Many companies, from small to medium, to big businesses, outsource worldwide to streamline their business’ work, save cost, and facilitate growth. In fact, in 2019, the global outsourcing market already amounted to 92.5 billion dollars. Outsourcing has become crucial in businesses’ way of doing that it has already become more normal to outsource than not.
Moreover, here are some facts and statistics you should know about outsourcing.
Most Companies Outsource to Focus on Core Functions and Save Cost
Many companies usually choose to outsource their functions due to the benefits of cost-cutting. Ask any businesses why they’d outsource, and the answer is usually because it is cheaper.
In fact, Deloitte reported that in 2016 and 2017, businesses answered cost-cutting as a top driving force for outsourcing.
However, aside from that benefit, many companies also outsource to focus on their core functions.
The Business Process Outsourcing Market Will Keep on Growing
Gartner forecasted that the BPO market would grow at a five-year Compound Annual Growth Rate of 3.5% through 2023. Moreover, AI-related processes like robotic process automation and digital services will drive BPOs forward.
Communication Is a Huge Factor to a Company’s Preparedness for a Work From Home Setup
Because of COVID-19, many companies are forced to transition from working at the office to work from home. According to OWL Labs, 66% of company workers believe their company is somewhat prepared for a work from home setup. Moreover, 34% believe their companies are not. According to OWL Labs, organizational leaders who provide clear communication and guidance to their employees appear to show a company has a sense of readiness.
Asian Countries Are the Most Popular Outsourcing Destinations
Asian countries are the ones leading the race for the most popular outsourcing destinations in the world. In fact, according to the 2019 Global Services Location Index (GSLI), the top five in the list of outsourcing destinations in the world are India, China, Malaysia, Indonesia, and Vietnam are the ones. Moreover, according to Asia Premier, most of those countries ranked high in these areas, Financial Attractiveness, People Skills and Availability, Business Environment, and Digital Resonance.