Outsourcing is the smartest way to cut costs.
Cutting costs by up to 85% lets startups and small businesses invest more in growth and new ideas. This helps them stay competitive and focus on what they do best.
Learn how outsourcing can boost your business with key stats and real-world examples.
Top Outsourcing Cost Savings Statistics (Editor’s Picks)
We’ve handpicked 29+ of the latest statistics, facts, and trends about outsourcing. Here are 6 that we believe will blow you away.
| 1 | Companies save an average of $87,012 per year by outsourcing |
| 2 | The maximum annual savings possible from outsourcing HR functions is $9,569 |
| 3 | By 2025, global spending on outsourcing will be $1.1 trillion |
| 4 | 37% of IT operations are outsourced |
| 5 | 84.2% of outsourcing deals originate in the US |
| 6 | Outsourcing to the Philippines can achieve a 70% reduction in labor costs |
How Much Do Companies Save By Outsourcing
Companies can save an average of $87,012 annually by outsourcing
That’s an 85% reduction compared to hiring onshore, allowing companies to drastically cut operational costs and redirect funds toward expansion and innovation.
Let’s break it down further:
| Outsourcing Service | Potential Savings/month (USD) | Percentage Savings |
| IT Outsourcing | $6,474 | 85% |
| Accounting Outsourcing | $6,248 | 84% |
| Digital Marketing Outsourcing | $8,053 | 87% |
| Development Outsourcing | $8,507 | 83% |
| Human Resource Outsourcing | $9,569 | 91% |
| Customer Support Outsourcing | $4,660 | 83% |
Most commonly outsourced services by Industry
- Accounting
- IT
- Digital Marketing
- Development
- Human Resources
- Customer Support
Best countries for outsourcing
- India
- Philippines
- Vietnam
- Malaysia
- Argentina
- Mexico
- China
- Poland
- Brazil
- Ukraine
Outsourcing accounting can save you up to $6,248/month (84% savings)
| Country | Average Monthly Salary (USD) |
| United States | $7,543 |
| Brazil | $2,732 |
| Poland | $2,552 |
| China | $2,244 |
| Mexico | $1,264 |
| Vietnam | $746 |
| Malaysia | $639 |
| India | $360 |
| Argentina | $337 |
| Philippines | $327 |
| Ukraine | $627 |
Outsourcing IT can save you up to $6,474/month (85% savings)
| Country | Average Salary |
| United States | $7,431 |
| China | $2,499 |
| Poland | $2,285 |
| Ukraine | $1,450 |
| Mexico | $1,378 |
| Malaysia | $852 |
| Vietnam | $589 |
| Argentina | $528 |
| Philippines | $395 |
| Brazil | $388 |
| India | $324 |
Outsourcing digital marketing can save you up to $8,053/month (87% savings)
| Country | Salary |
| United States | $9,166 |
| Poland | $2,788 |
| China | $2,105 |
| Brazil | $1,940 |
| Mexico | $1,139 |
| Ukraine | $928 |
| Malaysia | $639 |
| Philippines | $447 |
| Vietnam | $431 |
| Argentina | $392 |
| India | $312 |
Outsourcing development can save you up to $8,507/month (83% savings)
| Country | Salary |
| United States | $10,250 |
| Poland | $3,545 |
| Ukraine | $3,200 |
| China | $2,247 |
| Mexico | $1,919 |
| Brazil | $1,746 |
| Malaysia | $1,061 |
| Vietnam | $1,060 |
| Argentina | $948 |
| India | $860 |
| Philippines | $842 |
Outsourcing human resources can save you up to $9,569/month (91% savings)
| Country | Salary |
| United States | $10,416 |
| Mexico | $1,929 |
| China | $1,521 |
| Argentina | $1,139 |
| Vietnam | $848 |
| Brazil | $776 |
| Poland | $598 |
| India | $532 |
| Philippines | $471 |
| Ukraine | $451 |
| Malaysia | $203 |
Outsourcing customer support can save you up to $4,660/month (83% savings)
| Country | Salary |
| United States | $5,583 |
| China | $3,031 |
| Mexico | $1,320 |
| Poland | $1,268 |
| Malaysia | $1,061 |
| Brazil | $582 |
| India | $526 |
| Vietnam | $471 |
| Philippines | $395 |
| Ukraine | $376 |
| Argentina | $199 |
Outsourcing Cost Savings Statistics
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.
Global spending on outsourcing is predicted to hit $1.1 trillion by 2025 (Deloitte)
Breakdowns include $573.6 billion for ITO, $235.5 billion for BPO, and $329.7 billion for shared services, highlighting how integral outsourcing is to modern business strategies and operations.
84.2% of outsourcing deals start in the U.S. (Zippia)
This makes the United States the leader in the outsourcing market. The United Kingdom is far behind, contributing just 5.2% to global outsourcing deals, showing how dominant the U.S. is in this area.
IT leads in outsourcing among business departments (Radixweb)
About 37% of IT operations are handled by external services, with companies spending an average of 13.6% of their IT budgets on outsourcing, highlighting its importance for improving operations and cutting costs.
