What is Outsourcing?

Before delving into the annual number of outsourced jobs, it’s important to understand what outsourcing entails. Simply put, outsourcing refers to the practice of hiring an external provider to perform a task or process that would typically be carried out in-house by a company’s own employees.

The Benefits of Outsourcing

There are several reasons why companies choose to outsource jobs annually. One of the primary benefits is cost savings. By outsourcing certain tasks, companies can take advantage of the expertise and resources of external providers, often at a lower cost than hiring and training their own employees. Additionally, outsourcing can help companies to focus on their core competencies, allowing them to devote more time and resources to their core business activities.

The Impact on Employment

The increasing trend towards outsourcing has had a significant impact on employment levels. While it’s true that some jobs have been lost as a result of outsourcing, new jobs have also been created in areas such as IT services, customer service, and accounting. In fact, according to a report by the Global Information Technology Services (GITS) industry association, the global IT services market is expected to create 14 million new jobs between 2015 and 2030.

The Annual Number of Outsourced Jobs

Now that we’ve covered the basics of outsourcing and its impact on employment let’s take a look at the annual number of outsourced jobs. According to a report by Statista, the total number of outsourced jobs worldwide was 23 million in 2019. This represents a significant increase from the previous year, when the figure stood at 22.5 million.

Breakdown by Country

The United States remains the largest market for outsourcing services, with approximately 8.5 million outsourced jobs in 2019. However, India has experienced significant growth in recent years and is now home to around 4.5 million outsourced jobs. Other major players in the outsourcing industry include the Philippines, China, and Mexico.

By Service Category

The most common service categories for outsourcing are IT services, business process outsourcing (BPO), and knowledge process outsourcing (KPO). In 2019, IT services accounted for around 75% of all outsourced jobs worldwide, with BPO and KPO making up the remaining 25%.

Conclusion

In conclusion, the annual number of outsourced jobs has been steadily increasing in recent years, driven by a growing trend towards cost savings and a desire to focus on core business activities. While some jobs have been lost as a result of outsourcing, new jobs have also been created, particularly in areas such as IT services. The United States remains the largest market for outsourcing services, with India experiencing significant growth in recent years. IT services continue to be the most common service category for outsourcing, accounting for around 75% of all outsourced jobs worldwide.