You’re probably sick of hearing it, but it is true:
IT outsourcing is gaining more and more traction.
The benefits are numerous – enhanced efficiency, reduced costs, and specialized expertise, just to name a few.
Still on the fence whether it is worth it?
We’ve prepared the most recent IT outsourcing statistics to help tip the scales and answer all your burning questions. Let’s take a look:
Fascinating Facts About IT Outsourcing
- The IT Outsourcing market’s revenue will hit $541.10bn in 2024.
- More than 94% of companies globally employ some sort of IT outsourcing.
- 72% of businesses outsource IT tasks and projects to save money.
- The IT sector has over 55% of the shares in the outsourcing industry.
- 52% of companies plan to outsource one or more of their business’ processes.
Now.
We’ll break those down:
General IT Outsourcing Statistics:
Let’s first cover the basics.
How big is the IT outsourcing industry? How many companies rely on it?
See for yourself:
1. IT has over 55% of the shares in the outsourcing industry.
(Source: WhatstheBigData.com)
Yup, you read that correctly. IT outsourcing is dominating the industry, taking over half its shares. However, that’s not that surprising, considering that:
2. More than 94% of companies use some sort of IT outsourcing service.
(Source: WhatstheBigData.com)
Whether it is software development, customer support or everything in-between, most businesses globally have utilized the benefits of this business strategy. We’re talking companies from all niches and sizes.
For example:
3. Around 37% of small businesses are outsourcing IT services and accounting.
(Source: WhatstheBigData.com)
Having someone take over the software part, while you’re growing your small business can help you a lot in the long run.
But even established firms do it!
4. 92% of the companies in the G2000 list utilize IT outsourcing.
(Source: Demandsage)
Forbes’ Global 2000 List includes names like Toyota, Nestle, Apple, etc. If such big and varied companies can employ the advantages of IT outsourcing, so can you!
5. Most companies outsource 37% of IT functions.
(Source: Medium)
Don’t worry, though – it won’t cost you your job. That’s just a popular myth.
6. 9 out of 10 high-tech startups have chosen to outsource their work overseas.
(Source: Demandsage)
A huge plus of outsourcing is that it enables you to tap into a huge pool of IT talent. So, it doesn’t really matter if you need niche expertise or something more basic. You’ll surely find it!
7. 48% of UK companies offshore business functions.
(Source: Demandsage)
Those can include IT, accounting, marketing, or more. Clearly, businesses in the United Kingdom have been choosing to outsource more and more functions recently.
In fact:
8. The UK has seen 41% increase in work outsourcing since the pandemic.
(Source: Demandsage)
That’s not a number you can simply ignore. Note that IT outsourcing stats show that the percentage is growing steadily.
But that about the revenue?
IT Outsourcing Revenue Statistics
As Swedish singer and songwriter Meja once said, “It’s all ‘bout the money.”
Numbers do speak louder than words, so we come prepared:
9. Experts predict that IT outsourcing market revenue will reach $541.10bn in 2024.
(Source: Statista)
Which is simply mind-blowing!
But that’s not all:
10. The projected global outsourcing annual growth rate (CAGR 2024-2029) is 8.48%.
(Source: Statista)
IT outsourcing certainly is taking the world by storm. The numbers just keep growing and growing.
11. As a result of the annual growth rate, the market volume will reach $812.70bn by 2029.
(Source: Statista)
Safe to say, this business strategy ain’t going anywhere. What better time to jump on that bandwagon than right now?
12. The average Spend per Employee in IT outsourcing will hit US$152.00 in 2024.
(Source: Statista)
Lots is being invested in this industry. So, you can be sure you’ll be getting the most suitable service possible. If you’re a skilled professional, your chances of working a cool project have just doubled!
13. On average, tech teams spend 13.6% of their budget for outsourcing.
(Source: Medium)
That’s quite a big share. This only serves to show that IT outsourcing really is worth it.
14. The United States will generate $197.30bn in revenue in 2024.
(Source: Statista)
Comparing globally, this means they’ll take the first place. Which is not really surprising, given the size of the US.
Now.
Let’s answer another burning question:
What is the future of IT outsourcing?
IT Outsourcing Trends
This strategy is definitely here to stay. And IT outsourcing stats confirm it:
15. 52% of businesses consider outsourcing one or more business processes.
(Source: Demandsage)
Nearshoring is becoming more and more popular, whether it’s for software development or any other business tasks. And once you’ve tested it, you’ll fully understand the following stat:
16. 83% of small businesses plan to maintain or even increase their spending on outsourced services.
(Source: Demandsage)
Outsourcing projects enabes them to focus more on attracting new clients, creating new products, and building their brand.
17. More than 75% of officials are interested in outsourcing tech-related services.
(Source: Medium)
Those include software development, IT infrastructure, and cybersecurity. Obviously, the demand for IT outsourcing will only grow.
So, good news for all businesses:
18. Thanks to cloud technology, there will be more outsourcing opportunities for 90% of the companies globally.
(Source: Medium)
The world is your oyster, basically. Whether you’re looking for IT talent or offering your services, you’ll see many more doors opening for you.
19. 45% of agencies will invest more in outsourcing post the pandemic.
(Source: Medium)
They will focus on finding expertise that’s not available in house.
Which brings us to our next question:
Why Are Companies Outsourcing IT Tasks?
Expertise is an obvious one, especially for smaller companies.
20. 26% of small businesses use outsourcing as a way to get help from an expert.
(Source: Demandsage)
An enterprise is more likely to have various specialists on-site. Medium and small-sized firms, however, can find what they need via outsourcing.
21. 72% of companies utilize IT outsourcing as a way to reduce their costs.
(Source: Gitnux)
Yes, IT outsourcing really does help you save money! Most businesses have already figured it out, so don’t hesitate to join the club.
22. Roughly 24% of businesses use outsourcing to improve service quality.
(Source: Gitnux)
Businesses are spending more and more on IT outsourcing, with a notable demand for highly skilled professionals.
23. 59% of companies appreciate that IT outsourcing enables them to quickly implement new technologies.
(Source: Gitnux)
IT outsourcing can improve both efficiency and quality. You really have nothing to lose and so much to gain.
24. 81% of customers are satisfied with the outsourced IT services they used.
(Source: Gitnux)
Whatever the exact type of service, most customers are happy they chose to outsource. We all know how hard it is to achieve such a high percentage of customer satisfaction, so that sure is impressive.
25. 78% of companies report having great experience with their outsourcing partners.
(Source: Medium)
This only serves to show that choosing your outsourcing partner is crucial.
Don’t know where to start?
Contact Expert Allies today and we’ll help!
Wrap Up
IT outsourcing continues to grow in 2024 and one thing is becoming clear:
There’s no stopping it.
More and more companies are investing in it, which leads to numerous job openings. So, whether you’re a business owner or a skilled professional, there is something for you to gain.
And if you need a helping hand, we’ll be your allies for this journey!
Sources:
FAQ
What is the future of outsourcing?
The future of outsourcing is extremely bright. IT outsourcing statistics show that more and more companies are choosing to invest in this business strategy. The same goes for marketing, design, accounting, etc. services.
Is outsourcing increasing or decreasing?
Outsourcing is definitely increasing. That’s because it has many benefits – cost reduction, access to a varied pool of skills, improved scalability, and more. In fact, 45% of agencies aim to increase outsourcing in the coming years.
What industry outsources the most?
The IT industry outsources the most. It holds over 55% of the shares in the industry, which is simply mind-blowing.