What industries outsource the most and why? Discover why outsourcing is so popular in the IT industry, why companies are happy to be hooked on nearshoring the creation of their digital products, and why the Americas are #1 for outsourcing.
What industries outsource the most to stay ahead?
A shifting global marketplace and the worldwide evolution towards digital is changing the way businesses operate – creating a boom in IT outsourcing services.
The benefits of outsourcing, whereby companies hire external professionals to undertake projects rather than doing so internally, and the nearshore model, whereby those companies outsource to professionals in a nearby country, are well-documented.
Both strategies help companies realize their projects and ideas in a fast, efficient, and cost-effective approach that takes advantage of agile processes and emerging talent.
Here we reveal what industries outsource the most and why finding the right IT outsourcing provider is vital for competitive businesses.
Which industries are most in-demand for outsourcing?
IT services are number one for outsourcing and nearshoring
Outsourcing in the international tech industry is expanding, with some studies predicting the industry will grow by US $98bn by 2024.
Rapid advances in technology and a global increase in cloud computing are two reasons why companies outsource IT services, as well as continued increases in cellphone use.
In terms of what industries outsource the most, tech is by far the most popular outsourced service, with a 54% market share, according to a report by professional services network Deloitte.
This is followed by finance at 44%, payroll at 32% and customer services, at 22%.
Why do businesses seek business process outsourcing providers?
Standardization and efficiency of processes is the number one reason companies turn to outsourcing. They are keen to reap the benefits, in the case of tech, of working with specialist software developers.
Businesses also cite an acceleration in their “digital agenda”, the need to drive business value and increase capabilities, reducing costs, and overall business strategy, as their top reasons for outsourcing.
Clutch surveyed 500 small businesses in the US and discovered that smaller companies outsource to save time and improve efficiency, support business growth and scalability, access flexible resources and, of course, to utilize offshore expertise.
The biggest benefits of outsourcing, in general, and nearshoring, in particular, are greater efficiency gains and increased staff support, which ensures companies can scale, remain competitive and improve their offerings and services.
Which outsourced processes have the most impact?
Organizations are becoming increasingly reliant on outsourced services because they are so satisfied with the service they provide, according to market research firm Fact.MR.
Companies with the most positive outcomes include businesses that incorporate Robotic Process Automation (RPA) and cloud integration into their outsourced solutions, because these solutions tend to have the biggest impact on the bottom line.IT and accounting are some of the most commonly outsourced processes, outsourced by 37% of the businesses surveyed by Clutch, followed by digital marketing (34%), development (28%), human resources (24%), and customer support (24%).
What are the advantages of nearshore vs offshore?
Nearshoring and offshoring are the two of the most popular models for businesses seeking to outsource services in the IT industry.
Offshoring happens when projects are outsourced to experts in another country. Nearshoring happens when projects are deliberately offshored to experts in a near or neighboring country, to reap the benefits of proximity.
Proximity to outsourced staff and experts helps businesses cut costs, because of reductions in travel time, and improve communication and oversight, because teams operate in the same or similar time zone and possess greater cultural understanding.
It also helps businesses take advantage of new and emerging IT talent.
You may be interested in: The top 5 benefits of nearshoring in the IT industry
Which countries or regions are the most popular for outsourcing?
North and South America, also known as the Americas, is the most popular destination for outsourcing, according to research conducted by KPMG.
The region has achieved a 42% market share.
This is followed by Europe, the Middle East and Africa, which together have achieved 35%, and Asia and Oceania at 23%.
What industries outsource the most, and why?
Ask anyone what industries outsource the most and they’ll tell you that IT outsourcing is booming.
Companies are enjoying reduced costs, time savings, increased efficiency, and support for business growth and scalability, among others.
Nearshoring, in particular, helps businesses accelerate their digital agenda, drive value, increase capabilities, standardize processes and consolidate their business strategy.
To find out how Ceiba’s services can transform your company today, contact us.
You may also be interested in:
How nearshoring can insulate your company from the economic recession
Why are businesses seeking the outsourcing benefits of the IT industry?
Sources
https://www.marketresearch.com/Infiniti-Research-Limited-v2680/Global-Outsourcing-32329223/
https://www.microsourcing.com/learn/blog/the-ultimate-list-of-outsourcing-statistics/
https://clutch.co/bpo/resources/benefits-of-outsourcing
