Global outsourcing is a business practice where a company decides to hire a third party to deal with some of its services or job functions. Companies can decide to outsource a small part of their operations (for example, QA testing), or their entire divisions (for example, IT).
Depending on where it takes place, outsourcing can be onshore (within the country), nearshore (to a nearby country), or offshore (to a remote country).
The COVID-19 pandemic has accelerated the idea of working remotely and technological advancements is one of the reasons why the outsourcing industry expands this 2022.
Before you dive into 5 most outsourced tasks in 2022, let check some most eye-opening outsourcing statistics:
- Global spending on outsourcing could hit more than $731 billion in 2023 (IT outsourcing spending will be $519 billion, Business process outsourcing spending will increase to $212 billion)
- 80% of small businesses plan to outsource at least some of their work in 2022 while 66% of businesses in the United States outsource at least one department.
- Roughly 300,000 U.S. jobs are outsourced each year.
- Information technology is the leading industry for outsourcing with 13.6% of the average department budget dedicated to outsourced tasks and about 37% of IT tasks are outsourced.
- 92% of G2000 companies use IT outsourcing
- According to research from Commit, software development outsourcing will increase by 70% between 2022 and 2023.
According to Time Doctor, there are 5 most outsourced tasks in 2022.
1. Information Technology
The IT outsourcing industry is growing at a CAGR of 8.93% and will be worth a market volume of $551,956.3 million by 2026.
Of all the IT services, most companies engage in RPA and software outsourcing. In fact, the RPA market will be approximately $32.7 billion by the end of 2030.
Furthermore, Latin America is one of the most rapidly-growing regions for software outsourcing. Companies such as Amazon, Google, Uber, and Microsoft are all outsourcing software development to Latin America.
Other IT outsourcing trends include: Implementation of digital transformation, Mobile app support and management, Search engine optimization, Data center management.
Commonly-outsourced administrative activities include telephone services, bookkeeping, event management, payroll management, and more.
Companies also hire virtual assistants (independent contractors who work remotely on tasks like scheduling appointments,completing administrative activities, and more).
According to Technavio, the global virtual assistant market size will grow by USD 4.12 billion, at a CAGR of 11.79% between 2021-2025.
3. Business Process Outsourcing (BPO)
Generally, companies outsource a business process such as IT services and human resource management to an external BPO company.
BPO has become the ideal cost-effective solution for companies looking to grow their business. BPO service providers help companies bridge gaps within their structure and cover additional technical or non-technical business functions.
The BPO solutions industry is one of the fastest-growing industries in the world, with a CAGR of 9.1% from 2022 to 2030 (Grand View Research 2022).
4. Blockchain development
Blockchain development outsourcing is the process of finding an external third-party provider to take on the development and management of your blockchain technology.
Blockchain development outsourcing can be the ideal cost saving solution when a business needs to develop a blockchain product quickly.
The global blockchain technology market size was $5.92 billion in 2022. The market is also expected to grow at a CAGR of 85.9% from 2022 to 2030
5. Legal process outsourcing
According to American Lawyer Media research, 93% of legal departments rely on several legal service providers to handle a wide array of tasks.
Outsourcing can differentiate your legal department and improve capacity without increasing overhead. It enables companies to delegate time-consuming and mundane tasks such as document review and contract drafting to an outsourcing service provider.
In house legal teams can then focus on more meaningful work such as mitigating legal risks by designing and implementing suitable company policies and procedures.
The global legal process outsourcing market size was USD 10.77 billion in 2022. The market will grow at a compound annual growth rate (CAGR) of 30.9% from 2022 to 2030.
From these statistics, outsourcing is used by companies of all sizes and across all industries. Organizations spend hundreds of billions of dollars every year offloading part of their workflows to outside firms. IT outsourcing has been and will continue to be a trend for many years due to the benefits it brings. (Visit Outsourcing & In housing, which is better?). Being able to select the right partner who has the experience, build things in the budget and meet deadlines under pressure would be very effective in the long term.
If you are finding a trustworthy partner to provide high quality software development or to consult about your project, let’s talk to SETA experts via firstname.lastname@example.org.
SETA International is one of the leading software solution providers in Vietnam providing one-stop software development services with high quality, efficiency and competitive cost; and being trusted by international clients for the past 14 years like Amazon, Pfizer, American Airline. We provide IT consultation and IT outsourcing services for AI, VR/AR, IoT, mobile, web and cloud.