Companies can cut labor costs by 80% by outsourcing non-core functions (Finmasters)
By outsourcing to lower-cost countries such as the Philippines, where labor expenses are 70% to 90% less, companies can reduce overheads while maintaining decent pay for workers.
Outsourcing Cost Savings Examples
Opera has managed to cut its development costs by up to 70% by outsourcing work to Eastern Europe
This allowed them to pay less for skilled developers compared to what they’d pay in more expensive regions, cutting down costs and speeding up their tech projects.
GitLab saves up to $10,000 per employee annually by adopting a fully remote workforce
By not having offices and outsourcing jobs like development and customer support, they cut costs on things like rent and utilities while also working with top talent from around the world to improve efficiency.
Wise reduced its initial software development costs by hiring developers from Estonia
These savings allowed them to charge less for their services, which was key to their success and growth in the fintech sector.
What Are Outsourcing Benefits?
27% of small businesses outsource to increase efficiency (Invedus)
As an entrepreneur, attempting to handle all tasks can hinder business growth. Outsourcing functions like professional video editing or content writing to experts allows business owners to focus more on expanding their operations.
41% of businesses are increasing their use of contractors for specialized tasks (Weforum)
By hiring contractors with many years of experience, companies benefit from enhanced skills and new approaches that can refine and advance their operations.
37% of managers are very confident in their ability to delegate tasks (LBMC)
Entrepreneurs, often experts in their fields, should prioritize business growth and innovation. Delegating routine tasks allows them to focus on these core objectives, supported by a significant number of managers who trust their delegation skills.
Outsourcing non-essential tasks allows for quicker product launches (MyOutDesk)
A recent study notes that companies outsourcing non-critical tasks can see up to a 25% faster time-to-market, helping them launch products and services more efficiently.
Companies that outsource recruitment enjoy a 97% satisfaction rate (DigitalMinds)
Instead of sticking with the traditional step-by-step recruitment, companies that outsource these tasks experience substantial time and resource savings, which translates into high satisfaction.
Outsourcing HR leads to an 11% decrease in HR staff numbers (DigitalMinds)
The costs of onboarding, training, and compensating in-house HR staff add up quickly. Outsourcing HR functions helps cut down these costs and staff numbers, making it easier to manage a smaller, more focused in-house team with the aid of contract or remote HR specialists.
How Does Outsourcing Affect the Economy
U.S. companies outsource about 300,000 jobs annually (Zippa)
By outsourcing, companies aim to cut costs and leverage global skills, but this also poses questions about the implications for American workers and the overall job market.
One-third of employees are against outsourcing (Zippa)
Their main concern is that they might lose their jobs. Also, those who work for companies that outsource report feeling 66% more insecure at work, which points out the stress outsourcing can add.
Business process outsourcing accounts for 9% of the Philippines’ GDP (Invedus)
The sector is a major economic driver, employing about 1 million locals and generating around $27 billion. The high literacy rate (97%) and low labor costs make the Philippines a favored outsourcing destination.
83% of small businesses plan to keep or increase their BPO budget (Clutch)
Despite challenges and economic uncertainties, including concerns about a potential recession, small business leaders are optimistic about growth and continue to invest in business process outsourcing.
Outsourcing has strengthened the economies of some countries (The Balance)
These countries see more investments and better living standards for their workers as they become part of the global economy. This can also benefit the U.S. in the long run by improving international economic connections.
Bigger companies are much more likely to outsource than smaller ones (Time Doctor)
About 66% of companies with more than 50 employees use outsourcing, but only 29% of companies with 50 or fewer employees do the same.
Conclusion
Outsourcing can help companies save a lot of money, cutting costs by up to 85% and saving an average of $87,012 per year for each employee.
Key areas like IT and digital marketing can see savings as high as 87%, while outsourcing HR can save up to $114,828 per year . These savings let businesses invest more in growth and new ideas. In the future, global spending on outsourcing is expected to reach $1.1 trillion by 2025, showing how important it’s becoming.
By outsourcing smartly, companies can cut costs, focus on their core activities, and prepare for success in a changing market.
FAQ
How does outsourcing reduce costs?
Outsourcing reduces costs by leveraging lower labor costs in other countries, eliminating the need for expensive in-house staff, and minimizing overhead expenses like office space and equipment.
What is the average cost savings from outsourcing?
Businesses can save up to 85% on costs, with an average annual saving of $87,012. Specific areas like IT and digital marketing can see even higher savings.
What is the main benefit of outsourcing?
The main benefit of outsourcing is cost savings, which allows businesses to reinvest in growth and innovation, enhancing their competitive edge.
Which countries are best for outsourcing?
Some of the top countries for outsourcing include India, the Philippines, Vietnam, Malaysia, Argentina, Mexico, China, Poland, Brazil, and Ukraine.
What should businesses consider before outsourcing?
Businesses should consider the cost savings, the quality of potential vendors, the specific tasks to outsource, and how outsourcing aligns with their overall strategy.
