{"id":12148,"date":"2020-05-22T06:52:27","date_gmt":"2020-05-22T10:52:27","guid":{"rendered":"https:\/\/www.pixelcrayons.com\/blog\/?p=12148"},"modified":"2025-04-23T02:55:13","modified_gmt":"2025-04-23T06:55:13","slug":"software-outsourcing-stats-and-trends","status":"publish","type":"post","link":"https:\/\/www.pixelcrayons.com\/blog\/software-development\/software-outsourcing-stats-and-trends\/","title":{"rendered":"Latest Software Outsourcing Stats and Trends"},"content":{"rendered":"<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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 problem. From clothes to food and business insights to invoicing, everything is just a matter of clicks now.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">American and Western European companies outsource tech jobs because of the talent shortage, high development costs, and cut-throat competition in the employment market. This has led to the shift from a cost-efficient to cost-and-quality-driven approach, while choosing a tech vendor has opened the doors for the <\/span><a href=\"https:\/\/www.pixelcrayons.com\/?utm_source=PC%2Bsoftwarestat&amp;utm_medium=rawat%2Btosh&amp;utm_campaign=lead\">software outsourcing companies in India<\/a>.<\/p>\n<p><b>Let\u2019s start!<\/b><\/p>\n<hr \/>\n<div class=\"cust-secton1 padd-all margin-40\"><div class=\"banner-logo\"><a href=\"https:\/\/www.pixelcrayons.com\/\" data-wpel-link=\"internal\">\n        <img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.pixelcrayons.com\/blog\/wp-content\/themes\/pxlblog-v2\/menu-images\/logo-v2-white.svg\" alt=\"Logo\" width=\"95\" height=\"29\">\n        <\/a>\n      <\/div><div class=\"dis-flex\"><div class=\"colleft\"><div class=\"pb-heading\">Falling behind on software development?<\/div><p>Stay ahead with our cutting-edge outsourcing services!<\/p><\/div>\n    <div class=\"colrit\">\n      <div class=\"text-center btn-container\"><a href=\"https:\/\/www.pixelcrayons.com\/contact-us \" class=\"banner-btn\"  target=\"_blank\">Contact Us<\/a><\/div>\n    <\/div>\n    <\/div><\/div>\n<hr \/>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.pixelcrayons.com\/blog\/software-development\/software-outsourcing-stats-and-trends\/#Top_Stats_Related_to_Software_Outsourcing_for_2021_and_Years_to_Come\" >Top Stats Related to Software Outsourcing for 2021 and Years to Come<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.pixelcrayons.com\/blog\/software-development\/software-outsourcing-stats-and-trends\/#_Major_Tech_and_IT_Updates\" >\u00a0Major Tech and IT Updates:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.pixelcrayons.com\/blog\/software-development\/software-outsourcing-stats-and-trends\/#Software_Development_Outsourcing_Trends_to_Emerge_in_2021\" >Software Development Outsourcing Trends to Emerge in 2021<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.pixelcrayons.com\/blog\/software-development\/software-outsourcing-stats-and-trends\/#Summing_Up\" >Summing Up:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.pixelcrayons.com\/blog\/software-development\/software-outsourcing-stats-and-trends\/#i\" >\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Top_Stats_Related_to_Software_Outsourcing_for_2021_and_Years_to_Come\"><\/span><span style=\"font-size: 28px;\"><b>Top Stats Related to Software Outsourcing for 2021 and Years to Come<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>\n<h3><span style=\"font-size: 24px;\"><strong>APAC Held the Most Significant IT Outsourcing Market Share in 2019<\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Revenue in the division IT Outsourcing is predicted to reach US$77,782.0m by the end of 2021.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-size: 24px;\"><strong>The contract value of the information technology outsourcing market worldwide 2000-2019<\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In 2019, the global market size of Information Technology Outsourcing (ITO) amounted to $66.5 billion. Another survey says that <\/span><a href=\"https:\/\/www.outsourcinginsight.com\/information-technology-it-outsourcing-trends\/\"><span style=\"font-weight: 400;\">70%<\/span><\/a><span style=\"font-weight: 400;\"> of technology companies in the UK are expected to face a talent shortage in the next 12 months.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The largest economy globally, the United States of America, also faces a shortage of technology talents. Gartner, a global research and advisory firm, predicts that 1.4 million computer specialists\u2019 job vacancies are on the rise this year.<\/span><\/p>\n<hr \/>\n<ul>\n<li style=\"text-align: left;\">\n<h3><span style=\"font-size: 24px;\"><span style=\"font-weight: 400;\">\u00a0<\/span><strong>India\u2019s IT Service Market to Reach US$ 98.5B in 2022<\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The domestic profits of the IT industry are predicted at<\/span><a href=\"https:\/\/www.ibef.org\/industry\/information-technology-india.aspx\"><span style=\"font-weight: 400;\"> US$ 45B<\/span><\/a><span style=\"font-weight: 400;\">, and export revenue is predicted at US$ 150B in FY21. As per Gartner, IT spending in India is supposed to reach <\/span><b>US$ 93B<\/b><span style=\"font-weight: 400;\"> in 2021 and a further boost toUS$ 98.5B in 2022.