As the world of business changes, so does how companies operate. We’ve seen a rise in outsourcing in recent years as businesses strive to cut costs and improve efficiency.
There’s no wonder why. Outsourcing can provide many benefits. It includes better access to skilled labor at a lower cost, increased flexibility, better scalability, etc.
But what does the future hold for Outsourcing? In this article, we’ll look at some of the vital outsourcing statistics for 2022. It will help you understand the current trends and where the industry is heading.
1. 43% More Effective: Outsourced Lead Generation vs In-House
Many companies find that outsourcing is the easiest way to succeed in lead generation. Generating leads is difficult.
Often marketing campaigns fail due to the lack of knowledge about marketing rules and resources to generate high-quality leads.
You should consider outsourcing lead generation when:
- You don’t have enough resources to have a dedicated department.
- Your lead generation needs are focused on cold calling and booking appointments.
- You have a streamlined process for qualifying leads.
- You have the resources to create a separate process for lead generation.
This is where outsourced sales support plays a significant role. They can mitigate the shortcomings as experts in sales and lead creation. This will result in better-quality leads for you.
The ongoing Covid-19 pandemic lockdown has significantly shifted the outsourcing industry. Many companies are attempting to reduce costs by outsourcing services instead of doing it in-house. This practice is helping them focus on their other business operations while garnering new customers.
2. Outsourcing Market Hit $92.5 Billion: Pandemic Impact
Revenue from outsourcing has been fluctuating since 2012. In 2014, revenue from the global outsourced market was $104.6 billion. However, it fell to $88.9 billion the next year. While the market has a volatile nature, the COVID-19 pandemic has further affected it.
The pandemic has significantly impacted the revenue as many companies are struggling to stay afloat. Hence, they are forced to cancel or postpone their outsourcing contracts.
3. 300,000 Workers Lose Their Jobs Each Year Due To Outsourcing
According to these numbers, most employees see Outsourcing as a foe. When there is an economic crisis or pandemic, people’s attitudes become especially sour. We’ve experienced the second-largest recession in history, and the global viral epidemic is ongoing.
It is no surprise that during the peak of the Great Recession in 2008, the outsourcing industry was partly blamed for making things worse.
4. `93% of Organizations Outsource Cloud Services to Improve Efficiency
Cloud technology is helping businesses become more efficient. Companies can now offer new products and services much more efficiently. Thus, they are able to compete in both new and established markets.
This shows that many businesses see the cloud as a way to be more innovative and competitive. So, they are willing to pay more for their operations with the cloud. As a result, they are able to cut many expenses by reducing staff on-premise.
5. Cloud Technology Outsourcing: Data Security Concerns for 68% of Companies
Cloud technology is disrupting the global outsourcing sector. Despite its many advantages, outsourcing is causing many problems like data security and legal compliance.
Additionally, many outsourcing businesses are concerned about the stability and dependency of cloud-based services. Furthermore, intellectual property theft is another pressing concern surrounding outsourcing.
6. 44% of Chief Intelligence Officers Prefer Outsourcing Suppliers
Over the last few decades, the IT sector has migrated to outsourced suppliers. In fact, about 64% of outsourced services for the IT sector are for software development.
Furthermore, statistics have found that 51% of businesses prefer to outsource for software application maintenance. At the same time, 40% of companies outsource their data centers.
7. Saving Money By Outsourcing IT Capabilities
Commonly businesses outsource their IT functions to free up resources so they can focus on their core business. Although saving money is not the primary goal, it is still a critical consideration.
45% of businesses that outsource IT responsibilities say that their main goal for outsourcing is to save money. 46% feel that it allows them access to skillsets they don’t have in-house.
8. 71% of Executives Outsourced Financial Services
Businesses like financial services, retail, and transportation companies outsource most of their official functions.
According to employment outsourcing statistics, pharmaceutical businesses keep the top spot with approximately 82% of the outsourcing operations.
9. 24% of Small Businesses Outsource to Improve Efficiency
Small business owners must be efficient to compete with larger companies. This means they can’t afford to have a dedicated staff for many business processes. Therefore, they are forced to either use their limited resources to perform critical operations or outsource them.
Another popular reason (18%) that small companies outsource is to get access to experts. According to US outsourcing data, 52% of small firms will continue outsourcing after COVID-19.
10. 29% of Smaller Businesses Outsource for Sales Growth
A majority of smaller companies are less likely to spend money on outsourcing agencies than larger companies. It is especially applicable to sales. Instead of outsourcing sales teams, many companies use freelance or gig workers for lead capturing or CRM.
But, this doesn’t mean that outsourcing can’t be useful for small businesses. In fact, it can help them to grow. Over a quarter of small businesses outsource sales capabilities to scale their operation quickly.
11. Global CRM Outsourcing Market to Hit US$10.9 Billion by 2027
Many businesses are outsourcing Customer Relationship Management (CRM) nowadays. It is owing to the advantages of outsourcing CRM capabilities that include reduced business risks, higher competitive edge, optimized sales processes, lower operating costs, and automatic data entry.
Currently, the global CRM outsourcing market is estimated at US$8.1 billion. It is likely to grow to US$10.9 billion, at a CAGR of 4.3% by 2027.
Key Takeaway
As we can see, there are many reasons why businesses outsource. It can be a great way to save money, improve efficiency, and grow your business. But, it’s essential to consider all the risks before making a decision. Therefore, companies must do proper research and understand the pros and cons before outsourcing.
