Running a business can be tough, especially when deciding what tasks to do yourself and what to outsource.
Knowing which tasks other businesses often outsource can help determine where you need extra help. Outsourcing the right tasks can make your job easier, improve your business’s efficiency, and help it grow.
This article explores the most outsourced services and provides valuable insights to help you make smart and informed decisions about outsourcing.
Most Outsourced Services Statistics (Editor’s Picks)
We’ve handpicked 44+ of the latest statistics, facts, and trends about the most outsourced services. Here are 6 that we believe will blow you away.
| 1 | Software Development is the top outsourced service by market size |
| 2 | 64% of IT leaders globally outsource their software development |
| 3 | 92% of G2000 companies outsource their IT tasks |
| 4 | 81% of companies outsource their cybersecurity tasks |
| 5 | 64% of businesses struggle to find tech workers with specialized skills and experience |
| 6 | Customer services holds the leading position in the BPO market |
Most Commonly Outsourced Services Worldwide
Software Development is the top outsourced service by market size
It leads with a market size of $100+ billion, just ahead of Customer Service. Companies often hire external software teams to improve efficiency, spark innovation, and save money. This growth is driven by rapid tech advances, the need for special skills, and outsourcing’s flexibility, which helps businesses quickly meet market and project demands.
| Outsourcing Service | 2024 Market Size (USD Billion) | CAGR (%) | 2032 Projected Market Size (USD Billion) |
| Software Development (ITO) | 100 | 5.6 | 154 |
| Customer Service (BPO) | 78 | 5 | 116 |
| Infrastructure Management (ITO) | 63 | 5.3 | 95 |
| Consulting Services (Professional) | 62 | 4.2 | 87 |
| Finance and Accounting (BPO) | 58 | 5.8 | 91 |
| Research and Development (KPO) | 42 | 5.3 | 63 |
| IT Support (ITO) | 41 | 5.3 | 60 |
| Human Resources (BPO) | 40 | 5.5 | 61 |
| Cybersecurity (ITO) | 39 | 10 | 84 |
| Data Analytics (KPO) | 38 | 9.4 | 77 |
Top 10 Most Commonly Outsourced Services
1. Software Development
There are currently around 28.7 million software developers worldwide (Statista)
This is mainly due to the increasing global demand for software development services. But much of this growth is expected to occur in China, where the growth rate is between six percent to eight percent.
64% of IT leaders globally outsource their software development (Statista)
This indicates that software development is the most common IT function that businesses prefer to outsource.
The software development outsourcing market is valued at $100.32 billion
Software development is a large segment of IT outsourcing. The demand for custom software, websites, and mobile apps drives its growth. Outsourcing allows companies to access specialized skills and reduce costs.
The software development outsourcing market is expected to reach $154.28 billion by 2032
It is growing at a CAGR of 7.78%. This growth comes from a focus on improving customer experience, driving business growth, and staying competitive. The rising demand for custom software, web development, and mobile apps shows how businesses are innovating to adapt to new digital needs and strengthen their online presence.
2. Customer Service
Over 50% of companies outsource customer service to boost efficiency and reduce costs (Enshored)
Outsourcing provides expertise and flexibility, helping businesses concentrate on their main activities while maintaining high-quality customer support.
Customer services holds the leading position in the BPO market (Grandview Research)
The growth in this segment came from an expanding need for service centers providing both offline and online technical support globally.
The customer service outsourcing market is valued at $78.75 billion
Outsourcing customer service allows businesses to enhance customer experiences, handle high call volumes, and offer 24/7 support. This improves customer satisfaction and loyalty.
The customer service outsourcing market is expected to reach $116.35 billion by 2032, growing at a CAGR of 5%
This increase comes from companies wanting to keep customers happy and stay ahead of competitors. More and more, they are using technologies like AI and chatbots to make customer service better and faster, helping the market grow.
3. Infrastructure Management
96% of businesses using cloud infrastructure can recover from a disaster in under four hours (KPMG)
This statistic is derived from surveys and analysis of business continuity practices among organizations using cloud services versus those relying on traditional on-premises setups. The superior disaster recovery capabilities of cloud services are attributed to their robust, distributed architecture and automated failover mechanisms.
The Infrastructure Management Outsourcing market is valued at $63 billion
Outsourcing infrastructure management allows businesses to maintain and improve their IT setups. This ensures their systems are reliable, can grow with demand, and are secure. This support is crucial for keeping operations smooth and protecting data.
The market is expected to reach $95 billion by 2032, growing at a CAGR of 5.3%
This growth is supported by the need to improve how operations run and to cut costs. More companies are using cloud computing and needing strong cybersecurity, which pushes the demand for this type of outsourcing. This helps businesses stay efficient and secure as they grow.
4. Consulting Services
The average revenue per management consultant is $212,000 (Statista)
This growth indicates that companies are seeking external consultants more frequently. These consultants provide strategic insights in business administration and development, as well as specialized industry knowledge.
