Ultimate outsourcing statistics and reports in 2026

What do the latest outsourcing statistics show?

The latest outsourcing statistics show a fast-growing global market, led by India, China, and Malaysia, and driven by AI, cloud, and cost savings.

• The global BPO market is now worth hundreds of billions of dollars.
• Cost cutting, process standards, and new skills are the top reasons to outsource.
• India and the Philippines remain the biggest destinations by volume.

Many business owners turn to business process outsourcing instead of hiring in-house. The rise of remote work has pushed this shift even further. As a result, in-house teams alone often cannot cover every need.

Because of this, many groups rank the top and emerging countries for outsourcing. These lists act as a guide for businesses. Still, most firms remain more confident in human talent than in AI alone. Meanwhile, BPO companies use automation to make their own work faster.

So the next few years will be busy for the global economy. Below are key outsourcing statistics and reports that point to where the industry is headed.

Global outsourcing statistics

Even with the rise of robotic process automation (RPA), firms still turn to the outsourcing and shared services (OSS) industry. At the same time, providers race to add AI and automated workflows. As a result, they add more value to their services.

As reported by Deloitte and a news article in the Arabian Gazette, OSS grew popular in the Middle East, and especially in Dubai. In that report, it was projected to reach $6.8 billion. In addition, the 2019 Kearney report stressed automation and cybersecurity. So these factors now shape how firms pick a BPO partner, along with location.

Because of this shift, more repetitive jobs moved toward higher-skilled roles. In turn, providers built teams that can meet the demand for automation.

As per Gartner, more than 80% of logistics leaders planned to raise their outsourcing budget. For many, outsourcing logistics helped them meet or beat supply chain goals. The Everest Group also saw strong growth in life and pension insurance BPO. In fact, that segment grew 9% to 11% as end-to-end administration expanded.

Outsourcing industry statistics and market size

The shift to remote work made firms value outsourcing even more. Below are some updated global outsourcing figures to date.

As many firms moved to digital operations, competition rose fast. The US still has one of the highest shares of outsourced jobs, with about 68% of firms delegating work. The UK, meanwhile, has around 48% of companies offshoring functions. For them, talent shortage is the main driver.

Deloitte’s global outsourcing survey named three primary reasons firms outsource. These are:

• Cost reduction (84%)
• Standardization of processes (82%), and
• Development of capabilities (70%)

Healthcare is also one of the most outsourced industries. As a result, remote and telehealth services keep growing. As for the wider market, the industry reached US$261.9 billion in 2022. Since then, it has kept climbing. Grand View Research now values the global BPO market at about US$358.6 billion in 2026. Moreover, it projects a rise to US$695.8 billion by 2033, at a 9.9% yearly rate. So outsourcing stays strong even as AI and RPA grow.

In IT, firms keep leaning on cloud solutions. These are expected to reach “a monumental $760 billion.” Still, cybersecurity remains a top worry for global firms. This is true above all when hiring remote workers. A reported rise in cybersecurity threats has made data privacy a key concern. As a result, BPOs keep strengthening security as they build a long-term remote work strategy with clients.

Top countries for outsourcing services

Each year, research groups list the top countries for outsourced services. They base this on factors like workforce size, literacy, and access to technology. Below is a closer look at each top country. You will see why firms choose them and what they do best.

Indian offshore outsourcing statistics

India remains a top outsourcing destination worldwide. It ranked as the most attractive location for offshore services in Kearney‘s 2023 Global Services Location Index. China and Malaysia followed close behind. Besides 24/7 service and strong tech, India is known for top talent in IT and software.

Highlights

• Population: 1.40 billion
• Literacy rate: 74.37
• English proficiency: #50/100 in the world and #8/24 in Asia
• Employment rate: 42.4
• Real GDP (in USD): 2.62 trillion
• Government support in outsourcing: full support to develop the IT industry
• Industry body: National Association of Software and Services Companies (NASSCOM)

Fast facts

• Gross Domestic Product (GDP). “India is the 3rd largest economy in the world after the US and China in terms of purchasing power parity (PPP) and 10th in terms of nominal GDP.” Source: Deloitte India
• Doing business. “India has moved 14 places to 63rd among 190 nations in the World Bank’s ease of doing business ranking on the back of multiple economic reforms.” Source: India Times
• Indian Railways. “Indian Railways is one of the largest employers in the world with over 1.4 million employees.” Source: MSN Money
• Labor statistics. “Slightly less than half of the workforce is in agriculture, but services are the major source of economic growth, accounting for nearly two-thirds of India’s output.” Source: Forbes
• Action to climate change. “The country is paying its states about $125 per hectare of forest per year as a way to give afforestation a boost.” Source: World Economic Forum

The Philippines offshore outsourcing statistics

Next to India, the Philippines is another leading destination. It came late to the field, yet it has held the title “The BPO Capital of the World” since 2010. As a former colony of Spain and the US, it enjoys strong cultural fit with Western clients.

