The high demand for developers and IT specialists of various profiles, digital transformation, and technology development makes outsourced software development a popular service for business. This service is highly relevant for global corporations, small businesses, and minor startups.
In this article, we have collected interesting statistic data, numbers, and facts. They will help you better comprehend what the IT outsourcing and offshore software development industry look like now and what waits for it in the nearest future.
1. With around 70% surveyed saying outsourcing was used as a cost-cutting tool, another 40% said outsourcing provided organizational flexibility to deal with the changes felt by the pandemic; remote work and fast-paced digitalization — Deloitte
2. 24% of small businesses that outsource at least some of their functions do so to increase efficiency. [Clutch]
3. The future direction of outsourcing facts and figures is mainly predicted with strong optimism. Grand View Research expects a compounded annual growth rate of 8% in the period between 2020 and 2027.
4. IT outsourcing statistics show it’s one of the industries most affected by outsourcing business processes. 57% of organizations believe outsourcing allows them to completely focus on their core business activities. [Deloitte Global Outsourcing Survey]
5. For the last five years, the IT sector has grown immensely, generating billions of dollars in revenue. It’s projected to reach a market volume of US$429,291.7 million by 2025. The US will generate the biggest revenue ever in 2021 – US$129,609 million. [Statista]
6. The IT & business services sopending in the travel, hospitality and logistics industry is forecast to decrease by around 39.5 percent in 2021 due to impact of the coronavirus pandemic. This is the highest projected decrease in spending across all industries in that year. [Statista]
7. Outsourcing creates massive employment across several developing nations like India, the Philippines, Ukraine, China, Poland, etc. At least 300,000 jobs are outsourced from the US to these countries on an annual basis. [Smallbizgenius]
8. 37% of small businesses currently outsource at least one of their business processes. However, it is businesses with more than 50 employees are 66% more likely to outsource their business processes. [Clutch]
9. The IT & business services sopending in the travel, hospitality and logistics industry is forecast to decrease by around 39.5 percent in 2021 due to impact of the coronavirus pandemic. This is the highest projected decrease in spending across all industries in that year. [Statista]
10. Despite, or perhaps because of the COVID-19 pandemic, the percentage of their budget IT departments spend on outsourcing continued to rise from 12.7% in 2019 to 13.6% in 2020.
11. The most commonly outsourced jobs in small businesses are accounting and IT – 37% of all accounting and IT tasks get outsourced. [Fortunly]
12. Ukraine has been featured on Gartner’s list of top 30 countries for offshore software development services for seven years in a row.
We recommend: «9 Reasons Why to Outsource your App Development to Ukraine».
13. Application development is one of the most frequently outsourced IT functions in 2021. More than 60% of tech companies are outsourcing at least a part of their application development. [Avasant IT Outsourcing Statistics report]
14. The majority of outsourcing market transactions are digital-focused, while only around 30% are pure traditional services. [Statista]
15. Both big and small business outsourcing statistics indicate that the value and quality of outsourced goods and services are the top priorities in 2020. [BrainHub]
16. 34% of companies outsourced in order to get access to a broader IT talent pool. [ITexico]
Businesses will certainly continue to outsource jobs in 2021 to reduce operating costs, focus on core competencies, and hire high-quality experts.
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