The consulting services outsourcing market is valued at $62 billion
Outsourcing consulting helps companies get expert advice to make their operations better and more efficient. It’s useful for businesses that want to improve without hiring more full-time staff. This method helps companies stay flexible, save money, and keep up with competitors by bringing in outside experts for specific projects or problems.
The market is expected to reach $89.65 billion by 2032, growing at a CAGR of 4.2%
This increase is driven by the need for specialized expertise and strategic guidance. As companies deal with complex rules and push for digital changes, the demand for consulting services keeps going up. This helps them adapt and compete better in their industries.
5. Finance and Accounting
61% of businesses outsource their tax functions to ensure compliance and efficiency (Deloitte)
This approach helps companies handle complex tax rules better. Outsourcing lets them use expert knowledge to stay compliant and reduce risks. As tax laws get more complicated, more businesses are expected to outsource to manage their taxes effectively.
The Finance and Accounting Outsourcing market is valued at $58 billion
Outsourcing these functions helps companies streamline operations, enhance financial accuracy, and concentrate on their main business activities. This approach is key for firms aiming to optimize their resources and focus on growth.
The market is expected to reach $91 billion by 2032, growing at a CAGR of 5.8%
This growth is driven by the need for better financial accuracy and compliance. Businesses are using advanced technologies such as AI and automation to increase efficiency and minimize errors in financial processes. This helps companies manage their finances more effectively and stay compliant with regulations.
6. Research and Development
Global R&D spending in the automotive sector reached approximately $158 billion (Statista)
Companies based in the European Union contributed the most, with spending over $65 billion. Japanese companies were the second highest spenders. Volkswagen was the largest single spender in R&D.
The research and development outsourcing market is valued at $42 billion
Outsourcing R&D helps businesses innovate, access specialized expertise, and speed up product development. This approach allows companies to stay competitive by quickly bringing new products to market.
The market is expected to reach $63 billion by 2032, growing at a CAGR of 5.3%
This expansion is fueled by the need for new products and technological advancements. Companies are investing in innovative research and using global talent to stay ahead of competitors. This strategy helps them introduce new technologies and products faster.
7. IT Support
92% of G2000 companies outsource their IT tasks (ISG)
That’s a lot more compared to the 59% who outsource business processes, showing a clear preference for IT outsourcing among these top companies.
20% of US companies outsource all their IT support to other countries (Go Remotely)
Also, 15% send out all their app development and maintenance, and 10% do the same for their data management. It looks like this trend will continue, with about 9% to 11% of companies planning to outsource more IT work abroad.
The IT support outsourcing market is valued at $41 billion
Outsourcing IT support helps companies keep their systems working well, fix technical issues fast, and ensure business runs smoothly. This is important for keeping daily operations efficient and reliable.
The market is expected to reach $61 billion by 2032, growing at a CAGR of 5.3%
This increase is driven by the need for reliable IT support and the desire to cut costs. As businesses use more technology, they are looking for comprehensive IT support services to help them handle tech issues efficiently and affordably.
8. Human Resources
Companies that outsource HR save an average of 27.2% (NAPEO)
These companies benefit financially by delegating responsibilities like hiring, recruiting, and compliance to professional employer organizations.
The human resources outsourcing market is valued at $40 billion
Outsourcing HR functions helps businesses concentrate on their main activities, boost efficiency, and tap into specialized HR expertise. This approach allows companies to manage their workforce more effectively and streamline operations.
The market is expected to reach $61 billion by 2032, growing at a CAGR of 5.5%
This growth is driven by efforts to improve HR operations and cut costs. Companies are also using HR outsourcing to better manage regulatory compliance and employee benefits, making their HR practices more efficient and cost-effective.
9. Cybersecurity
81% of companies outsource their cybersecurity tasks (Finmasters)
This is the top outsourced function in IT, with software development at 79% and infrastructure services at 77%, underscoring the importance of external expertise in managing IT risks and development.
The cybersecurity outsourcing market is valued at $39 billion
Outsourcing cybersecurity allows companies to protect their data and systems against cyber threats. This ensures their operations continue smoothly and they comply with regulations, safeguarding their business against disruptions and legal issues.
The market is expected to reach $84 billion by 2032, growing at a CAGR of 10%
This expansion is driven by the rising number of cyberattacks and the need for strong security measures. Businesses are investing in advanced security solutions and expertise to protect their digital assets and ensure their operations are secure.
10. Data Analytics
64% of businesses struggle to find tech workers with specialized skills and experience (Technology Review)
This shortage hinders their ability to accelerate business intelligence initiatives. Outsourcing offers a solution by providing quick and easy access to niche skills and expertise, saving time and money in talent acquisition.
The data analytics outsourcing market is valued at $38 billion
Outsourcing data analytics helps businesses gain insights, make decisions based on data, and enhance business performance. This approach enables companies to leverage specialized expertise to analyze large datasets effectively.
