In the business, the term Outsourcing refers to the contracting out of a business process to a third-party and near the turn of 21st century; the term Outsourcing has become most popular in the United States of America. Sometimes it involves transferring of assets and employees from the one firm to another but it is not practiced all the time. Outsourcing includes not only the domestic but it also includes the foreign contracting.
Outsourcing Statistic Report 2014
| Outsourcing Statistics | |
|---|---|
| Overall Number of U.S. jobs offshore outsourced during 2013 | 2,637,239 |
| Percentage of the CFO’s surveyed who said that their firm was currently offshore outsourcing | 36% |
| CFO’s who favored India for outsourcing percentage | 26% |
| CFO’s who favored China for outsourcing | 18% |
Offshore Outsourcing Around The World
Offshore outsourcing is an activity in which the external organization is hired just to perform some business tasks within a country other than the countries where the products and services are actually produced. Opponents point out that the practice of sending business jobs from one country to the other country with the highest wages are the big factor reducing their own domestic employment rates and the investments.
Key Advantages of Outsourcing At a Glance
One major advantage of Job Outsourcing is the availability of lower costs, better availability of skilled individuals and the given work can be obtained faster through the global talent pool.Numerous customer services jobs and the jobs in the information technology sector such as computer programming, data processing and technical support in the different countries such as United Kingdom and United States have been or are probably affected. Following is a statistic report for the Offshore Outsourcing by sector showing the percentage of different companies.
| Offshore Outsourcing By Sector | Percentage of Companies |
|---|---|
| Manufacturing | 53 % |
| IT Services | 43 % |
| R&D | 38 % |
| Distribution | 26 % |
| Call or Help Centers | 12 % |
There are number of factors for which the different companies and countries prefer Job Outsource. Low cost and quality work in the given time are the major factors behind its increasing trend. Following table is showing the different factors by percentage.
| Factors involved that cause Companies Outsource | Percentage |
|---|---|
| Reduction and control in job costs | 44 % |
| Gain access to the IT resources unavailable internally | 34 % |
| It helps to free up the internal resources | 31 % |
| Best for improving the business or Customer Focus | 28 % |
| Much Essential for the Global Recolonization of Company | 22 % |
| Accelerates the Projects | 15 % |
| Gain access to management strategies unavailable internally | 15 % |
| Reduce the Time to the Market | 9 % |
[box type=”info” style=”rounded”]
Question of the Day
Do you know what are the Top Rated Outsourcing Countries in the world?
There are number of countries which are famous as the top rated Outsourcing Countries around the world. Following is a list of such countries. This list includes the overall rating, resources, skills, workforce and cost index.
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List of Top Rated Outsourcing Countries in the world
| Serial No. | Country | Overall Rate |
Cost Index | Resources | Work Force |
|---|---|---|---|---|---|
| 1. |  India |
7.1 | 8.3 | 6 | 1,430,000,000 |
| 2. |  Indonesia |
6.9 | 8.6 | 4.3 | 1,033,000,000 |
| 3. |  China |
6.4 | 7 | 5.6 | 780,000,000 |
| 4. |  Bulgaria |
6.4 | 8.8 | 2.9 | 3,000,000 |
| 5. |  Philippines |
6.3 | 9 | 2.8 | 39,000,000 |
| 6. |  Jordan |
6.2 | 7.6 | 2.7 | 2,000,000 |
| 7. |  Singapore |
6.5 | 6.4 | 5.7 | 3,000,000 |
| 8. |  Thailand |
6 | 8.2 | 2.3 | 39,000,000 |
| 9. |  Lithuania |
5.9 | 7 | 3.9 | 2,000,000 |
| 10. |  Egypt |
5.8 | 9 | 0.9 | 26,000,000 |
| 11. |  Malaysia |
5.8 | 7.9 | 2.2 | 12,000,000 |
| 12. |  Estonia |
5.8 | 7.5 | 5.2 | 1,000,000 |
| 13. |  Chile |
5.7 | 7.2 | 3 | 8,000,000 |
| 14. |  Hungary |
5.6 | 6.9 | 3.4 | 4,000,000 |
| 15. |  Poland |
5.6 | 6.1 | 3.6 | 17,000,000 |
| 16. |  Czech Republic |
5.6 | 6.9 | 3.2 | 5,000,000 |
| 17. |  Ukraine |
5.5 | 6.3 | 3.2 | 22,000,000 |
| 18. |  Romania |
5.5 | 6.8 | 2.7 | 9,000,000 |
| 19. |  Latvia |
5.4 | 7 | 2.7 | 1,000,000 |
| 20. |  Vietnam |
5.4 | 7.4 | 2.5 | 46,000,000 |
| 21. |  Ghana |
4.9 | 7.5 | 0.9 | 11,000,000 |
| 22. |  South Africa |
4.6 | 6.9 | 0.6 | 17,000,000 |
| 23. |  Kenya |
4.5 | 6.7 | 1.3 | 18,000,000 |
| 24. |  Senegal |
4.3 | 7.1 | 0.2 | 6,000,000 |
[box type=”tick” style=”rounded”]Currently India is the second most populated country in the world, Although it has the largest Hindu population in the world yet it is the second largest Muslim country in the world. it is the Top Rated Outsourcing Country in the world with the overall rating of 7.1.[/box]
Also See :
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- Forbes Best and Worst Countries for Business Statistics
- Top 10 Richest People in the World
- Top 10 Richest Countries in the World
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- Top 10 Fast Food Restaurants in the world
- Top 10 Countries That Censor the Internet
- Top 10 Largest Cities in the World by Population
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- Top Ten Countries Earning Most from Tourism in the World
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