When looking for IT professionals, companies are often faced with a choice between outsourcing and outsourcing and choosing the most efficient work delivery method. This strategic choice can greatly affect an organization’s costs, quality, and resources. As a result, more and more companies favor traditional IT outsourcing models rather than looking for experts within the company. Increased business focus, access to special capabilities and cost reduction are some of the key factors driving the IT outsourcing market.
However, there is no “one size fits all” in the “IT outsourcing vs outsourcing” chart. It is likely that most companies will need to outsource at least some of the services that have a very specialized background or support requirement. But how far you can go by relinquishing responsibility for hosting, managing, and supporting IT services is a very personal decision.
This is why we recommend diving a little deeper into the topic. Let’s first look at the exact definitions.
What is IT outsourcing and IT insourcing? Basic Aspects of IT Outsourcing vs Outsourcing
Outsourcing is the process of hiring an outside organization not affiliated with the company to perform specific tasks.
Insourcing, on the other hand, is a business activity carried out within the operational infrastructure of an organization.
The key difference between outsourcing and outsourcing is the methods by which work, projects or tasks are assigned to different companies and departments for strategic purposes.
Recent global statistics
Internalization is a good old method that was used by our grandparents. Since then, looking at his stats seems a bit overkill. However, the same cannot be said for outsourcing, which has been a popular trend since 1989. Over the past three decades, it has become an integral part of business management worldwide. bridge.
That’s why we think it’s important to dive into the latest data and get all the most important outsourcing statistics for 2022.
#first. Before the pandemic, the global outsourcing market was worth 92.5 billion USD
Global outsourcing revenue has been on an unstable trajectory since 2012. Revenue peaked at $104.6 billion in 2014 before dropping to $88.9 billion the following year. Outsourcing statistics show that the trend of ups and downs in revenue continues, and due to COVID-19, these numbers are still volatile.
#1. Every year, about 300,000 jobs are outsourced from the United States
US outsourcing statistics like these make it easy to see why so many people have a negative view of outsourcing. Negative sentiment is especially strong when there is a major economic crisis; We have just experienced the second largest recession in history and the full impact of the global pandemic remains to be seen. It is therefore no surprise that at the height of the Great Recession, 86% of Americans blamed outsourcing for making the crisis worse.
#2. More than 44% of intelligence leaders say they use outsourced providers more today than they did just 5 years ago.
The latest outsourcing statistics show that the IT sector is moving fastest towards outsourcing. In fact, about 64% of outsourced technology functions are related to software development.
About 51% of technology managers say they hire remote developers for application development and software maintenance, and 40% outsource their data centers. #4. Saving money is the main driver for IT outsourcing
Freeing up resources to focus on core business is the most frequently cited reason for outsourcing IT functions (49%). Saving money is secondary, but always a top priority. About 45% of companies that outsource IT functions say their IT outsourcing projects are designed to save money. About 46% say that outsourcing gives them access to skill sets not available internally. #5. 71% of CFOs outsource or migrate some of their services.
