12+ IT Outsourcing Statistics for Business Decision Makers
For years, companies around the world have relied on IT outsourcing to build and operate software development and IT teams.
While companies still turn to in-house professionals, they can get more benefits by turning to software development and IT outsourcing. From simple cost-saving to finding skilled tech talents in niche fields, among other benefits.
The global outsourcing services market is estimated to reach $1.09 trillion in 2025. It’s forecast to grow to $1.48 trillion by 2030, registering a compound annual growth rate (CAGR) of 6.4% between 2025 and 2030.
This figure considers the business process outsourcing (BPO) market as part of the IT outsourcing market.
In this article, we’ll explore the top IT outsourcing statistics, what each stat reveals about the state of the industry, and what this means for you as a decision-maker.
We’ll cover IT outsourcing stats on everything from talent acquisition to team management to business growth.
Top outsourced IT roles
At Tawzef, we regularly work with companies in Egypt and in the Middle East and Europe, helping them outsource complete IT departments, or single individuals.
IT services remain among the most outsourced jobs in 2025. These include:
- IT support and helpdesk
- Network management
- Software development & maintenance (web development, mobile apps, games)
- Cybersecurity
- Data scientists and AI/ML engineers
In addition, some call center outsourcing services may fall under IT, due to the nature of IT support and help desk needs.
In terms of countries, the best countries for offshoring software development are Egypt, India, Vietnam, Mexico, Ukraine, among others.
Further reading: What Are the Top Industries that Rely on Staff Offshoring?
Advantages of outsourcing IT and development roles
For many modern businesses, IT outsourcing has become a core strategy for success.
Here are the top benefits of outsourcing software development roles and teams:
1) Larger talent pool
By using an external provider, like an HR agency, companies get access to a global talent pool with specialized skills not available locally.
2) Better scalability
With a global talent pool and range of candidates, companies, especially startups, are able to scale faster.
This also provides them with immense flexibility to hire based on their contract or project needs.
3) Cost efficiency
Beyond access to talent, IT outsourcing means enhanced cost efficiency. This can include manpower outsourcing, which involves having a third-party handle all payroll needs, and flexible contracting.
For example, companies can turn fixed expenses like salaries into variable, project-based costs, reducing operational overhead and freeing up capital.
4) More focus on core business
If you’re not an IT startup or tech-focused business, delegating IT functions allows your in-house teams to focus on core business activities like marketing, innovation, and growth.
This strategic shift boosts team productivity and gives you a competitive advantage.
Should you outsource your IT team or a single?
The decision to outsource a full team or a single role depends on your goals and needs.
Outsourcing a single role is best for a specific skill gap or a short-term project.
On the other hand, outsourcing a full team provides a cohesive unit to manage an entire project, offering a complete suite of capabilities without the management overhead.
IT outsourcing statistics you can’t ignore
Here’s what the numbers have to say about IT outsourcing statistics for B2B decision makers.
92% of G2000 companies use IT outsourcing
A G2000 company is one of the 2,000 largest public companies in the world, as ranked annually by Forbes magazine. The ranking is based on a composite score that considers four metrics: sales, profits, assets, and market value.
What this stat suggests is that the world’s largest, publicly-traded businesses rely heavily on IT outsourcing. This suggests the effectiveness of this business model and its reliability, particularly in how it provides access to specialized talent and improves agility.
Software companies spent 19% of their revenue on IT
In 2023, software businesses around the world allocated 19% of their revenue on IT, while tech hosting and cloud services companies invested 16% of their revenue in IT infrastructure.
These IT outsourcing statistics reflect a strategic shift toward modernizing infrastructure to gain a competitive edge.
Major collaborations, like the one between Oracle, Microsoft, and OpenAI in June 2023, suggest a growing trend of partnerships to enhance AI capabilities. These initiatives demonstrate how organizations are leveraging external expertise to achieve scalability and efficiency, allowing them to focus on core business functions and innovation.
Global BPO to reach $525 billion by 2030
As mentioned, business process outsourcing services are heavily interlinked with IT outsourcing. It’s expected that the global BPO market will reach $525 billion by 2030.
Businesses are increasingly turning to BPO providers, like Tawzef, to handle non-core tasks like HR strategies and operations and IT.
BPO market growth also comes from demand for new services like personalized customer experiences and multi-channel communication, which gives companies a chance to offer better service to their clients.
