At the beginning of the year, we bet that all CMOs and CIOs want nothing more than
If we take only contracts with value of above 25 million U.S. dollars all over the world, we can see a falling trend of total contract value in the outsourcing market in recent years, from a 2014 peak of 104.6 million U.S. dollars. This trend is reflected in companies’ intention to expand their use of offshoring and has several reasons to attributed to.
- The increasing ability to automate business processes has become so great it overtakes the cost advantages of outsourcing in some cases.
- In-house operations now has greater quality control that it increased flexibility in the deployment of these type of operations.
- The pressure of social has led to the scenario in which many companies want to keep jobs close to home rather than utilize cheaper labor overseas.
Read more: Reasons to choose IT software outsourcing Vietnam
Global outsourcing revenue from 2010 to 2019, by region
According to the chart, the Americas owned the largest share of outsourcing market in 2019, with 62 billion U.S. dollars of revenue. This was a significant increase in comparison to the figure for 2017. With this revenue, this is the second time North America become the dominant market in comparison to Europe, the Middle East and Africa (EMEA).
Total contract value of the outsourcing market in America
In 2019, the size of the outsourcing market in the Americas amounted to 62 billion U.S. dollars
Facility management includes management methods and techniques to build and maintain a overall harmonization of the work environment in a company. This system standardizes services and streamlines processes for an organization.
According to this pie chart, you can see that America was the biggest market for outsourcing facility management services in 2017, with a market size of 202.5 billion U.S. dollars. This is the reason why many global service providers have their headquarter located in this region, according to PWC
When COVID-19 was still a looming threat in Wuhan city, China, the facility management market was valued at $40.41 billion, and was expected to reach a market value of USD 81.49 billion by 2026, registering a CAGR of 12.51% over the forecast period (2021 – 2026).
Leading countries in IT outsourcing service 2019
To have a broader overview of the list: top IT outsourcing countries, read our article.
Most financially attractive countries for offshore business services worldwide 2017
As you can see, Sri Lanka was the most financially attractive countries for BPO in 2017, but in2019, the crown was taken by India.
Owing to its financial attractiveness and availability of staff and skills, India, with an index score of 2.82 and 2.23 respectively, is the champion. However, while they expel in staff and skills ability, their performances in the new category assessed, such as digital resonance, is quite poor, just 0.87. In comparison, the United States scored 1.21 for its digital resonance.
This may pose a serious threat to India’s throne as digitalization is considered an inevitable tech trend all around the world, especially under the terrible impact of COVID-19.
As of global situation before and after COVID, read these two reports:
- Global IT Outsourcing Report 2020 â€“ A year to look back
- Global IT Outsourcing Market Report 2021 and beyond â€“ A future to uphold
In the upcoming report, we will show you our list and charts of global leading IT companies, or you can see CMC Global’s list of top IT outsourcing companies.