If you’re not already aware of the many benefits of outsourcing, then you’re already far, far behind. In recent years, outsourcing has gone from being a hot trend to being a standard in business. Outsourcing statistics will tell you that the number of companies employing this strategy is increasing every year and the practice has now spread to industries that do not traditionally employ outsourcing. Now, even entrepreneurs and small business entities are taking advantage of the many benefits of hiring companies and individuals abroad.
When the concept was first introduced during the 1970s (although some experts would argue that the history of outsourcing goes back a long way), only manufacturing companies outsourced some or most of their job functions to other companies. So, as it is now, the main reason to outsource is to save money. Wanting to expand but realizing the cost implications of hiring new staff and creating new departments, companies simply thought of outsourcing their minor but still important requirements to third parties. The result is that companies can still pursue their growth aspirations and reduce costs at the same time.
At the onset of globalization and with the invention of the Internet and other communication technologies, the large pool of highly skilled but affordable labor that is present in the East and other developing countries became accessible to Western companies. Countries like the Philippines and India are just two of the Asian countries that the most developed countries turn to in search of cheap but quality work. By the year 2005, outsourcing statistics have shown that the industry has reached the $10 billion mark. It has been growing continuously almost exponentially since then and the interesting part is that it is not expected to slow down even in the face of the recession that the United States and other major economies are experiencing.
Here are some more interesting outsourcing statistics and facts for you:
. Information technology remains the most outsourced type of work, accounting for nearly 30% of the entire industry. It is closely followed by human resources and sales.
. The most popular source of labor are the Philippines, India and China. Businesses prefer these three countries due to their stable communication infrastructure and the presence of highly skilled and skilled people who are proficient in written and spoken English.
. It has been estimated that more than 4 million jobs have been transferred from Western countries to developing countries due to outsourcing. This number is expected to increase exponentially in the coming years.
. The economic development of India, as well as other developing countries, has been largely attributed to its ability to provide cheap but reliable labor.
Let these facts and statistics on outsourcing give you an idea of how great the concept is and what it can do for your business. Your hesitancy to outsource may be affecting your company’s chances of competing and growing in this highly competitive business environment. Therefore, you should seriously consider outsourcing to expand your business and make it competitive globally.