The country leads in customer service, both voice and non-voice, and in back-office work. So many global firms run call centers there. Besides cost savings, these firms gain strong service quality. In turn, they can focus on their core business.

Highlights

• Population: 111.4 million
• Literacy rate: 98.18
• English proficiency: #27 in the world and #2 in Asia
• Employment rate: 93.13
• Real GDP (in USD): 361.49 billion
• Government support in outsourcing: full support to develop the IT industry
• Industry body: IT & Business Process Association of the Philippines (IBPAP)

Fast facts

• Gross Domestic Product (GDP). “The Philippine Gross Domestic Product recorded a growth of 11.8% in the second quarter, the highest since its 12% recorded growth in 1988.” Source: Philippine Statistics Authority (PSA)
• “In 2015, the BPO sector generated over $22 billion in revenue, accounting for 7.3% of the Philippine economy.” Source: World Trade Organization
• “The income in the BPO industry was seen to ‘fill up remittance dip.'” Source: BusinessMirror
• Contribution of BPO to employment. “In the same year, the industry generated 1.2 million full-time employees.” Source: World Trade Organization
• Government support. To help develop the IT sector, PEZA supports foreign investors setting up BPO companies. It gives them incentives such as tax holidays, tax-free imports of equipment, and visa help.

The United States outsourcing statistics

The US outsourcing scene started to grow fairly recently. Since 2017, domestic or onshore outsourcing has become popular. So more clients now tap US-based teams. The country made Kearney’s top 10 for business services. It is strongest in tech support and IT-related work.

Highlights

• Population: 333.4 million
• Literacy rate: 99
• Employment rate: 58.5
• Real GDP (in USD): 20.94 trillion
• Government support in outsourcing: efforts to bring back jobs and raise employment

Fast facts

• Online work. “The US is the 3rd largest supplier of freelancers and online workers, next to India and Bangladesh.” Source: iLabour, Oxford Internet Institute
• Doing business. “In 2017, President Donald J. Trump signed Executive Order 13771, also known as the ‘one-in two-out’ policy. It aims to cut costs of doing business in the United States.” Source: US Environmental Protection Agency
• Fortune 500. “Fortune 500 companies represent two-thirds of the U.S. GDP with $13.7 trillion in revenues, $1.1 trillion in profits, $22.6 trillion in market value, and employ 28.7 million people worldwide.” Source: Fortune.com
• Paris Agreement. “The US rejoined the agreement on February 19, 2021, under the Biden administration.” Source: BBC

Ukraine offshore outsourcing statistics

Ukraine is among the countries gaining outsourcing popularity in Eastern Europe. It keeps earning praise from groups like the Global Sourcing Association (GSA), IAOP, and Kearney. In addition, its IT sector is set to keep growing, along with the number of outsourced jobs.

Highlights

• Population: 43.4 million
• Literacy rate: 99.97
• English proficiency: #44 in the world and #30 in Europe
• Employment rate: 56.2
• Real GDP (in USD): 155.6 billion
• Industry body: IT Ukraine Association

Fast facts

Agriculture. “Dubbed as the ‘breadbasket of Europe,’ Ukraine is first known for agricultural products such as sunflower and wheat.” Source: Ukraine Canadian Research and Documentation Centre

European Union. In 2017, Ukraine signed an agreement with the EU, Euratom, and the union’s member states. This marks it as a priority partner. So far, Ukraine is not yet part of the EU. Source: European Union External Action

IT outsourcing. “Developers in Ukraine are currently around 165,000 and are expected to increase up to 125%.” Source: Entrepreneur.com

Poland offshore outsourcing statistics

Poland is another Eastern European country that has gained ground. It is one of the biggest players in IT in Eastern Europe. Still, it also specializes in finance and accounting. Besides its multilingual talent and low costs, its firms hold strong data-security compliances. So clients gain peace of mind.

Highlights

• Population: 37.79 million
• Literacy rate: 99.8
• English proficiency: #16 in the world and #14 in Europe
• Employment rate: 69.2
• Real GDP (in USD): 594.2 billion
• Industry body: Association of Business Service Leaders (ABSL)

Fast facts

• Economy. “Poland is now among the fastest-growing economies in the European Union (EU), recording a GDP growth of 5.1% in 2018.” Source: World Bank
• Demographic outlook. “The 15-to-59 age segment is expected to decline by 2.7 million by 2025. This trend can, however, be stopped or even reversed, with targeted policy measures.” Source: McKinsey
• Ease of doing business. “Poland ranks 40th in the World Bank’s Ease of Doing Business ranking and has the lowest corruption score in Eastern Europe.” Source: Statista
• Cybersecurity. “The Polish National Cyber Security Strategy aims to enhance capacity to counteract cybercrime, including cyber espionage and incidents of a terrorist nature.” Source: EU

Brazilian offshore outsourcing statistics

Outsourcing in Brazil has been made unrestricted. This came from the Outsourcing law, signed in 2017, and a later Supreme Court ruling. As a result, more firms now outsource core functions there, not just support roles. In fact, Brazil ranked 4th in Kearney’s 2023 index.

