Software outsourcing stats and trends for 2020 Let us take a look at some eye-catching stats and trends related to software outsourcing.

software outsource company

Software outsourcing stats

In the world of digitalization and rapidly evolving software technology, the need for new, efficient, cost-effective software and outsourcing software development has increased. Another reason behind this is that there is a technical solution to almost every day to day problems. From clothes to food and business insights to invoicing everything is just a matter of clicks now.


Due to this, outsourcing has been around for quite some time, as companies always look for cost-efficient ways to manage specific business processes off-site. Earlier, companies used to outsource only certain things like customer support, accounting, recruitment etc. But now, firms have also started software outsourcing.


The reason why American and Western European companies outsource tech jobs is that because of the talent shortage, high development costs and the cut-throat competition on the employment market. This has led to the shift from cost-efficient to cost-and-quality-driven approach while choosing a tech vendor has opened the doors for the software outsourcing companies in India.

Let’s start with 


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Top stats related to software outsourcing for 2020 and years to come.

  • APAC held the most significant IT outsourcing market share in 2019.

The Asia Pacific region or the APAC held the largest market share in 2019. The area is expected to provide several growth opportunities to market vendors during the forecast period, i.e., 2020-2024.

The growth in IT outsourcing from APAC is expected to be 37% in 2020 and in the years to come wherein India, Japan and China are the key markets. 


  • The contract value of the information technology outsourcing market worldwide 2000-2019.

In 2019, the global market size of Information Technology Outsourcing (ITO) amounted to $66.5 billion. Another survey says that 70% of technology companies in the UK are expected to face a talent shortage in the next 12 months. 

The largest economy of the world, the United States of America, also faces a shortage of technology talents. Gartner, a global research and advisory firm, predicts that 1.4 million computer specialists’ job vacancies are on the rise of this year.


  • India’s IT service market to reach $14.3 Billion in 2020. 

India being the top choice of companies looking for outsourcing, the IT and business service market, is predicted to reach $14.3 Billion by the end of 2020. 


The above infographic clearly shows how the Indian software market is the major part of the country’s economy. Another reason to believe this is that in the financial year of 2019, the software development companies in India generated revenue close to 180 Billion USD.

software outsourcing stats

  • The International Data Corporation (IDC) predicts the IT services in India to grow at a compound annual growth rate of 8.6% during the forecast period 2020-2023.

Another fantastic stat to look at is that the Indian Brand Equity Foundation (IBEF) has predicted that the Indian software and IT industry will successfully achieve a target revenue of $350 Billion by the financial year 2025.

software outsourcing stats 2020

  • In a survey held by Deloitte, 78% of the respondents felt positive about their outsourcing relationships. 

Almost every major company has invested in software outsourcing. This is why 65% of the firms that have outsourced in 2017 are likely to continue to do so in future. 



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Another question that arises here is why companies feel the need to outsource?


software outsourcing stats and facts


  • 59% of companies outsource for cost-cutting.
  • 57% of companies outsource to focus on business objectives.
  • 47% of companies outsource to solve capacity related issues.
  • 31% of companies outsource to enhance service quality.
  • 28% of companies outsource due to critical business needs.
  • 17% of companies outsource to manage business environments.
  • 17% of companies do outsourcing to drive broader transformational changes.


 Major tech and IT updates:

  • Nasscom, a trade association of Indian Information Technology and Business Process Outsourcing Industry, has launched an online platform. The main aim of this platform is to train and up-skill over 2 million technology professionals and another 2 million students and potential employees. 


  • In February 2020, Tata Consultancy Services bagged a project worth $1.5Billion from a renowned pharma company Walgreens Boots Alliance.


  • Infosys has acquired a 75% stake in ABN AMRO bank’s subsidiary Stater. This stake accounts for $143.08 Billion.


  • In January 2020, Nippon Telegraph and Telephone, a renowned Japanese tech company, announced its plans to invest a significant part of its $7 billion global commitment for data centres business in India over the next four year (2020-2024).


Now, let us take a look at trends that are expected to emerge in the year 2020 and boost the outsourcing industry.


Software Development Outsourcing Trends to Emerge in 2020.

The outsourcing industry continues to evolve, and like every year, there are specific trends that have been predicted to perform well this year. The trends are as follows:


  • Robotics Process Automation(RPA)

Artificial Intelligence is becoming the first choice of almost every business owner. The use of AI and other advanced technologies to automate processes is rising. There is a prediction that by 2030, 40% of the jobs in the US will be automated. 

In the context of outsourcing, your business process outsourcing (BPO) company has to maintain the balance between delegating smaller tasks to bots and non-repeatable roles to humans. 


  • Social media as a channel to interact with a customer:

In the digital world where almost everyone uses social media, it becomes easy for software outsourcing companies to find their potential customers. This is because Facebook alone has 2.3billion active users. 

Also,  software outsourcing companies in India are experts in using social media tools and features to help you generate business.


  • Cloud Computing:

The digital world is making it possible for businesses to deal with tons of data collected from customers. Even if you are a small business, you need to backup your data safely. This is where IT outsourcing companies come into action. 

With cloud computing, you can rent out your provider’s IT infrastructure on the pay-per-usage basis to accommodate your server, storage or networking needs. All this without having to invest a large sum for developing or owning an in-house technology.


Summing Up:

Software outsourcing has opened the door to many jobs and opportunities for the talented youth of a country. It has also benefited the businesses in many ways the most prominent one from them is “cost-cutting”. But globally speaking, the outsourcing market is very competitive. Every year there is a change in the ranking of a country. 

While every outsourcing expert country is trying hard to gain the top spot as a prime outsourcing destination, there are only a few perennial powerhouses that should be considered. If you also own a business and want to outsource your software, then you must get in touch with the best outsourcing software development companies in India because only an expert can help you come up with the best results.


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