Discover some key outsourcing statistics you can use to guide your business practices.

The work of a marketer is complex

There are seemingly endless specialization and focus areas to spend your time on, such as SEO, social media, content, email, video, and interactive elements. With so many different strategies to tackle, modern marketers can easily get overwhelmed and not know how to proceed. One way a brand can support its marketing efforts is by outsourcing marketing. Outsourcing involves hiring outside staff or agencies to manage, implement and monitor various marketing tasks. This can take a lot of stress off of internal teams and ensure that goals are met, even with limited budgets or staff. However, if you are still on the fence about whether outsourcing makes sense, check out these outsourcing statistics. We will help you understand why outsourcing is a valuable avenue to explore, and provide some other key outsourcing statistics to help you learn more about outsourcing and how it can benefit your business.

First of all, what exactly is outsourcing?

1. 70% of outsourcing is for cost reduction
2. 36% of the US workforce is in the gig economy
3. In 2019, the global outsourcing market was worth $92.5 billion
4. Large brands outsource 66% more often than smaller brands
5. 37% of small businesses outsource a business process
6. Outsourcing solves the 5 problems small businesses face
7. 65% of companies that outsource plan to expand outsourcing
8. 93% of brands use cloud services to outsource better
9. 300,000 jobs are outsourced from the U.S. each year
10. 78% of companies have a positive relationship with their outsourcing partners

As mentioned earlier, outsourcing is based on finding external agencies or individuals who can help you manage your marketing tasks.

Many brands use outsourced agencies and companies to manage certain parts of their marketing strategies, such as SEO or social media, rather than hiring an internal employee or team of employees to handle those areas of the marketing plan.

When a brand supplements its marketing with outsourcing, it can reduce the burden and workload on internal team members and free up more time for higher-level tasks that require the input of the marketing team.

Outsourcing also allows brands to control costs and avoid slowdowns within their own marketing department.

Outsourcing statistics illustrate the real benefits that an outsourcing marketing strategy can bring to your brand.

The largest companies in the world use outsourcing to manage their marketing strategies, making it a worthwhile investment for brands large and small.

Let us dive into some of these outsourcing statistics now

1. 70% of outsourcing is for cost reduction

The main reason brands turn to outsourcing in their marketing strategies is to reduce costs. Think of it this way: If you hire an agency to manage your search engine optimization (SEO) for $500/month, that’s a much lower cost than hiring an internal employee to handle SEO in-house. 70% of brands that use outsourcing cite cost reduction as the main reason. The second most important reason is flexibility: 40% of companies say this is important to them, and the third most important reason is speed: 20% of companies cite this as their top priority for outsourcing.

2. 36% of U.S. employees are in the gig economy

The gig economy refers to freelancers and short-term contract employees who work from gig to gig to earn a living. These individuals are responsible for a significant amount of outsourced work, particularly in areas such as design, visual development, and website creation. Freelancers enjoy working in the gig economy because it gives them more autonomy and freedom with their schedules and projects. The large share of the workforce in the gig economy means that there is a wide range of people looking for reliable outsourcing.

3. In 2019, the global outsourcing market was valued at $92.5 billion

Outsourcing statistics from 2019 show us that the global outsourcing market is worth an incredible amount of money, over $90 billion. Most of this market share is accounted for by the Americas and the United States in particular. The global value of outsourcing continues to grow, and with new outsourcing statistics available from recent years, we can expect the total value to increase significantly.

4. Large brands outsource 66% more frequently than smaller brands

Although outsourcing is beneficial for brands and organizations of all sizes, large companies are more likely to outsource their marketing and other business functions such as IT or customer service.

One reason for this could be that large companies have a larger budget for outsourcing, while smaller companies with fewer employees still want to keep things in-house as they grow and expand.

