Discover 10 Outsourcing Stats that Generate Better Business Plans for Brands
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 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, these outsourcing statistics can help. They highlight why outsourcing is a valuable avenue to explore and provide insights into how it can benefit your business.
First of All, What Exactly Is Outsourcing?
Outsourcing is based on finding external agencies or individuals who can help you manage your marketing and business 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.
Key Outsourcing Statistics
- 70% of outsourcing is for cost reduction.
- 36% of the U.S. workforce is in the gig economy.
- In 2019, the global outsourcing market was worth $92.5 billion.
- Large brands outsource 66% more often than smaller brands.
- 37% of small businesses outsource a business process.
- Outsourcing helps solve five major challenges faced by small businesses.
- 65% of companies that outsource plan to expand their outsourcing efforts.
- 93% of brands use cloud services to outsource more effectively.
- 300,000 jobs are outsourced from the U.S. each year.
- 78% of companies have a positive relationship with their outsourcing partners.
Let’s Dive Into Some of These Outsourcing Statistics
1. 70% of Outsourcing Is for Cost Reduction
The main reason brands turn to outsourcing in their marketing strategies is to reduce costs. For example, hiring an agency to manage search engine optimization (SEO) at a fixed monthly cost can be significantly less expensive 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, with 40% of companies considering it important. Speed is the third major factor, with 20% of companies citing it as a 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 project to project. These individuals are responsible for a significant amount of outsourced work, particularly in areas such as design, visual development, and website creation.
Freelancers benefit from the autonomy and flexibility of gig work, while brands gain access to a broad pool of skilled professionals looking for reliable outsourcing opportunities.
3. In 2019, the Global Outsourcing Market Was Valued at $92.5 Billion
Outsourcing statistics from 2019 show that the global outsourcing market was worth an incredible amount, exceeding $90 billion. A significant share of this market was accounted for by the Americas, particularly the United States.
The global value of outsourcing continues to grow, and newer outsourcing trends indicate that the market is likely to expand further.
4. Large Brands Outsource 66% More Frequently Than Smaller Brands
Although outsourcing is beneficial for 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 may be that large companies have larger budgets for outsourcing, while smaller companies with fewer employees may prefer to keep functions 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 is still a significant percentage of small companies that outsource at least one key business process.
Even when it is not marketing, small businesses can benefit from outsourcing IT, accounting, customer service, sales, or administrative tasks. This allows them to manage important functions without overwhelming internal teams or exceeding their hiring budgets.
6. Outsourcing Helps Solve Five Major Business Challenges
Small businesses commonly face several major challenges, including:
- Hiring new staff.
- Increasing profit.
- Employee management and care.
- Growing revenue.
- Managing income and cash flow.
Outsourcing can help address all five of these challenges. By working with a third-party partner, small businesses can reduce the need to hire additional internal staff, control operating costs, improve profitability, and create more opportunities for revenue growth.
7. 65% of Companies That Outsource Plan to Increase Their Outsourcing
Ever wondered whether companies that have outsourced in the past actually see value in the process? This statistic provides a clear indication.
65% of companies that have used outsourcing or currently use outsourcing plan to increase their outsourcing efforts. Once a company experiences the benefits of outsourcing, it can be difficult to resist expanding those efforts into other areas of the business.
The financial benefits, speed, and flexibility of outsourcing can have a significant impact on brands that choose to adopt it.
8. 93% of Brands Use Cloud Services to Outsource More Effectively
If you have never tried outsourcing before, it can be difficult to imagine how you would manage the relationship with an external partner. Outsourcing can be optimized through cloud-based services that connect brands with their outsourcing partners in real time.
Cloud solutions help brands stay in control of their outsourced activities while maintaining visibility into ongoing work.
Shared cloud platforms improve transparency, allow companies to manage third-party activities more effectively, and help maintain consistent communication. They can also reduce uncertainty and improve collaboration between brands and outsourcing partners.
9. 300,000 Jobs Are Outsourced From the United States Each Year
The United States outsources as many as 300,000 jobs each year. Some of these jobs are outsourced overseas, while others are handled by freelancers and professionals within the gig economy.
While outsourcing can sometimes be viewed as a loss of domestic jobs, the reality is more complex. As certain tasks are outsourced, companies often continue to require higher-level strategic, management, and development roles internally.
10. 78% of Companies Have a Positive Relationship With Outsourcing Partners
No partnership is perfect, and that applies to outsourcing relationships as well. There will always be situations where expectations are not met or frustrations occur. However, a significant majority of brands consider their relationships with outsourcing partners to be positive.
Nearly 78% of brands that use outsourcing are satisfied with their relationships with their outsourcing partners. This contributes to the growing number of brands that want to expand outsourcing and view it as a valuable part of their business strategies.
When brands know they can rely on their outsourcing partners, it reduces internal stress and creates a more efficient and productive working environment.
Wrap Up
Outsourcing can be a valuable avenue for brands to explore. As these outsourcing statistics have shown, it can help reduce costs, provide greater flexibility, free up time for internal teams, and support marketing and business goals.
Using outsourcing statistics to understand the value of outsourcing can go a long way toward recognizing the benefits it can bring to your organization.
One area where outsourcing can be particularly valuable is content. Content production can be overwhelming for internal teams, especially when brands need to publish regular blogs and original social media posts.
Outsourcing content production can help brands maintain a consistent publishing schedule, reduce internal stress, and scale their content efforts more efficiently.