According to industry experts, Human resource outsourcing (HRO) is increasingly becoming integral for businesses seeking operational efficiency. By partnering with specialized Human resource outsourcing providers, businesses can offload tasks such as payroll processing, employee benefits administration, and talent acquisition, allowing them to focus on strategic initiatives and core business activities.
Below is an ultimate list of outsourcing statistics that highlight the current trends and impact of outsourcing on businesses:
Business Growth and Market Size
According to a survey by Deloitte, 78% of businesses believe that outsourcing is a key driver for their growth and will remain crucial in the coming years.
The global outsourcing market size was valued at $92.5 billion in 2020 and is projected to reach $397.6 billion by 2028, growing at a CAGR of 19.4% from 2021 to 2028 (Fortune Business Insights).
Motivations for Outsourcing
In a survey conducted by Statista, cost reduction was the primary motivation for outsourcing among 57% of respondents.
Segment Analysis
The IT outsourcing market is the largest segment of the outsourcing industry, accounting for a significant portion of the overall market share. It was valued at $413.72 billion in 2020 (Statista).
Small Business Outsourcing
A study by Clutch revealed that 37% of small businesses in the United States outsource at least one business process.
Top Outsourcing Destinations
The top countries for outsourcing in 2021 are India, the Philippines, China, Malaysia, and Brazil, based on factors such as cost, talent availability, and business environment (Global Sourcing Association).
Motivations and Functions
According to a survey by Gartner, 64% of companies outsource to reduce costs, 30% to access skills or expertise not available internally, and 30% to improve service quality.
The most commonly outsourced functions include IT services, customer support, finance and accounting, human resource outsourcing (HRO), and manufacturing (Statista).
Impact and Benefits
A survey by Statista found that 59% of businesses that outsource reported improved efficiency, 57% experienced cost savings, and 47% saw an increase in flexibility.
The global business process outsourcing (BPO) market was valued at $203.1 billion in 2020 and is projected to reach $405.6 billion by 2027, with a CAGR of 8.4% from 2021 to 2027 (Grand View Research).
According to a study by Accenture, 70% of companies surveyed reported that outsourcing allowed them to focus on core business functions and improve innovation.
The outsourcing market in the Asia-Pacific region is expected to grow significantly, driven by factors such as cost advantages, skilled labor, and technology capabilities (Statista).
Challenges Faced
In a survey by Deloitte, 59% of businesses reported that outsourcing allows them to better manage and control business functions.
The main challenges faced by companies outsourcing globally include language barriers, cultural differences, data security concerns, and quality control (Deloitte).
As businesses strive for greater agility and cost-effectiveness, the role of Human Resource Outsourcing (HRO) continues to grow in significance.These statistics provide insights into the widespread adoption of outsourcing, its impact on various industries, and the motivations behind outsourcing decisions. They demonstrate the significant role outsourcing plays in driving business growth, cost optimization, and accessing specialized skills and resources.
