Outsourcing on the numbers: What you need to know

June 18, 2021

By now, you have probably read about outsourcing a couple of times. There’s people talking about the many benefits of outsourcing your software development process, about the many types of software outsourcing and so on.

However, basing your knowledge on this topic solemnly on what other people have to say isn’t enough. If you really want to get a better look at this new method and understand why every small, medium and big company seems to be outsourcing more and more products, it’s time to look at the numbers that back up everything we have said about outsourcing so far.

Why everyone is choosing to outsource their software development process

According to a study made by Deloitte, in their 2016 Global outsourcing survey, 78% of companies worldwide have outsource at least one of their process and have been completely happy with the result gotten.

Furthermore, this 78% of companies stated they were happy with the relationship they managed to create with their outsourcing provider, proving these types of working relationships are incredible beneficial.

When you look at the amount of companies from all types that are currently outsourcing at least one of their processes, it’s no wonder why everyone keeps choosing to outsource their software development process, it’s because it actually works!

There’s also the fact companies keep on choosing to outsource process because it has real benefits that positively impacts their company. According to the same survey mentioned before, the benefits companies have been able to perceived from such a collaboration are:

  1. Cost cutting

  2. Being able to focus on other core business

  3. Solves capacity issues

  4. Enhances service quality

Keep in mind these are just the top benefits companies said to perceived when outsourcing their task, there are way more benefits they have gained from doing this that didn’t make it into the list, but are still relevant.

Top outsourcing markets in the world

According to a research made by Statista and KPMG’s Global IT-BPO Outsourcing deals Analysis, the leading outsourcing market in the world is the IT-BPO sector, with companies outsourcing their technology and software related processes more than anything else.

It is worth to mention that according to an study made by Kearney Global Services back in 2017, at least 1 million tasks have been automated, making people’s jobs extremely easier than before.

This matches up with a research made by statistics, which shows that in average, the outsourcing market (from 2014 up to this current year) can amount over 80 billion dollars in revenue, and it doesn’t seem to be stopping anytime soon.

Now, as to the countries who are leading the outsourcing industry, you will be glad to know that statistically, America is the top outsourcing buyer in the whole world.

As to where the top outsourcing companies are and which ones are the countries leading the way, it is a constant battle going on between India and various countries in Latin America.

According to an study made by Kearney Global back in 2017, the very first country when it comes to offering global services is India, with countries like Colombia, Brazil and Mexico following up right back.

The outsourcing, specially the software outsourcing market is growing by the minute, and there’s no need to deny it. If anything, as a company, you should start to realize all the great benefits software outsourcing can bring to your company, and start looking for a nearshore provider to help you reach your company’s full potential. Millions of companies have done it, why not yours?