The market is expected to reach $77 billion by 2032, growing at a CAGR of 9.4%
This growth is fueled by the focus on using big data and enhancing business intelligence. Companies are increasingly turning to data analytics to refine operations, understand customer behavior, and guide strategic decisions.
Top Countries For Outsourcing
Here’s a detailed breakdown:
| Country | Contract Size (billion USD) |
| India | 194 |
| China | 175 |
| Philippines | 31 |
| Mexico | 26 |
| Brazil | 21 |
| Poland | 18 |
| Argentina | 10 |
| Ukraine | 8 |
| Malaysia | 7 |
| Vietnam | 5 |
1. India
59% of American companies choose India for outsourcing (Orient Software)
Compared to other Asian countries like China and the Philippines, India is a stronger leader in outsourcing. This leadership is expected to continue, with India’s IT Outsourcing market set to bring in $10.51 billion in 2024.
2. Philippines
Companies that outsource to the Philippines can cut labor costs by 70% (OutsourceAccelerator)
Due to its lower cost of living and wage ranges, outsourcing to the Philippines offers significant savings and allows companies to provide a decent wage for local workers. This advantage is rooted in the country’s status as a developing nation in Southeast Asia, which maintains a lower cost of living than neighboring countries.
3. Vietnam
Vietnam’s IT outsourcing market is valued at USD 700 million (Statista)
It is expected to grow at a CAGR of 12.23%, reaching USD 1,237 by 2029. This makes Vietnam one of the fastest-growing outsourcing destinations globally.
4. Malaysia
Malaysia is an attractive destination for outsourcing services due to its strategic location and well-developed infrastructure (Statista)
Its proximity to major Asian markets like China and India allows companies easy access to expand their operations. Additionally, the Malaysian government supports the outsourcing industry’s growth with tax incentives and investment grants, further enhancing its appeal.
5. Argentina
The IT industry in Argentina is expected to grow by 17.76% over the next five years (MobilUnity)
This growth will increase the market volume to approximately $8 billion by 2028. This indicates a continuous development in Argentina’s IT sector, attracting increasing resources and investment.
6. Mexico
Mexico’s BPO market growth is significantly influenced by its proximity to the United States and a large pool of skilled labor (Statista)
Many U.S. businesses outsource their back-office functions to Mexico due to cost-effectiveness and convenience. Additionally, Mexico’s large population of young, educated, bilingual workers makes it an attractive location for outsourcing, supporting the industry’s expansion.
7. China
The service outsourcing industry in China is worth over $404 billion (Outsource Accelerator)
This growth includes a 17.6% increase in contract value and an 18.6% rise in the value of executed contracts, totaling 1.96 trillion yuan ($272 billion).
8. Poland
Labor costs in Poland are less than half the EU average (Time Doctor)
Polish workers earn an average of €11/hour ($14.44 USD), compared to €28.50/hour ($33.88 USD) in the EU. Polish software developers earn about €16/hour ($21.00 USD). This is still much lower than the EU average. These lower costs make Poland a favorable place for outsourcing, especially in software development.
9. Brazil
A main trend in Brazil’s IT outsourcing market is the growth of cloud computing services (Statista)
Cloud computing allows companies to access IT resources online. This method is often cheaper and more flexible than traditional IT setups. Another trend is the development of new outsourcing regions in Brazil, such as the Northeast. This region offers lower costs and a skilled workforce, making Brazil more attractive for outsourcing.
10. Ukraine
Ukraine is a major center for IT outsourcing in Central and Eastern Europe (N-iX)
The country has seen its IT workforce grow to 200,000 professionals and hosts over 1,600 IT outsourcing companies, a number that has doubled over the past five years.
Conclusion
Businesses are increasingly turning to outsourcing to streamline operations and cut costs.
Software development, leading with a market size of over $100 billion, is projected to grow to $154 billion by 2032. Additionally, 81% of companies outsource their cybersecurity, highlighting the growing need to protect data.
Looking ahead, we can expect more outsourcing in areas like software development, data analytics, and customer service as businesses seek specialized skills and technological flexibility to stay competitive in a fast-changing global market.
FAQ
What are the most commonly outsourced business functions today?
Software development, customer service, cybersecurity, data analytics, and human resources are among the top functions outsourced by businesses to improve efficiency and access specialized skills.
Why do companies choose to outsource software development?
Companies outsource software development to handle complex projects, tap into global talent, and save on development costs, while also speeding up time to market for new software solutions.
Which industry outsources the most?
The technology industry outsources the most, especially in areas like software development and IT support. This is because technology changes quickly and companies need specialized skills that are hard to find.
What should I consider before deciding to outsource a business function?
Consider the complexity of the task, your in-house capabilities, potential cost savings, and the quality of services provided by outsourcing vendors.
