Outsourcing Statistics That Show Bright Prospects
At this day and age of globalization, what do the figures tell people about the current state of the outsourcing industry? Are you updated or already way behind?
With the invention and expansion of Internet and digital technology in recent years, the services provided by developing countries such as India and the Philippines have become accessible to multinational companies based in Western countries such as Canada and the United States.
Moving to the Future
Outsourcing statistics revealed that the entire industry will probably reach more than the 10-billion dollar mark.
According to Statisticbrain.com, a total of 2,273,392 jobs in the United States were outsourced in 2011. About 35 percent of chief financial officers surveyed said their companies were currently implementing the process, 24 percent of them favored India as top destination, while 18 percent of them favored China as their third-party service provider.
In all the sectors, statistics showed that 53 percent of companies are in manufacturing, 43 percent are in Information Technology services, 38 percent are in research and development, 26 percent are in distribution, and 12 percent are in call or help centers.
The same source said the top five countries in terms of estimated number of Ukraine updates workforce are as follows: India with 1,430,000,000; Indonesia with 1,033,000,000; China with 780,000,000; Vietnam with 46,000,000; and the Philippines and Thailand with 39,000,000 each.
Other countries include Egypt with 26,000,000; Ukraine with 22,000,000; Kenya with 18,000,000; South Africa and Poland with 17,000,000 each; Malaysia with 12,000,000; Ghana with 11,000,000; Romania with 9,000,000; Chile with 8,000,000; Senegal with 6,000,000; Czech Republic with 5,000,000; Hungary with 4,000,000; Bulgaria and Singapore with 3,000,000 each; Lithuania and Jordan with 2,000,000 each; and Latvia and Estonia with 1,000,000 each.
Primary Reason and Motivating Factors
Before, the business process is a new trend in the business industry. Later, it spread and became a strategic approach by various establishments. Since then, to save money remains the primary reason and motivating factor based on the facts and information gathered from various outsourcing statistics and studies.
Instead of taking the risk of hiring new people to deploy in departments that are soon to be created, it would be simpler and cost-effective to contract these functions to outside parties.
Statisticbrain.com said companies gave multiple answers and reasons to the question why they opted to outsource. Some 44 percent of these companies said they seek to reduce or control costs, 34 percent said they intend to gain access to IT resources unavailable internally, and 31 percent said they want to free up internal resources. Around 28 percent, on the other hand, said they want to improve business or customer focus.
About 22 percent of the respondents said they aim to accelerate company reorganization/transformation through the business process. Meanwhile, 15 percent said they want to accelerate a project or gain access to management expertise unavailable internally and while nine percent said they intend to reduce time to market.
To meet the demand of various markets, companies need to depend on reliable outsourcing statistics and reports as basis for their analysis and decision-making. This will certainly help them to deliver the best outputs and quality solutions to a wide array of business challenges.