Outsourcing as a phenomenon is not new and has been going on for years. But since 1990 the offshore outsourcing market has grown immensely bringing it into the spotlight.
Outsourcing statistics show that the largest percentage of jobs being outsourced is in Information Technology, by around 28%. The next largest field is human resources taking 15% of the outsourcing market, followed closely by sales and marketing outsourcing with 14% and financial services outsourcing at 11%. The remaining 32% is made up of other different processes such as administrative outsourcing. Most of the outsourcing is done by multinational companies and the most popular destinations are India, China and the Philippines. Of course these figures slightly differ depending on the study and the point of view, but this division gives an idea of the outsourcing market.
Below you will find some outsourcing statistics:
- It has been predicted by the International Data Corporation
(IDC) that the global IT-enabled services market will account for
revenues of $1.2 trillion by 2006.
- Meta Group estimates that offshore outsourcing will grow by more
than 20% annually, increasing it from a $7 billion market in 2003 to
a $10 billion market in 2005.
- According to Deloitte Consulting, 2 million jobs will move from
the United States and Europe to cheaper destinations in the
financial services business alone. The emigration of service jobs
across all industries could be as high as 4 million. The consulting
firm also forecasts that in the next five years 3/4 of major
financial institutions and investment banks will allocate tasks to
low labor cost countries and that India will be at the top of the
list. Global financial institutions are predicted to invest $356
billion in India for outsourcing projects.
- Forrester Research estimates that 3.3 million U.S. jobs and $136
billion in wages could be moved to such countries as India, China,
and Russia by 2015.
- Among the different offshore destinations, India has become the
number one location for most companies. In its 2002 report titled, "IT
Trends in India," Gartner wrote that the market opportunity for
Indian providers would grow to $25 billion by 2005. Gartner also
states that, the global BPO market increased by 13% between 1999 and
2000, to $119 billion, and it will reach $234 billion in 2005.