Highlights

• Population: 213.3 million
• Literacy rate: 93.2
• English proficiency: #53 in the world and #10 in Latin America
• Employment rate: 50.2
• Real GDP (in USD): 1.45 trillion
• Industry body: Brazilian Association of Software Companies (ABES)

Fast facts

Overview. “Brazil is South America’s most influential country, a rising economic power and one of the world’s biggest democracies.” Source: BBC

GDP savings action plan. “A comprehensive social security reform was approved by the lower house. The reform is expected to generate accumulated savings of 9 percent of GDP, combined with the spending rule.” Source: World Bank

Economic reform policies. “Some progress has been made in reducing trade barriers by limiting local content requirements in the oil and gas sector.” Source: OECD

South African offshore outsourcing statistics

Ranked 12th in Tholons Digital Nations, South Africa is now a fast-rising BPO hub. In fact, it competes with India and the Philippines. The sector also helps drive economic and social growth through impact sourcing. It specializes in contact centers and IT outsourcing. Most clients come from banking and finance, telecoms, and healthcare.

Highlights

• Population: 60.24 million
• Literacy rate: 99.37
• English proficiency: #12 in the world and #1 in Africa
• Employment rate: 37.7
• Real GDP (in USD): 301.9 billion
• Industry body: Business Process Enabling South Africa (BPESA)

Fast facts

• Economy. “South Africa has one of the continent’s biggest and most developed economies.” Source: BBC
• The country ranks as a second-largest economy, next to Nigeria. Source: IMF
• Production. “South Africa is one of the world’s largest producers and exporters of gold, platinum, and other natural resources.” Source: Economic Freedom Index
• Innovation. “South Africa leads the regional ranking of the 2019 Global Innovation Index, making it the most innovative country in Africa.” Source: WIPO

Malaysian offshore outsourcing statistics

Last but not least, Malaysia is a rising outsourcing country. The same 2023 report from Kearney placed it as the third-best destination in the world. It keeps gaining ground in IT and IT-related work. Still, it must keep pace with its neighbors on infrastructure and English skills.

Highlights

• Population: 32.7 million
• Literacy rate: 98.74
• English proficiency: #30 in the world and #3 in Asia
• Employment rate: 68.3
• Real GDP (in USD): 336.7 billion
• Industry body: Outsourcing Malaysia (OM)

Fast facts

• Economy. “Malaysia is one of the most open economies in the world, with a trade to GDP ratio averaging over 130 percent since 2010.” Source: World Bank
• Monarchical ruling. “Since Malaysia’s independence in 1957, the sultans who are the hereditary monarchs in nine of the country’s 13 states have selected one of themselves to serve a five-year term as king.” Source: CNN
• Small and medium enterprises (SMEs). 98.5% of business establishments in Malaysia are SMEs. In 2017, they contributed 37.1% of the country’s GDP. Source: Department of Statistics Malaysia
• Censorship. “Malaysia has some of the toughest censorship laws in the world. The authorities exert substantial media controls and can impose restrictions in the name of national security.” Source: BBC

Frequently asked questions about outsourcing statistics

How big is the global outsourcing market?

It is large and still growing. Grand View Research values the BPO market at about US$358.6 billion in 2026. Moreover, it sees a rise to US$695.8 billion by 2033.

Why do companies outsource?

The top reasons are cost cutting and process standards. Firms also outsource to build new skills. So it helps them focus on their core work.

Which country is the top outsourcing destination?

India leads most global rankings. China and Malaysia follow close behind. The Philippines leads in customer service and back-office work.

What services are outsourced the most?

IT and software top the list. Customer service and back-office work come next. Finance, accounting, and healthcare support are growing fast too.

Is AI replacing outsourcing?

Not yet. Firms still trust human teams for most work. Instead, providers use AI to make their services faster and better.

Key takeaways

• The global BPO market is worth hundreds of billions and keeps growing near 10% a year.
• Cost cutting, process standards, and new skills are the main reasons to outsource.
• India, China, and Malaysia lead the latest Kearney rankings.
• The Philippines remains the top hub for customer service and back-office work.
• AI and cloud tools now shape how providers deliver, but human talent still leads.