Outsourcing is a common practice among businesses to improve their efficiency and reduce costs. It helps organizations streamline their operations and optimize their business processes. 

Today approximately 37% of IT services are being outsourced to third-party service providers. Businesses rely on their external service providers for quality services at reduced costs.

Maintaining an in-house IT team is a costly endeavor. Outsourcing allows us to avoid the expense of hiring costly IT professionals while still ensuring high-quality work through external service providers.

In this blog, we will discuss some facts and statistics about IT services. We will also explore some benefits of outsourcing services to external service providers. 

What Is IT Outsourcing? 

When an organization outsources its IT (Information Technology) services to an external service provider it is known as IT outsourcing. An IT outsourcing company moves the software development or other IT-related tasks outside of the in-house structure.

The third-party service provider is completely responsible for managing and maintaining IT services for the client organization. The client organization is completely dependent on the service provider for efficient IT services.

When an organization outsource IT services to an external service provider, it lowers its dependency on in-house teams. It also ensures high standards of service quality. This is why most organizations prefer to outsource their IT services to an external service provider. 

Outsourced IT services for small businesses are extremely beneficial because of cost-saving benefits. 

Outsourcing Facts And Statistics 

Now let us look at certain facts and statistics about IT outsourcing. 

1. Relationship with an outsourcing partner

According to a survey conducted by Deloitte in 2022, 78% of businesses are satisfied with their outsourcing outcomes. About 42% of companies that outsource their work are located in North and South America. Middle East, Europe, and Africa together constitute 35%. Oceania and Asia constitute the remaining 23%.

So these were the statistics about which region contributes how much to the outsourcing market.

2. Why Do Companies Outsource?

Now let us look at some statistics about for what purpose companies outsource their services to external service providers. 

• 59% of businesses outsource to cut or manage costs.
• 47% outsource because they don’t have enough office space to accommodate additional staff.
• 57% of businesses outsource their services to save time to focus on core business activities.
• 31% of organizations outsource to improve their servie quality.
• 28% of businesses outsource to take guidance from talented professionals.

3. Global Outsourcing Industry 

Now let us explore some global statistics about IT outsourcing.

• As per Statista, the outsourcing industry’s global market size has increased from $45.6 to $85.6 from 2000 to 2018. 

• Another study says that 65% of organizations would prefer to partner with the same organization again.

• Out of all the IT services, application development is one of the most outsourced services. And 37% of businesses intend to increase the volume of work they outsource. 

• In terms of value, the United States accounted for about 84.2% of outsourcing transactions. 

4. Outsourcing In India 

According to NASSCOM, the IT-BPO industry generated a revenue of $154 billion in the year 2017. In the next five years, 40% of the Indian workforce is expected to upskill themselves to meet advanced requirements. 

5. Most Popular Outsourcing Services 

Now let us look at some of the most popular outsourcing IT services.

• Mobile application development
• Datacenter operations
• Database Administration
• Mobile application maintenance
• System support
• Disaster recovery
• Web operations
• Network operations
• Web hosting 

6. Some More Facts About Outsourcing 

• India is considered one of the best outsourcing countries across nations. It is so because of cheaper service and availability of talented professionals.
• In the year 2018, the global revenue for the IT outsourcing market reached 62 billion US dollars.
• India holds 65% of the market share for the outsourcing industry. 
• Forrester Research projects that global business for hardware maintenance and IT outsourcing will reach $503 billion in 2017.

7. Popular Outsourcing Destinations

List of countries that are popular for outsourcing IT services. These countries are popular for outsourcing because of service quality, skill, and cost-saving benefits. 

• India
• China
• Vietnam
• Malaysia
• Indonesia
• Chile
• Colombia
• Brazil
• Philippines
• Thailand
• Chile

Benefits Of Outsourcing IT Services

Now let us explore some benefits of outsourcing IT service to an external service provider. 

Control IT Costs 

Hiring and managing an in-house IT team can be costly. The IT industry is one of the most expensive industries. However, organizations can save significant amounts of money by outsourcing IT services. Outsourcing IT services is a lot cheaper and better in terms of service quality than in-house teams. 

Improves Scalability

Another important benefit of outsourcing IT services is that it allows flexibility. Scaling up or down in-house IT teams can be difficult. It consumes a lot of money and time. However, outsourcing firms allow us to scale up or scale down operations quickly. They have professionals on the bench period who are ready to be added to the team. 

Talented Professionals 

Another benefit of outsourcing IT services is that outsourcing firms have a pool of talented professionals. These professionals are well exposed to different technologies that can be used in your project. They also have years of experience in the relevant fields of their work. 

Increased Productivity

One of the most important benefits of outsourcing IT services to an external provider is that it helps organizations increase their productivity. Professional outsourcing firms don’t compromise on service quality. They are also much more efficient in delivering tasks. Overall they are much more productive than in-house teams. 

Cargaison Express: Trusted IT Outsourcing Provider 

Outsourcing is a popular business strategy that helps organizations save money and streamline their operations. 

Some advantages of outsourcing IT services include increased productivity, access to talented professionals, flexibility and scalability, and cost-cutting.

India is one of the most popular IT outsourcing destinations across the globe. Business organizations prefer it for superior service quality and lower outsourcing costs.
Cargaison Express is a popular IT outsourcing firm in the Indian subcontinent. We provide IT outsourcing solutions to our clients across the globe. Contact us to learn more about our services.