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">As per the <\/span><a href=\"https:\/\/www.idc.com\/in?utm_source=press-release&amp;utm_medium=website&amp;utm_campaign=idc-india\"><span style=\"font-weight: 400;\">IDC<\/span><\/a><span style=\"font-weight: 400;\"> (International Data Corporation) <\/span><a href=\"https:\/\/www.idc.com\/tracker\/showproductinfo.jsp?containerId=IDC_P25240&amp;utm_source=press-release&amp;utm_medium=website&amp;utm_campaign=idc-india\">Worldwide Semiannual Software Tracker<\/a> 2H20, the Indian software marketplace is predicted to reach US$7.6B by the end of CY21. This will definitely increase the demand for <a href=\"https:\/\/www.pixelcrayons.com\/services\/software-development?utm_source=PC%2Bsoftware&amp;utm_medium=rawat%2Btosh&amp;utm_campaign=lead\">software development companies in India<\/a><span style=\"font-weight: 400;\"> in the upcoming time.\u00a0<\/span><\/p>\n<ul style=\"text-align: left;\">\n<li style=\"font-weight: 400;\">\n<h3><span style=\"font-size: 24px;\"><strong>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<\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: left;\"><span style=\"font-weight: 400;\">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<\/span><a href=\"https:\/\/www.ibef.org\/industry\/information-technology-india.aspx\"><span style=\"font-weight: 400;\"> $350 Billion by the financial year 2025.<\/span><\/a><\/p>\n<ul>\n<li>\n<h3><span style=\"font-size: 24px;\"><strong>In a survey held by Deloitte, 78% of the respondents felt positive about their outsourcing relationships<\/strong><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Almost every major company has invested in software outsourcing. This is why<\/span><a href=\"https:\/\/www.outsourcinginsight.com\/outsourcing-trends\/\"><span style=\"font-weight: 400;\"> 65%<\/span><\/a><span style=\"font-weight: 400;\"> of the firms that have outsourced in 2017 are likely to continue to do so in the future.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Outsourcing generates massive employment across numerous developing nations, including Ukraine, India, the Philippines, Poland, China, etc. Around 300,000 jobs are outsourced from the United States to these nations on an annual basis. [<\/span><a href=\"https:\/\/www.smallbizgenius.net\/by-the-numbers\/outsourcing-statistics\/#gref\"><span style=\"font-weight: 400;\">Smallbizgenius<\/span><\/a><span style=\"font-weight: 400;\">]<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">37% of small businesses presently outsource at minimum one of their business services. Nevertheless, it is companies with over 50 employees that are 66 percent more inclined to outsource their business processes. [<\/span><a href=\"https:\/\/clutch.co\/bpo\/virtual-assistants\/resources\/small-business-outsourcing-statistics\"><span style=\"font-weight: 400;\">Clutch<\/span><\/a><span style=\"font-weight: 400;\">]<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite, or maybe due to the COVID-19 pandemic, the portion of the funds IT departments use on outsourcing proceeded to increase from 12.7% in 2019 to 13.6% in 2020.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: left;\"><b> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-16954 \" src=\"https:\/\/www.pixelcrayons.com\/blog\/wp-content\/uploads\/2020\/05\/companies-outsource.png.webp\" alt=\"companies-outsource\" width=\"680\" height=\"374\" srcset=\"https:\/\/www.pixelcrayons.com\/blog\/wp-content\/uploads\/2020\/05\/companies-outsource.png.webp 512w, https:\/\/www.pixelcrayons.com\/blog\/wp-content\/uploads\/2020\/05\/companies-outsource-300x165.png.webp 300w\" sizes=\"auto, (max-width: 680px) 100vw, 680px\" \/><\/b><\/p>\n<p><em><span style=\"color: #993300;\"><span style=\"font-weight: 400;\">Another question that arises here is <\/span><b>why companies feel the need to outsource?<\/b><\/span><\/em><\/p>\n<ul style=\"text-align: left;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">59% of companies outsource for cost-cutting.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">57% of companies outsource to focus on business objectives.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">47% of companies outsource to solve capacity-related issues.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">31% of companies outsource to enhance service quality.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">28% of companies outsource due to critical business needs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">17% of companies outsource to manage business environments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">17% of companies do outsourcing to drive broader transformational changes.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: left;\"><span class=\"ez-toc-section\" id=\"_Major_Tech_and_IT_Updates\"><\/span><span style=\"font-size: 28px;\"><b>\u00a0Major Tech and IT Updates:<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><span style=\"font-weight: 400;\">Nasscom, a trade association of the 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.\u00a0<\/span><\/li>\n<li>In February 2020, Tata Consultancy Services bagged a project worth $1.5Billion from a renowned pharma company Walgreens Boots Alliance.<\/li>\n<li><span style=\"font-weight: 400;\">Infosys has acquired a 75% stake in ABN AMRO bank\u2019s subsidiary Stater. This stake accounts for $143.08 Billion.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">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 centers business in India over the next four years (<strong>2020-2024<\/strong>).