Global markets and improvements in technology have changed the way businesses work. For many, staying competitive means capitalizing on the world being a smaller, more tech-savvy place and enjoying the benefits of outsourcing.
Hiring an overseas workforce to outsource certain business functions can lead to lower overheads, increased growth and greater focus and service quality. Combined, these benefits mean a happier-looking bottom line. On paper, it all sounds great but for a business sitting on the fence about whether to offshore, promises and benefits that “sound great” aren’t enough.
You need evidence and you’ve come to the right place - our ultimate list of outsourcing statistics for 2023.
For more than 20 years, renowned professional services firm Deloitte has been conducting surveys to understand the evolution of outsourcing and provide insight into the issues and trends affecting both providers and clients. In the latest incarnation of the survey report – Navigating Talent, Technology and New Ways to Outsource1 – the company revealed that the battle for talent has reached an unprecedented intensity and the rules of outsourcing are changing as third-party models evolve to enhance business and IT processes with AI and data insights.
Key findings included:
What remains clear, as it did back in Deloitte’s 2021 Global Shared Services and Outsourcing Survey Report2, is that outsourcing providers need to continue to evolve and adapt to rapidly changing conditions as they seek to provide value-added services and high-impact business outcomes for their clients.
In December 2022, Clutch asked 517 small business leaders in the U.S. to reflect on their top business objectives for the following year and the role outsourcing would play in filling any gaps3. Despite talk of a looming recession, the survey found a sense of optimism continues to prevail and the majority of small businesses consider outsourcing providers an effective strategy to remain agile and fill critical skills gaps.
The survey also confirmed what many observers already know. When it comes to reasons for outsourcing, money continues to talk.
With businesses able to save up to 70% on labor costs by using an offshore provider, it is little wonder reducing expenses remains the top motivation for outsourcing business tasks. In the words of one survey respondent who has collaborated with an outsourced copywriting agency for four years: “Outsourced providers chip in with expertise that helps to plug in what is lacking in-house, ensuring that small businesses can still compete even with a limited budget3.”
The survey also revealed that despite talk of a boom in the gig economy, most small businesses still prefer to use professional outsourcing providers. 52% of respondents regularly use services provided by a professional firm or agency, preferring the structure and safety that comes with partnering with a known entity.
“Freelancers need more management and often don’t have systems in place that fit all or most companies so the business owners end up having to manage the freelancers,” one eCommerce shop owner told Clutch. “Agencies typically have an organizational structure that allows feedback to a manager who then manages the specialist actually performing the work for the business.”
Outsourcing has grown from a smart idea a few decades to a multibillion-dollar industry that shows no signs of slowing down. In a world where businesses need more flexibility than ever in accessing talent, outsourcing is becoming a more powerful sector by the year.
Some business functions and industry sectors lend themselves better to outsourcing than others. This boils down to practical issues around setup and management, with Clutch finding that small businesses in 2023 are looking for new outsourced providers in marketing (27%), IT services (22%), and design (21%)9.
Other statistical insights include:
When it comes to outsourcing, the world has never been smaller. Technology means businesses can now partner with offshore providers wherever there is strong connectivity, while the remote work trend has instilled a new sense of confidence in businesses looking for support outside their four walls.
Consider these statistics when debating where to direct your outsourcing budgets.
As highlighted above, the Global Services Location Index has ranked the Philippines an industry leader in outsourcing. With excellent communication skills in both oral and written English, the nation offers a balanced package of excellent customer service with reduced labor costs. More importantly, the government is very supportive of the offshoring industry, with a nationwide focus on infrastructure and telecommunications investments, especially in the main cities.
Statistically speaking, there is a lot to like about the Philippines:
In an ever-changing environment, it is essential that businesses stay abreast of any opportunities to reduce costs, increase efficiencies and improve productivity. Outsourcing ticks all those boxes, hence why the industry continues to grow at an exceptional rate. Statistics and numbers only tell part of the story though. Take the time to review individual case studies, seek insights from businesses that have used outsourcing and reach out to providers to find out how they can improve your organization for the better.
Take the next step on your outsourcing journey by exploring our ‘Case Study Portfolio - Real Challenges, Our Solutions’, which showcases 12 in-depth, real-life examples of how offshoring in the Philippines has reaped rewards for organizations in industries as diverse as healthcare, eCommerce, insurance and tourism.
Updated March 2023
 Global Outsourcing Survey 2022 | Deloitte US
 2021 Global Shared Services and Outsourcing Survey Report (deloitte.com)
 Small Business Outsourcing Primed to Boom in 2023 | Clutch.co
 Business Process Outsourcing Market Worth $525.2 Billion By 2030 (grandviewresearch.com)
 PowerPoint Presentation (isg-one.com)
 What You Need to Know About Outsourcing: Which Outsource Service is Right for You? - Aptude, LLC. A New Era Technology Company
 ISG Research - View (isg-one.com)
 Small Business Outsourcing Primed to Boom in 2023 | Clutch.co
 Syntax IT Trends Benchmark Report (2021): Report
 Computer Economics Avasant Research - Computer Economics by Avasant
 Content writing | Exploding Topics
 The 2021 Kearney Global Services Location Index - Kearney
 Outsourcing to the Philippines - the state of play (matchboard.com.au)
 Outsourcing Statistics 2022: In the US and Globally | TeamStage
 China: new employees number in service outsourcing industry | Statista
 Seven in ten British businesses outsource to third parties | YouGov
 Doing business in the Philippines 2019 | Deloitte Philippines | Financial Advisory
 IT and Business Process Association of the Philippines (ibpap.org)
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