Stretching your team of developers with loads of responsibilities can affect their productivity, morale, employee retention, and quality of work. But, outsourcing software development to a third-party team helps free up more time for the in-house team to focus on their specialization areas. This ensures that you are able to take the product into the market faster. Software development outsourcing has become a cornerstone in the tech industry, with its influence reaching far beyond. From small startups to multinational corporations, businesses across the spectrum are harnessing the power of outsourcing to optimize costs, access global talent, and accelerate time-to-market.

Most of the time, help desk workers are outsourced because they don’t need to be in the office to do their jobs properly. That is why it’s no wonder that nearly half of banking help desk specialists are outsourced. What’s more, the outsourcing statistics graph shows over a third of jobs in payroll and benefits administration are outsourced for pretty much the same reason. Hiring help desk workers from a service provider is one of the services that helped establish the IT outsourcing industry. However, help desk outsourcing trends suggest that help desk outsourcing is not that frequent in the IT sector. As a matter of fact, barely a fifth of IT companies employ these positions from a third party.

Challenges And Risks In Software Development Outsourcing 👁‍🗨

Considering that this market size was $3 billion a few years ago, we can imagine how high this increase will be. Hackers are now even attacking governmental websites, stealing important and confidential data. Adding AI to your usual workflow can give you more free time than was spent on simpler but time-consuming routine tasks. It will also help stores sort and process orders automatically with enhanced precision and shorter periods. Moreover, AI and IoT have proven to give great results in marketing and especially in online stores.

When it comes to business process outsourcing in the US alone, it accounts for approximately 85% of the total $92.5 billion that is spent on BPO services globally on average. This means that small businesses outsource to a much lesser degree and spend less money when compared to large companies and global corporations. A report on the global market for outsourcing has it outsourcing trends found that businesses in the United States are outsourcing approximately 68% of their required workforce. Other global outsourcing companies include Accenture, Deloitte, and Synnex. Outsourcing is a cost-effective and highly efficient way for companies around the world to gain access to more skills, technology, or any expertise they need in a fairly short time.

Outsourcing Trends — Stats, Facts, and Projections

This means that for a large number of businesses, the main motivation for this move is not to lower costs by cutting jobs, but to be more competitive and increase innovation. An experienced software outsourcing team like Apiumhub has robust workflow processes in place to ensure that progress is monitored, milestones are met and projects are completed on time. In reality, Software Development Outsourcing services are on-demand and rapidly expanded to $66B’ worth globally – according to Statista.

Other than that, time tracking (24%), insurance services (19%), and performance management (10%) are the top services provided. Some organizations also handle payroll, outsourcing statistics indicate. According to the Australian outsourcing statistics, the number of BPOs in the country increased by 0.7% YoY. The highest costs for the BPO industry Down Under are wages (50.1%), purchases (13.4%), and rent and utilities (2%). Information technology outsourcing is intertwined with BPO, especially since many business processes are also based on tech.

Current statistics on this topic

It is almost impossible for one company to manage all the aspects of the product supply chain successfully. If a company tries to handle all the functions, some areas may fall back while others will prosper. The first step involves posting an application or browsing potential candidates on LinkedIn. Then, the next step is shortlisting the best candidates and arranging for their interviews. Organizing interviews means managing schedules to find the right slot, which could further delay the process.

software outsourcing statistics

AI is slowly but steadily taking more and more space in IT development. Cybersecurity has become a major concern in 2021, and more companies are trying to invest in protecting sensitive data. IT corporations, facing a skyrocketing demand for digital services, were forced to change their workflow during the pandemic. Today, the IT outsourcing field keeps its growth and gains more popularity. It brings a lot of fundamental transformations to companies all over the world.

Up to 85% of logistics leaders are expected to see an increase in the outsourcing budget

However, the outsourcing partner should be capable and qualified to handle the business tasks as required. Furthermore, programs and costs will always be under control and project teams will operate on schedule and according to process. As of 2023, the percentage of corporate data stored in the cloud has continued to increase, with 60% of all data now being stored remotely. As we enter the year 2023, the AI industry continues to make significant advancements, and experts predict that this trend will continue for the next several years. With an annual growth rate of 37.3% projected from 2023 to 2030, the AI market is poised to expand rapidly, transforming industries and revolutionizing the way we live and work. Outsourcing IT-related business processes is one of the best strategic ways to handle tasks that are traditionally handled by internal staff.

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  • Outsourcing statistics for 2021 show that application development is one of the most frequently outsourced IT functions.
  • Annualized revenue is based on active industry-wide contracts with a total contract value over 25 million U.S. dollars.
  • 51% of workers with postgraduate degrees perform some kind of freelance work — many in the skilled services category.
  • IT security and data center operations saw the biggest reductions in outsourcing three years ago, with a 6% decrease compared to the year before.
  • Once the COVID19 pandemic began, many companies around the globe saw the rising need to improve and optimize their workplace, as well as bring in talent and new skills.

Due to the large talent pool available and the high-cost savings, India is still dominating the outsourcing market. According to a review of multiple studies done in 2021, India was the top choice for outsourcing offshore for companies around the world. When it comes to the United Kingdom, the most popular market for outsourcing is London, which comes as no surprise.

IT Outsourcing Industry Statistics: Market Size, Trends and Forecasts for 2022 and beyond

Let’s inspect some outsourcing trends and IT outsourcing statistics in 2021. We hope some of them will be useful for you and your company to make working processes better and easier. Approximately one million Filipinos work outsourced jobs, an industry that’s worth close to $27 million and makes up almost a tenth of the country’s economy.

software outsourcing statistics

That is not all the outsourcing software development statistics we have for you since there are many more exciting trends shaping the market at all times. According to numerous outsourcing statistics, 59% of companies use it to cut costs. What’s more, 57% of companies feel outsourcing lets them focus on their core business, and 47% use it to solve capacity problems.

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In 2014, when the total revenue reached the highest point, BPO amounted to $76.1 billion, while ITO garnered $28.5 billion. The high demand for outsourcing help will make such collaborations more transparent and interpersonal. Ukraine, Poland, and Belarus are already becoming the appealing hubs of experienced offshore development teams to cooperate with. The Gartner report claims that 85% of clients will be ordering items or services with no human contact. 80% of customers prefer companies with personalized client experience to those that don’t offer it.