The Most 10 Interesting Outsourcing Facts & Statistics

• Technology – IT jobs are mainly sent to China and India because the wages are much lower and the skills similar
• Call centers – these jobs seem to be coming up since wages in India are catching up to those in the United States
• Human resources - outsourcing human resources jobs helps reduce health benefit plans, workers compensation insurance, and retirement plans by pooling thousands of businesses
• Manufacturing

Despite the rising volume of outsourced jobs in the US, foreign companies outsource jobs to the United States as well.

5. Manufacturers outsource an average of 70% to 80% of their finished products

The need to cut in labor costs has pushed even manufacturing companies to outsource some manufacturing processes by hiring outside your company to assemble parts or build an entire product. Business owners need to evaluate the costs required for internal processes before making an outsourcing decision. A company struggling with redundant activities or processes might experience little to no profitable growth. Before choosing any company to satisfy your needs, it is essential to look into key suppliers and keep the following things in mind:

• Outsource to a company with almost similar business philosophies and management styles{:.mb-md-5}
• Focus on the best services before prices

China is an example of one of the most low-cost manufacturing regions where most manufacturing companies, entrepreneurs, and retailers outsource their services.

6. Many companies are seeking to automate their processes with Robotic Process Automation (RPA)

The rapid rise of robotic process automation is rumored to lead to the death of business process outsourcing. It is natural to wonder if robots will soon be taking over the work, so many companies currently outsource their workload to BPO firms. RPA uses rule-based algorithms to automate specified processes on enterprise software and mainframe systems.

However, this evolution will look more like many evolutions in technology we have had before. Many inside the RPA industry see this as an opportunity rather than a threat to BPO. Automation of processes in an organization is mainly beneficial to business owners. Still, this technology benefits employees in the following ways:

• Employees get to focus on more complex tasks or involve themselves in new projects by reducing repetitive and tedious tasks that slow them down
• Improved accuracy through the elimination of errors that may be unavoidable in manual performance
• Improving and simplifying processes
• RPAs can work 24/7 hence increasing quantity and speed of work

RPA market revenues are expected to reach $2.9 billion worldwide by the end of 2020.

8. More than 40% of help desk positions in the banking industry are outsourced

Help desk services require providing consumers with impeccable technical support in their time of need. Some organizations’ budget does not allow an internal help desk solution to support customers. It is the main reason why help desk outsourcing is considered as a solution.

55% of customers are likely to get attracted to excellent customer service, with 85% ready to pay more for an upgraded help desk experience. It shows how important it is to provide satisfying customer support services. There are several mind-blowing benefits that organizations enjoy from help desk outsourcing.

• Internal support teams can be very effective, but such teams can’t provide 24/7 help desk support. Outsourcing offers a team of experts working in different shifts.
• Internal support staff may lack the experience to bring all calls to a resolution. Outsourcing gives you experts with better call management skills who deliver excellent solutions to your customers.
• With the latest technologies, it has become easier to cut down response time by immediate dispatch.
• Outsourcing help desk services reduce costs of labor, technologies, tools, and customer losses.

9. Freelancers represents 40% of the workforce in 2020

From a Forbes research, it shows that the current representation of freelancers within the workforce is between 35% and 40%. The recent numbers in the freelancing world also show a spike in revenue. The reason for this is that freelancing is more appealing to employees that prefer a flexible working schedule with more freedom for creativity.

Working on specific projects you like and also setting your hours do not only give you freedom but the time and ability to maximize your skills and provide outstanding services. Outsourcing freelancers are very common because of the quality of work they bring. Since competition among them is also high, it is possible to get the right freelancer at a very affordable rate.

There are freelancing platforms that provide freelancers with approximately 70% of freelancing jobs. Companies use these platforms to outsource the most affordable freelancers for the best quality work. They even offer features for interviews before hiring.

10. Business Process Outsourcing (BPO) expected to hit over $400 billion by 2027

Today, industries such as health, e-commerce, tech, and many others rely on BPOs to help streamline their internal processes. Most BPO activities that get contracted externally are in-house business functions such as human resources or front office needs. Both big and small companies, about 59%, are gradually embracing outsourcing as a cost-cutting tool. In return, the BPO industry continues to grow immensely.

BPO business analytics provides the forecast for the current and expected industry trends. This data comes from observation, evaluation, and analysis of current business trends, technologies, and other essential factors that impact the industry’s revenue.

Even as technology continues to get rid of some business opportunities through automation, new jobs are being needed. The IT industry, which is the most outsourced industry, requires employees and freelancers to keep up to date with the current trends in technology to provide high-quality services. Partnerships between companies and outsourcing companies, both locally and internationally, are also on the rise.

The outsourcing industry is expected to provide employment opportunities to millions of individuals in the coming years. More jobs are being transformed to follow the technology advances, hence, it is a high time for people to adopt the trend of remote contract work and employment.