Advantages and Flaws of Outsourcing

12. 78% of respondents in Deloitte’s survey say they feel positive about their outsourcing relationship with other companies.

(Deloitte)

For the most part, businesses seem to be satisfied with their outsourcing deals because they help them reduce costs and shift focus to other important things. Stats on outsourcing tell us giants like India are becoming more and more professional each year, with a deeper and deeper talent pool.

13. 65% of businesses that outsource application hosting say they will increase their outsourcing efforts in the future.

(Computer Economics)

This says a lot about the popularity of the SaaS model, where an application is hosted by a third-party company that offers it for a subscription fee. This model is a lot more cost-efficient because it relies on cloud-computing and doesn’t take up the company’s resources, which is why it was one of the biggest IT outsourcing trends in 2019.

14. For 50% of employers, the quality of the service is one of the biggest drawbacks of outsourcing.

(Credit Donkey)

Half of employers feel the quality they’re getting from outsourcing workers isn’t that great. In addition to that, these employers have a lot of problems with workers not being proactive enough (able to foresee problems before they happen and act upon them).

15. 59% of businesses use outsourcing to reduce their expenses.

(Deloitte)

On the other hand, outsourcing statistics show 57% of businesses use outsourcing in order to focus on their core business, while 47% use it to solve capacity issues. This is especially important for small companies and businesses, which simply lack space and capacity to support numerous other workers. In the IT and business sectors, the cost-cutting reason is number one for 87% of businesses.

16. 89% of companies say they would never outsource strategic planning functions.

(Credit Donkey)

This is something companies consider an internal matter that outside workers can’t be trusted with. In the same manner, jobs outsourcing statistics show 80% of businesses are not too keen on the idea of outsourcing marketing and sales positions, either.

17. 40% of help desk positions in the banking industry are outsourced.

(Credit Donkey)

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.

18. Companies that outsource payroll management save 18% more on average than companies that deal with it in-house.

(PWC)

Of course, this doesn’t include just payroll management but also workforce administration, health & welfare benefits, and time & attendance. In addition to that, companies which opt for a single vendor to outsource multiple functions can save up to 32% according to outsourcing statistics.

19. Outsourcing will see an increase in higher-level jobs in the future.

(ATKearney)

Although automation is one of the biggest trends in the world right now, with every fourth job being lost to it, there are some fields where outsourcing is simply a much better option. Considering the increasing quality of the outsourcing workforce, we can expect higher-level jobs to be outsourced in the future.

20. The average pay for an entry-level outsourced IT worker in China is $7,000.

(The Balance)

That is why many outsourcing statistics 2018 show US companies in the IT sector prefer to use Chinese workers for these positions. In India, the leader in global outsourcing, this type of worker earns $8,400, so China is a lot more affordable. According to Balance, some Silicon Valley companies even offer temporary work visas as a form of payment.