of Technology Skills Worldwide 2020-2022.” Accessed on August 16, 2024. https://www.statista.com/statistics/1269776/worldwide-organizations-talent-shortage-skills-tech/
20 McKinsey & Company. (July, 2023). “Tech Services and Generative AI: Plotting the Necessary Reinvention.” Accessed on August 16, 2024. https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/tech-services-and-generative-ai-plotting-the-necessary-reinvention
21 Statista. (April, 2023). “Top In-Demand Tech Skills Worldwide.” Accessed on August 16, 2024. https://www.statista.com/statistics/1296668/top-in-demand-tech-skills-worldwide/
22 Everest Group. (July, 2023). “Forecasting the Future: Key Trends Reshaping CXM Outsourcing in 2024.” Accessed on August 16, 2024. https://www.everestgrp.com/cx-customer-experience/forecasting-the-future-key-trends-reshaping-cxm-outsourcing-in-2024-blog.html
23 Research and Markets. (n.d.). “Global Call Center Outsourcing Market 2024-2028.” Accessed on August 16, 2024. https://www.researchandmarkets.com/reports/5130940/global-call-center-outsourcing-market-2024-2028
24 Forbes. (March, 2020). “7 Steps for Creating an Ideal Customer Experience Strategy.” Accessed on August 16, 2024. https://www.forbes.com/sites/insights-treasuredata/2020/03/10/7-steps-for-creating-an-ideal-customer-experience-strategy/
25 Elastic. (n.d.). “Personalization’s Critical Role in Converting eCommerce Searches into Sales.” Accessed on August 16, 2024. https://www.elastic.co/explore/improving-digital-customer-experiences/personalizations-critical-role-in-converting-ecommerce-searches-into-sales
26 Zendesk. (January 23, 2023). “CX Trends 2023: Immersive CX.” Accessed on August 16, 2024. https://www.zendesk.com/blog/cx-trends-2023-immersive-cx/
27 TELUS International. (July 6, 2023). “Generative AI CXM Readiness.” Accessed on August 16, 2024. https://www.telusinternational.com/insights/ai-data/resource/generative-ai-cxm-readiness
28 Robert Half. (2022). “Staffing Critical Functions: 2022 Benchmarking Report.” Accessed on August 16, 2024. https://www.roberthalf.com/content/dam/roberthalf/documents/us/en/indexed/campaign/Staffing%20Critical%20Functions_%202022%20Benchmarking%20Report.pdf
29 Gartner. (December 16, 2022). “What Will Finance Focus on in 2023.” Accessed on August 16, 2024. https://www.gartner.com/en/articles/what-will-finance-focus-on-in-2023
30 The Hackett Group. (January 27, 2023). “Digital Transformation Is a Leading Priority for Finance in 2023.” Accessed on August 16, 2024. https://www.thehackettgroup.com/hackett-digital-transformation-is-a-leading-priority-for-finance-in-2023/
31 Gartner. (May 25, 2021). “Gartner Predicts By 2025, 60 Percent of Finance and Accounting Outsourcing Contracts Will Not Be Renewed.” Accessed on August 16, 2024. https://www.gartner.com/en/newsroom/press-releases/2021-05-25-gartner-predicts-by-2025-60-percent-of-finance-and-accounting-outsourcing-contracts-will-not-be-renewed
32 World Bank. (June 2023). “World Development Report 2023: Migrants, Refugees, and Societies.” Accessed on August 16, 2024. https://openknowledge.worldbank.org/entities/publication/ebc4a7e2-85c6-467b-8713-e2d77e954c6c
33 Salesforce. (2021). “How the Pandemic Inspired a New Generation of Entrepreneurs.” Accessed on August 16, 2024. https://www.salesforce.com/content/dam/web/en_us/www/documents/research/how-the-pandemic-inspired-a-new-generation-of-entrepreneurs.pdf
34 Visa. (September 2023). “Visa Back to Business 7 One-Pager.” Accessed on August 16, 2024. https://usa.visa.com/content/dam/VCOM/blogs/visa-back-to-business-7-one-pager-september-2023.pdf
35 National Federation of Independent Business (NFIB). (November 2023). “Small Business Economic Trends.” Accessed on August 16, 2024. https://strgnfibcom.blob.core.windows.net/nfibcom/SBET-Nov-2023.pdf
36 Spiceworks. (2024). “2024 State of IT Report.” Accessed on August 16, 2024. https://www.spiceworks.com/research/state-of-it/
37 Bank of America. (2023). “2023 Small Business Owner Report.” Accessed on August 16, 2024. https://about.bankofamerica.com/content/dam/about/report-center/sbor/2023/2023-small-business-owner-report.pdf
38 Natabaalo, G. (October 24, 2023). “Looking Closer at Outsourcing Platforms for Small Businesses: A Global Landscape.” Accessed on August 16, 2024. https://medium.com/strive-community/looking-closer-at-outsourcing-platforms-for-small-businesses-a-global-landscape-dc874f836684
39 Forbes. (February 3, 2023). “Small Business Statistics Of 2023.” Accessed on August 16, 2024. https://www.forbes.com/advisor/business/small-business-statistics/
40 Guidant Financial. (2023). “2023 Small Business Trends.” Accessed on August 16, 2024. https://www.guidantfinancial.com/small-business-trends/
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