Should we outsource our domestic shared services processes or run them ourselves in a low-cost offshore location? Which will provide the best mix of quality, efficiency and lowest risk? Global market size of outsourced services from 2000 to 2015 (in billion U.S. dollars). The revenue of the global outsourced services industry rose steadily year over year from 45.6 billion U.S. dollars in 2000 to 99.1 billion in 2012. In 2013, however, the industry saw a drop of around 20 percent in total contract value to 82.9 billion U.S. dollars, showing a reduction in market size.
The market recovered the following year, reaching 104.6 billion U.S. dollars, but subsequently dropped in 2015 to around 88.9 billion U.S. dollars. This largest share of revenue for this industry came from Europe, the Middle East and Africa, followed by the Americas.
Outsourcing involves the contracting out of business processes to third parties, usually in order for the business to avoid certain costs, such as taxes. In 2015, business process outsourcing contributed a much smaller proportion of the industry’s global revenue than information technology outsourcing, generating 25.4 billion and 63.5 billion U.S. dollars respectively
Other outsourcing segments within the global industry include business services, energy, healthcare and pharmaceuticals, retail, travel and transport, and telecom and media. In 2014, the global market size of IT healthcare outsourcing was just under 35 billion U.S. dollars, and was forecasted to increase to 50.4 billion U.S. dollars by 2018.
Many companies looking for the next significant change in shared services are struggling with these questions. Each path will offer you low-cost options and significant improvements in efficiencies.