US IT outsourcing Statistics 2021
Table of content:
- Key It Outsourcing Statistics for United States
- Tech Talent Shortage Statistics
- it outsourcing trends in 2021
- most frequently outsourced processes in 2021
- Software outsourcing Hotspots
- future of it outsourcing
- India is increasing and needs corresponding growth in infrastructure
Key It Outsourcing Statistics for the United States
- 54% of the companies are choosing to outsource their work in 2021
- 60% of workers do freelance in the US
- Nearly 80% of businesses all over the world have great trust in their outstanding partners.
- 70% of financial service executives offshore or offshore some of their services.
- A survey by McKinsey’s shows nearly 87% of companies are experiencing a talent shortage.
- Approx. 300,000 jobs outsourced out of the US every year.
- The global market size for outsourcing reached $92.5 billion before the pandemic.
- More than 90% of companies moved to cloud services to improve outsourcing.
Tech Talent Shortage Statistics
- Manpower Group revealed that nearly 69% of US employers face issues to fill positions.
- The pandemic affected the American tech market. Therefore, 92% of companies shifted to cloud workloads.
- The US IT industry ranked 13.2% of staff turnover, which is the highest among all industries.
- By 2026, the Bureau of labour statistics exceeds 1.2M, where 545k software developers left the market.
- Due to the IT talent shortage closing, nearly 30% candidates feel the software architect position is left out and 40% of DevOps job openings meet the employer’s needs.
- 50% of businesses hire tech employees and the mismatch between actual skill, quality of products, and services decreases.
- With a shortage of overwhelming developers, there is an increase in the growth of software developer salaries. The median computer salary in the US is more than $100k a year, where states are two times larger than average regional pay.
IT outsourcing trends in 2021
AI, IoT, Blockchain, and Robotic Process Automation
- Based on IDC research, Blockchain is expected to reach USD 11.7 billion by 2022.
- A global market is predicted to reach $190.61 billion market value by 2025.
- The AI chip market revenue is predicted to reach $84 billion by 2027.
- Nearly 93% of automation technologies feel prepared for upcoming challenges regarding innovative machine technologies.
Growth of the Cloud Services
- The cloud market is going to $289 billion by 2021, based on the Gartner Revenue Forecast.
- The hosting, computing cloud service market, and storage were estimated by 2021 to be growing by $163.
- The Cloud Service grows by 2017 with reaching $1.8 billion. In 2018, the GDP of 7.2% had cloud storage statistics with the reveal.
- The CAGR cloud services are projected to be 24% within the 2020-2025 period.
- AWS has over 1,000,00 active users, with the public cloud service market predicted to be $331.2 billion by 2022.
- The average cloud budget increased by $75 million by 2020, which is pretty much the company’s average cloud budget.
- Nearly 70% of companies are not prepared for cyberattacks which result in a cybersecurity skill shortage.
- The average cost of a data breach predicts $3.86 million by 2020.
- By 2020, malware will increase by 358% and cybercrime will cost $10.5 trillion by 2025.
- The internet-connected devices are expected to increase by 31 billion to 35 billion by 2021, with a prediction of 75 billion by 2025.
- Any new organization falls victim every 14 seconds in the year 2019 and has lowered to 11 seconds by 2021.
- In the recent tech spending areas, by 2021, it’s expected to increase augmented reality, virtual reality, artificial intelligence, Internet of things, and Cloud.
- The digital leader by 2021 will mix low-code and integrate technologies to improve employee and customer experience in more business areas at a greater scale.
- The spending on digital transformation services and technologies spread from 2017 to 2024, rising from 3 trillion US dollars.
- IoT comes with the largest share with the overall digital transformation market in 2019, where AR/VR technology predicted the fastest growth by 2025.
- Nearly 87% of companies think digital is disrupting the industry, and 44% are getting prepared for the potential digital disruption.
Check Out Digital Transformations in 2021
- The world, by 2024, would cover nearly 40% 5G network and currently 25% of mobile traffic data handling.
- Deploy Fiber optic cabling to enable a 5G network by 2021 with an estimated cost between $130-$150 billion.
- The global 5G services market size value is USD 41.48 billion by 2020 based on the granviewsearch team and is expected to grow at 46.2% from 2021 to 2028.
- Based on an estimate nearly, 400 million IoT devices were cellular-connected in 2016 and are predicted to reach 1.5 billion in 2022.
AR VR Market Growth
- The market size of AR and VR is forecast to hit about $18.8 billion by 2020.
- Virtual reality growth is observed by 21.6% from 2020 to 2027.
- AR VR shows increased demand for devices of 5.5 million shipped to customers worldwide in coming years.
- 58.9 million people use VR and nearly 93.3 million use AR for a month in the US in 2021.
- The technology insight largest revenue share is over 80% in 2020 and anticipates registering the highest CAGR from 2021 to 2028.
Remote work statistics
- Based on Boston Consulting Group, nearly 75% of employees feel to have improved productivity.
- This year, nearly 81% of workers have more loyal employees with flexible work options adding remote work.
- Few estimates show to save employees approx. $ 11,000 to work from home.
- 80% have a flexible job that manages employees to help them overcome mental health.
Focus on Service Quality
- 89% of businesses today expect complete satisfaction on customer experience.
- 55% of customers have higher expectations from customer service, which has jumped to nearly 66% for the age group of 18-34.
- 96% of customer service plays a vital role for the customer looking for loyalty to their brand.
- 90% of customers are influenced by positive reviews when buying a product.
- In 2021, 99% of customer experience management gave a positive impact on business.
Most frequently outsourced processes in 2021
- Nearly 25% of organizations increase outsourcing efforts in 2021.
- 70% of the IT market worth originates from outsourcing by the end of 2021.
- 45% of HR outsourcing stats imply HR Consultant followed by time tracking and insurance service.
- 75-80% finish manufacturing products are outsourced where the company’s minimum wage is $160-$358 per month.
- When we talk about the banking industry, 40% of help desk positions are outsourced.
Software outsourcing Hotspots
- The market size has grown to nearly 54%, where companies use third-party support teams to connect with customers.
- 71% of financial service executives outsource some of their services.
- 65% of businesses outsource application hosting, which increases their outsourcing efforts in the future.
- 50% of employers found outsourcing services best for growing their businesses.
Future of it outsourcing
- The analyst predicts that the industry continues to fight short-term and get more flexible pricing contracts.
- Some buyers seek standardized solutions from outsourcing engagement through performance rather than pricing.
- Industry experts predicted that American and Europe would have new outsourcing destinations in the future.
- The consumption-based technologies delivered through the Cloud are very cost-effective. Few analysts predict that European carmakers would be starting to outsource their business soon.
- The global outsourcing market will continue to move ahead with making its outsourcing presence in Russia and Brazil.
India is increasing and needs corresponding growth in infrastructure.
- With the rise in labour cost, companies move towards smaller Tier-II cities.
- Political crises in the market of the UK and US results in outsourcing restrictions placed in place.
- Today, India continues to become a world leader in the outsourcing business. It faces tougher challenges shortly for counties like the Philippines, Vietnam, Malaysia, Indonesia, Singapore, and others to improve their position as an alternative offshore location.
The companies mainly focus on bringing manufacturing, and other outsource industries back to American soil. The above outsourcing statistics show an obvious split between small to large businesses with emerging technologies like the Cloud and robotic automation changing the market.
As outsourcing is likely to grow globally, the function outsources the companies which rely on the change. The operations move in-house while the other sectors like software development and maintenance remain outsourced.
Talk to our experts and find out how your business or project can start benefiting from our outsourcing services.