9% of the Philippines’ GDP comes from BPO
The Philippines is one of the top countries for outsourcing IT and software development roles. Whether through employer of record (EOR) services or individual talents.
The data shows that 9% of the country’s gross domestic product (GDP) is due to BPO and IT outsourcing operations.
66% of US companies outsource at least 1 department
Research by RadixWeb in 2024 found 66% of businesses in the United States “will outsource at least 1 department.” The IT department was the “most outsourced function.”
This suggests that outsourcing isn’t limited to cost-saving, but is used as a strategic tool for growth. Service providers are now offering advanced services like data analytics and AI, not just traditional IT tasks.
The shift to hybrid and remote work has also allowed these providers to tap into a wider, global talent pool, offering clients more flexible and innovative solutions.
IT and telecom take the lead
According to Mordor Intelligence, the IT and telecommunications industries led the outsourcing market with a 31.60% share of the recruitment outsourcing market.
Meanwhile, the retail and e-commerce sector is poised for a significant 15.30% CAGR till 2030.
North America leads with a 38% market share
Geographically, North America contributed 37.80% of the outsourcing market’s revenue in 2024. That said, Asia-Pacific is projected to record the quickest expansion, with a 13.60% CAGR.
Off-site models dominate with a 56.70% market share
In terms of business model, off-site delivery models made up 56.70% of the recruitment outsourcing market size in 2024. However, hybrid delivery is the fastest-growing approach, with a projected 15.40% CAGR.
Large businesses hold a 58.40% market share
Large organizations accounted for 58.40% of the recruitment outsourcing market revenue in 2024. In comparison, small and medium-sized enterprises (SMEs) are set to climb at a 14.60% CAGR through 2030.
Top reason for outsourcing is now talent access (42%), surpassing cost reduction
The Deloitte Global Outsourcing Survey 2024 uncovered that the main drivers for outsourcing have shifted away from cost reduction.
Now, access to specialized talent is the top driver, according to 42% of executives surveyed. Meeting customer demands ranks second, with 35% saying they “use outsourcing to help meet the escalating needs of their customers.”
Cost reduction now ranks third, with only 34% of companies saying it’s the main reason for using outsourcing solutions. This figure is down from 70% in 2020.
These outsourcing statistics suggest that the talent gap is a more pressing matter as managers and HR leaders struggle to find and retain skilled talents.
Outsourcing services provide a direct solution to this challenge, giving you immediate access to a global pool of vetted experts.
IT and HR top areas adopting AI-powered outsourcing
According to Deloitte, AI-powered outsourcing is the practice of third-party vendors using AI and automation technologies to reduce the human effort required to deliver outsourced services.
“Outsourcing is a key driver for the rise of the digital workforce,” the report says, adding that businesses expect vendors to enhance services and deliver greater value by embedding AI technologies.
The IT and HR functions are the top functions assuming this trend at 87% each.
Organizations surveyed by Deloitte report that use AI-powered outsourcing reported a higher satisfaction level (by 7%) compared to those that aren’t using it.
“The interest in and adoption of AI-powered outsourcing is high across industries, functions, and regions globally, with the highest level of interest seen within the utilities, energy, and media and telecommunications sectors, and within IT and HR functions,” Deloitte says.
IT infrastructure and cybersecurity top outsourced functions at 77%
An important stat in this like of IT outsourcing statistics is this one by Deloitte. According to the report, 77% of companies outsource IT infrastructure services and cybersecurity.
The growing complexity of IT and the constant evolution of cyber threats make managing both internally a challenge.
Outsourcing IT infrastructure services and cybersecurity to specialized firms provides companies with access to dedicated teams, advanced tools, and the latest knowledge, ensures both reliable operations and robust defenses against sophisticated attacks.
72% outsource their software development needs
A vast majority of companies 72% continue to outsource software development operations, including web and application development.
In addition, 69% of companies outsource application support.
Whether it’s custom software, mobile apps, or enterprise solutions, businesses are leveraging external teams to speed up project timelines and access specialized expertise they may lack internally.
Take the next step with your IT outsourcing needs
For business owners, recruiters, HR professionals, and team leaders, understanding key IT outsourcing statistics and data points is crucial for making informed decisions.
These statistics prove that IT outsourcing is a strategic, effective, and widely-adopted practice for modern businesses.
To take the next step in optimizing your operations and accessing top-tier talent, get in touch with Tawzef for your IT and HR outsourcing needs.