5. 37% of small companies outsource a business process

While larger companies are more likely to outsource, there’s still a significant percentage of small companies that outsource at least one key business process. Even if it’s not marketing, small businesses can benefit from outsourcing their IT, accounting, customer service, or even sales or administrative tasks. This helps them manage their tasks without overwhelming internal teams or breaking the budget for hiring new employees.

6. Outsourcing Solves the five little Business issues

Small businesses face a similar major challenges, the highest 5 of that break down as such:

• Hiring new staff
• Increasing profit
• Employee care
• Growing revenue
• Managing income

Outsourcing helps to manage and solve all 5 of those major considerations. By hiring a 3rd party, little businesses don’t have to be compelled to rent internal staff or cowl care for them. It additionally helps manage income by reducing prices and increasing profit whereas growing revenue.

7. Sixty fifth of companies that source commit to Increase Outsourcing

Ever marvel if the businesses that have outsourced within the past notice worth within the process? Well, this outsourcing datum would possibly shed some lightweight on the case. sixty fifth of companies that have used outsourcing within the past or presently use outsourcing currently arrange on increasing their outsourcing efforts. It goes to point out that after a corporation sees the advantages of outsourcing, it’s onerous to resist or avoid doing it even additional for alternative areas of the business. The monetary advantages, speed, and adaptability of outsourcing create a bearing on the brands that commit to provides it a strive.

8. Ninety three of Brands Use Cloud Services to source higher

If you’ve ne’er tried outsourcing before, it are often troublesome to imagine however you’d manage the link. Outsourcing are often optimized and improved through the utilization of cloud-based services that connect the complete to its outsourcing partners in period. Cloud solutions facilitate keep brands up to speed of their outsourced practices and make sure that they need insight into what’s being done.

Shared cloud platforms increase the visibility into what third-party outsourcers do and permit the corporate to administer and manage those efforts at a high level. Cloud-based services additionally keep communication constant, which might facilitate scale back any lingering fears of uncertainty or security.

9. 300,000 Jobs square measure Outsourced from the United States of America each year

If you’ve ever questioned precisely what percentage jobs square measure outsourced vs unbroken internal, then look no additional than this outsourcing datum. The us outsources as several as three hundred,000 jobs every and each year. a number of those jobs go overseas and a few keep internal to freelancers and people within the gig economy. While some Americans would possibly read this as job loss to overseas people, the reality is far additional sophisticated.

While sure jobs square measure outsourced, there’s a rise in several jobs, typically at a better level, that also have to be compelled to be completed in-house. Strategic, management, and development jobs usually stay internal to a corporation instead of being outsourced to a distinct third-party partner.

10. Seventy eight of companies Have a Positive Relationship with Outsourcing Partners

No partnership is ideal, which applies to outsourcing partnerships furthermore. there’ll continually be times once things aren’t done right or frustrations occur. However, a big majority of brands believe that their partnerships with outsourcing partners square measure positive.

Nearly eightieth of brands that use outsourcing square measure happy and happy with the link they need with their outsourcing partners. That contributes to the high variety of brands that wish to extend their outsourcing and notice it to be a valuable a part of their business ways. When brands recognize that they will have confidence their outsourcing partners, it reduces internal stress and creates a way more practical and productive operating atmosphere.

Wrap up

Outsourcing are often a valuable avenue for brands to explore. As our outsourcing statistics have shown, it will assist you scale back prices, get additional flexibility, unencumber time for internal groups, and assist you come through your promoting goals. Using outsourcing statistics to assist you develop your understanding of the worth of outsourcing will go an extended method in making data concerning the advantages outsourcing will bring.

One space that outsourcing will very facilitate with is content. Content production are often overwhelming for internal groups, particularly if you wish to publish regular blogs and original social media posts. Outsourcing content will assist you sustain with production and scale back internal stress.

To learn additional, check up on our web log on why you ought to source content! You’ll examine however you’ll be able to produce associate degree outsourcing content arrange and gain unimaginable results through content outsourcing. initiatives and techniques.