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Outsourcing keeps gaining momentum: some statistics |
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Small businesses are even luckier within the outsourcing well-doing getting an access to the special knowledge of the market, which is why more and more small and mid businesses are trying to be involved in the latest approaches of outsourcing. And of course, IT companies outstrip the others.
Starting 1990s (more outsourcing history here), the offshore outsourcing market took huge steps ahead, putting all the pros and contras on analysts and outsourcing statistics. So, statistics is maybe the most important element in working-out outsourcing prospects. Many analysts tried to figure out the connection between economical processes and outsourcing and came to an assumption that the outsourcing existence wasn’t a random phenomenon. Below are some numbers. The IT market is the most profitable. Profits grow too feeding the companies with the hopes for growing revenues in 2005-2006 by an average of 11%. At the same time young Ukrainian IT outsourcing market growth yearly by 40% since 2003. See more at Ukraine as the outsourcing hub Looking back at the 2003 IT offshore outsourcing figures, the main benefits of programming outsourcing were taken by India and Ireland with $11.3 billion and $14.4 billion respectively. In 2004, India gained some $12 billion annually on IT outsourcing solutions. The US IT outsourcing market also attempts to get a piece of a pie with an annual growth rate of 14.4%. Drawbacks A lot of outsourced project has already been complied through past years thus now we can talk about what to expect from moving activities off-base meaning statistical economical kickback. When whole project from A to Z moved offshore by a large company it can expect 30% to 50% cost savings. Non the less effective is offshoring parts of project or smaller project, as well as small business processes, and savings might be up to 40 percent in most cases. Statistics shows that there are more and more companies trying to cut costs by using offshore outsourcing solutions. That makes workers from the US and other countries a bit anxious. Such countries as India, China and the Philippines now make profits from jobs exporting leading to increasing job loss over the world. In turn other opinion is present: companies in USA, EU or any other country where offshoring is effective, are cutting their costs buying outsourced services. How do you think - where will those saved costs be invested? Predominantly they will be invested back into economy of ones country and into new jobs inside. Still, companies should not hurry to sign long-term outsourcing deals, analysts say. "No one is protected from the failure" - they add, and even the most secure at the first glance offshore deals can go bad. Another moment is that in years such deals might become cheaper when Eastern European outsouring players are coming into market, thus leading to even more cost savings. But the market is definitely worth seeking new options and solutions. Outsourcing can be exactly what you’ll get profit from. Think about it! Additional Resources:
News updates on the topic: 2007, Oct 31. Recent public release by Luxsoft with prediction of outsourcing markets for 2008 emphasizes the near-shoring strengths will grow. The more attention is driven from Western and Central Europe to the Eastern Europe, and from USA to Canada. >> 2006, Dec 28. Russia shows the will of becoming an world outsourcing leader during the next 3-4 years. The important tax changes are done in 2006, the governmental support is grows stronger and the quality of specialists is constantly improves. The year 2006 stats confirm such trend, showing increase of software export from $1b to $1.8b. >>
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