The Importance of Outsourcing Job Statistics


Overseas outsourcing is not a new trend and it has been happening for years. However, since 1990 the job growth statistics have shown that the market is seeing substantial increases. This increase has brought about a lot of scrutiny and speculation. Overseas outsourcing has become a major issue for many political parties in the United States and is often used in election campaigns. Today, there is a big debate among supporters and non-supporters of overseas outsourcing. Consider some main effects of outsourcing jobs and why they are beneficial.

When it comes to outsourcing jobs, job growth statistics show that information technology or global IT stand above the rest by taking nearly 28% of the entire outsourcing market. The next common job of overseas outsourcing is human resource departments at 15%, then sales and marketing with 14% and lastly financial services with 11%. The rest of the 32% is made up of administrative support duties and other similar processes. Most jobs are outsourced by a multinational company such as those in the United States and Europe to countries such as India, the Philippines and China.

The Issues

While overseas outsourcing statistics provide us with a positive picture of some problems associated with outsourcing, there are some major ones that you need to consider so you understand what you may experience. The biggest problem for outsourcing is those associated with geographical location in the offshore destination. This can include problems such as language barriers, accent problems, political instability, changes in laws or regulations, labor laws and cultural issues.

The second biggest issue is with infrastructure and operational problems that often come in the form of improper communication infrastructure, improper disaster recovery capacity, power generation capacity, non-renewable resources and other similar problems. Before you choose an offshore destination you need to check out the individual overseas outsourcing statistics for factors in helping you determine the success for your outsourcing project.

Why Statistics

statistics on outsourcing jobs growth statistics can be helpful, but you will notice that all the reports provide different information. Some reports show that outsourcing is slowing down while other reports show a good, strong future for outsourcing. Consider some important overseas outsourcing statistics that can help you make the decision on whether or not to outsource you business services.

Overseas Outsourcing Statistics

The International Data Corporation (IDC) predicted that the global IT related services market would make up account revenues of $1.2 trillion by the year 2010. Meta Group estimated that offshore outsourcing would grow over 20% a year, increasing from a $7 billion market in 2003 to a $10 billion market by 2005.

Deloitte Consulting reported that 2 million jobs would move from the United States and Europe to overseas destinations within the financial services business alone. Across all industries the emigration of service jobs can be as high as 4 million. In the next five years, the consulting firm also forecasts that ¾ of the major financial institutions and investment banks will send tasks overseas to lower labor costs and India is suspected to be at the top of the list. It is projected that global financial institutions will invest $356 billion in India for statistics on outsourcing jobs projects.

Forrester Research estimated that 3.3 million US jobs and about $136 billion in wages would be moved to overseas countries such as India, China and Russia by 2015. Among overseas destinations India is the number one choice for many companies. A 2002 report estimated that the market opportunity for Indian providers would grow to $25 billion by 2005.

Another study surveyed 650 organizations in 32 countries. The resulting statistics confirmed the success of overseas outsourcing. 89% of organizations said they had plans to maintain their outsourcing transactions. 47% of the statistics on outsourcing jobs admitted that choosing an outsourcing partner opened new opportunities and allowed them to experience new things.

42% of the organizations said that they believed statistics on outsourcing jobs was responsible for their financial performance. 27% believed outsourcing was responsible for greatly improving their competitiveness. 60% of statistics on outsourcing jobs and 59% of outsourcing providers shared the belief that outsourcing problems were linked to the people chosen to perform the project.

All these outsourcing statistics show that the trend of offshore outsourcing jobs is larger than ever and is going to continue to grow. In the next 10 years, India itself is expecting to see a growth of over 2 million jobs. Offshore BPO offers advantages on both sides and is growing despite debates between supporters and non-supporters. Even though there are disadvantages associated with overseas statistics on outsourcing jobs, proper planning and careful functioning can help you to have success with overseas statistics on outsourcing jobs. So consider what outsourcing can do for your company and then get started choosing the right overseas company and developing a successful business plan that will allow you to avoid the disadvantages of overseas outsourcing and enjoy the benefits that the statistics prove you will receive.

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