In our previous articles, you’ve been introduced to offshoring and how it fits into today’s business landscape. But to fully understand outsourcing as a strategy — and to know if it’s the right move for your business — it helps to look at the numbers.
Built on years of hands-on experience and industry insight, this article brings together the most important and up-to-date outsourcing statistics to give you the full picture — not just the surface-level stuff you’ll find elsewhere. A lot of articles out there barely scratch the surface or skip over critical facts. That’s why we’re here: to point out the gaps, clear up the confusion, and give you the clearest understanding of what outsourcing looks like today and where it’s headed.
Global Outsourcing Landscape
The global outsourcing market is experiencing significant growth, with the business process outsourcing (BPO) sector alone projected to reach approximately $347.95 billion in 2025. This expansion is driven by factors such as the increasing demand for cost-effective solutions, access to specialised expertise, and the need for businesses to focus on core competencies. As companies continue to seek efficiencies and scalability, the outsourcing industry is expected to maintain its upward trajectory in the coming years.
Top Countries Dominating the Outsourcing Market
India continues to lead the global outsourcing landscape, particularly in IT services, with its industry projected to reach a value of INR 8,830 billion (approximately $121 billion) by 2025, growing at a CAGR of 7.25%. The United States stands as the largest consumer of outsourcing services, generating the highest revenue of US$213.57 billion in 2025. China remains a dominant force in manufacturing outsourcing, accounting for 28.7% of the world’s manufacturing output as of 2019. The Philippines has solidified its position in the BPO sector, contributing approximately 10% to the country’s GDP.
Eastern European countries like Poland and Ukraine are emerging as key players in software development outsourcing, offering a blend of technical expertise and cost-effectiveness. Poland boasts over 500,000 ICT specialists, with a significant portion engaged in IT outsourcing services . Ukraine, despite geopolitical challenges, has a thriving IT sector with over 300,000 ICT professionals, contributing significantly to its economy.
The Balkan region is also gaining traction as an outsourcing destination. Countries like Serbia, Bulgaria, and Romania are known for their IT outsourcing capabilities, with cities like Belgrade, Sofia, and Bucharest standing out as major tech centres . North Macedonia, in particular, is an emerging player in the outsourcing market. The country’s administration outsourcing market is projected to reach US$6.49 million in 2025 , and its business process outsourcing market is expected to grow by 5.22% from 2025 to 2029, resulting in a market volume of US$44.32 million by 2029. North Macedonia offers competitive labor costs and a well-educated, multilingual workforce, making it an attractive destination for outsourcing and nearshoring.
Key Outsourcing Statistics for 2025
With the rapid expansion of outsourcing, it’s no surprise that companies are allocating more funds to this strategy. In fact, 63% of organisations reported an increase in their outsourcing budgets over the past year, reflecting a growing emphasis on cost-effective solutions and specialised expertise.
Most Commonly Outsourced Functions
- Information Technology (IT) Services
– Includes software development, infrastructure management, and technical support.
– Around 37% of small businesses outsource IT services. - Customer Support
– Call centres, live chat, and email support.
– The Philippines and India remain top providers for this. - Accounting & Bookkeeping
– Payroll, invoicing, financial reporting, and tax preparation.
– 37% of companies outsource at least one part of their finance function. - Human Resources (HR)
– Recruitment, onboarding, benefits administration, and compliance.
– Especially common in mid-sized and enterprise-level businesses. - Digital Marketing
– SEO, social media management, content creation, PPC advertising.
– Many companies prefer working with external agencies for flexibility and expertise. - Manufacturing
– Product assembly, packaging, and quality control.
– Common in industries like electronics, textiles, and automotive. - Administrative Tasks
– Data entry, scheduling, virtual assistant services.
– A favourite among startups and solo business owners. - Legal Services
– Contract management, compliance review, legal research.
– Often outsourced to firms with specific regional or industry knowledge.
How Much Do Companies Spend on Outsourcing per Employee?
In 2025, companies are expected to spend an average of $115.46 per employee on business process outsourcing. Whether that’s considered high or low really depends on the type of service being outsourced. For example, IT and software development tend to be on the pricier side, while tasks like data entry or basic customer support come at a lower cost. Over the years, this number has gone up gradually, as more businesses are willing to invest in quality outsourcing — especially for roles that require specialised skills. The key takeaway: it’s not just about cutting costs anymore, it’s about getting the right value for your money.
Future of Outsourcing: Top Trends in 2025
New Outsourcing Frontiers: The Balkans and Beyond
As the outsourcing landscape evolves, more companies are exploring fresh alternatives to the usual top-tier countries — and the Balkans are quickly gaining attention. This region is proving to be a strong contender for future offshoring, offering a great mix of affordability, skilled labor, and solid infrastructure. Countries like North Macedonia, alongside others in the region, are just as capable as the more established players and are now being recognised as smart, strategic choices. For businesses looking ahead, these markets represent real opportunities that shouldn’t be overlooked.
The Rise of AI
AI and automation are quickly becoming a major part of the outsourcing world. In 2025, more companies are turning to AI-powered tools for things like customer support, data processing, and even content creation. These technologies help speed up workflows, reduce human error, and lower long-term costs. It doesn’t mean human jobs are gone — it just means the focus is shifting. Repetitive tasks are being handled by machines, while people are moving into roles that require more strategy, oversight, and creative thinking. This trend is only expected to grow as AI becomes more advanced and accessible across industries.
From Cost-Cutting to Value
This shift is one of the main reasons outsourcing budgets have gone up in recent years. Businesses are willing to pay more if it means getting better results. It’s not just about cutting costs anymore; it’s about choosing partners who can actually help improve performance and deliver real impact.
Growth of Impact Sourcing
Impact sourcing is a growing trend in the outsourcing world, and it’s all about creating job opportunities for people in underserved or disadvantaged communities. Companies are now choosing outsourcing partners that make a social impact — whether that’s by hiring from low-income areas, rural regions, or groups with limited access to stable employment. This approach not only helps communities grow, but also improves brand reputation and builds stronger, more loyal workforces.
What to Consider Before You Outsource
Outsourcing can offer significant benefits, but it’s not without its challenges. Studies indicate that 25% to 50% of outsourced projects fail or underperform, often due to common pitfalls that organisations encounter. Here are some of the most prevalent challenges:
- Unclear Expectations and Poor Planning
A significant number of outsourcing failures stem from inadequate planning and misaligned expectations between companies and their outsourcing partners. This lack of clarity can lead to misunderstandings, unmet objectives, and ultimately, project failure. - Communication Breakdowns
Effective communication is crucial in outsourcing relationships. However, 25% of outsourcing project failures are attributed to inadequate communication, which can result in delays, errors, and a lack of cohesion between teams. - Hidden Costs and Budget Overruns
While outsourcing is often pursued for cost savings, unexpected expenses can arise. Approximately 40% of companies report higher costs than anticipated due to hidden fees and unforeseen expenditures, undermining the financial advantages of outsourcing. - Performance and Quality Issues
Maintaining high performance and quality standards is a common concern. About 51% of companies express dissatisfaction with the performance of their outsourcing partners, citing issues like subpar deliverables and lack of accountability.
Conclusion
Outsourcing is constantly evolving, and the numbers tell a big part of that story. Staying up to date with the latest outsourcing statistics helps you see where the industry is headed — and where your business fits into it. Whether you’re planning your next move or rethinking your current strategy, these insights can help you make smarter, more informed decisions that actually pay off in the long run.