<\/span><\/li>\n<\/ul>\n<p><b>Now, let us look at trends that are expected to emerge in the year 2020 and boost the outsourcing industry.<\/b><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Software_Development_Outsourcing_Trends_to_Emerge_in_2021\"><\/span><span style=\"font-size: 28px;\"><b>Software Development Outsourcing Trends to Emerge in 2021<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The outsourcing industry continues to evolve, and like every year, specific trends have been predicted to perform well this year. The trends are as follows:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">\n<h3><span style=\"font-size: 24px;\"><b>Robotics Process Automation(RPA)<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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 (<strong>BPO<\/strong>) company has to maintain the balance between delegating smaller tasks to bots and non-repeatable roles to humans.\u00a0<\/span><\/p>\n<ul>\n<li>\n<h3><span style=\"font-size: 24px;\"><span style=\"font-weight: 400;\">\u00a0<\/span><b>Social Media as a Channel to Interact with a Customer:<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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,\u00a0 <\/span><a href=\"https:\/\/www.pixelcrayons.com\/?utm_source=PC%2Bsoftwarestat&amp;utm_medium=PS&amp;utm_campaign=lead\" target=\"_blank\" rel=\"noopener\">software outsourcing companies in India<\/a> are <span style=\"font-weight: 400;\">experts in using social media tools and features to help you generate business.<\/span><\/p>\n<ul>\n<li>\n<h3><span style=\"font-size: 24px;\"><span style=\"font-weight: 400;\">\u00a0<\/span><b>Cloud Computing<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">The growth of the cloud services statistics world is so significant that it has already started to impact virtually every primary industry today. The cloud services statistics software market was valued at $18.08 billion in 2015, and it&#8217;s expected to reach $88.41 billion by the end of 2021, registering a CAGR of 19% between 2016 and 2021.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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, and this is where IT outsourcing companies come into action.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">With cloud computing, you can rent out your provider\u2019s IT infrastructure on a 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.<\/span><\/p>\n<ul>\n<li aria-level=\"1\">\n<h3><span style=\"font-size: 24px;\"><b>AI and IoT in Software Outsourcing Market<\/b><\/span><\/h3>\n<\/li>\n<\/ul>\n<p style=\"text-align: justify;\">While the development of AI is growing faster every year, only a few enterprises are actually leveraging this technology to boost their business competitiveness. While there are technical challenges for AI adoption, software outsourcing firms can help overcome these hurdles and facilitate smooth enterprise integration of AI with the help of experienced <a href=\"https:\/\/www.pixelcrayons.com\/hire\/ai-developers\">AI developers<\/a>.<\/p>\n<hr \/>\n<p style=\"text-align: center;\"><span style=\"font-size: 20px;\"><strong>Also Read: <a href=\"https:\/\/www.pixelcrayons.com\/blog\/software-development\/in-house-development-or-software-outsourcing\/\">The Better Choice: In-House Development vs. Software Outsourcing?<\/a><\/strong><\/span><\/p>\n<hr \/>\n<h2><span class=\"ez-toc-section\" id=\"Summing_Up\"><\/span><span style=\"font-size: 28px;\"><b>Summing Up:<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Software outsourcing has opened the door to many jobs and opportunities for the talented youth of a country. It has also benefited businesses in many ways. The most prominent one from them is \u201c<strong>cost-cutting<\/strong>.\u201d But globally speaking, the outsourcing market is very competitive. Every year there is a change in the ranking of a country.\u00a0<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">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 <\/span>best outsourcing <a href=\"https:\/\/www.pixelcrayons.com\/services\/software-development?utm_source=PC-Blog&amp;utm_medium=software-development&amp;utm_campaign=PS-page\" target=\"_blank\" rel=\"noopener\">software development companies in India<\/a><span style=\"font-weight: 400;\"> because only an expert can help you come up with the best results.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"i\"><\/span>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>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 problem. From clothes to food and business insights to invoicing, everything is just a matter of clicks [&hellip;]<\/p>\n","protected":false},"author":4310,"featured_media":12152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2414],"tags":[1496,2358,2369,2359,2370,2356,2357,2372,2371],"class_list":["post-12148","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-software-development","tag-outsourcing-software-development","tag-outsourcing-software-development-companies","tag-outsourcing-statistics-2020","tag-software-development-outsourcing","tag-software-outsource-trends","tag-software-outsourcing","tag-software-outsourcing-company","tag-software-outsourcing-stats","tag-software-outsourcing-trends-2020"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Software outsourcing stats and trends for 2020- PixelCaryons<\/title>\n<meta name=\"description\" content=\"Important software outsourcing stats and trends you cannot afford to miss. 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