What are the Statistics on IT Outsourcing in Singapore?
The statistics related to outsourcing reflect the landscape of the world of outsourcing in today's corporate landscape. Business owners who know about these statistics can use this knowledge to inform how they outsource their business's services to receive maximum benefits.
Many businesses around the world choose to outsource certain functions and services which are offered by the company. To do so in the best ways possible, businesses should search for competent and skilled organizations which utilize technological development to achieve excellent results. Doing so will also often lead to the saving of significant amounts of money.
However, before a business owner decides when, how, what, or even why to outsource, the owner should do the requisite research related to outsourcing. This research will include learning about statistics related to outsourcing in the current Singapore and global business landscapes.
Outsourcing in Singapore
Outsourcing in Singapore has clearly been on the rise in recent years. Among the reasons that Singapore’s business owners have claimed to favor outsourcing are a preference to spend on operations instead of capital, a desire to make their companies less dependent on existing infrastructure, and attempts to raise the level of transparency and gain greater financial control over their companies.
Singapore is currently a world leader in the field of outsourcing. The majority of Singapore’s companies which are able to do so outsource the functions and services which they can. It is important that Singapore companies continue to outsource whenever possible because the country’s labor shortage, coupled with the fact that the country might soon experience a recession, might cause only the companies which outsource to be the ones that find success amidst difficult economic times.
Outsourcing Around the World
According to a global survey, among all the companies which have recently chosen to outsource some of their services, 65% of them have stated that they plan to continue doing so. This same survey also showed that 37% of the companies polled intend to outsource more work than ever before for the purpose of application development.
The 10 countries deemed the most suitable to which services and functions can be outsourced, based on people skills, availability, business environment, and financial attractiveness, are as follows: India, China, Malaysia, Indonesia, Brazil, Vietnam, the Philippines, Thailand, Chile, and Colombia.
The fact that Singapore is not among these 10 countries shows that while the country has gained global stature with regard to outsourcing, it still has some way to go to become the world’s best country for outsourcing.
The outsourcing market can be divided into two distinct portions. One of these is that of information technology outsourcing; the other is that of business process outsourcing.
IT Outsourcing Statistics
In 2018, the total global revenue of information technology outsourcing was US$62 billion. Of all IT services in the world, 31% of them were outsourced. Global spending on information technology outsourcing has been increasing among companies of all sizes. Small businesses’ average budget percentage dedicated to IT outsourcing rose from 6.7% to 7.8%; medium-sized businesses’, from 4.7% to 6.5%; and large companies, from 6.3% to 8.7%.
Business Process Outsourcing Statistics
In 2018, the net worth of all of the world’s services that had been outsourced was US$85.6 billion. Around the world, the total revenue of all business process outsourcing totals US$23.6 billion. The global market for business process outsourcing has been growing at a tremendous rate. By 2022, the global market for business process outsourcing is expected to be valued at US$262.2 billion. Among the reasons for this expected extreme rise in value include technological development, the availability of new technological advancements, and the cost advantages of back-office administration. The United States is expected to control the largest portion of this future market; it is projected to hold 41.9% of the business process outsourcing market in 2022. However, the US is also not expected to be the region with the highest growth rate with regard to business process outsourcing. That accolade will be held by the Asia-Pacific region. The Asia-Pacific region’s business process outsourcing market share is expected to grow by 8.5% every year.
Should you need any of your company’s important services or functions outsourced, contact us at Paul Hype Page & Co. Our team of specialists will use their vast knowledge and experience to ensure that your company receives the high-quality services with which you have entrusted us.