Discover 10 Outsourcing Statistics that Generate Better Business Plans for Brands

The job of a marketer is complex. 

There are seemingly endless areas of specialization and focus that you can put your time towards, like SEO, social media, content, email, video, and interactive elements. 

With so many different strategies to tackle, modern marketers can easily become overwhelmed and unsure of how to proceed. 

One way that a brand can support marketing efforts is with outsource marketing. 

Outsourcing involves hiring third-party people or agencies to manage, implement, and monitor different marketing tasks. 

This can take a lot of the stress off of the plate of internal teams and ensure that goals are being met even with limited budgets or staff. 

However, if you are on the fence about the value of outsourcing, look no further than these outsourcing statistics. 

We’ll help you understand why outsourcing is a valuable avenue to explore and provide some other key outsourcing statistics to help you understand more about outsourcing and what it can do for your business.

First of All, What Exactly is Outsourcing?

As mentioned above, outsourcing relies on finding external third-party agencies or individuals who can help manage the load of marketing tasks you have. 

Many brands use outsourced agencies and companies to help manage specific parts of their marketing strategies such as SEO or social media, rather than hiring an in-house employee or team of employees for those areas of the marketing plan. 

When a brand uses outsourcing to supplement its marketing, it can reduce the strain and workload on internal team members and free up more time for high-level tasks that require the input of the marketing team. 

Outsourcing also allows brands to keep costs under control and avoid slowdowns within their own marketing department. 

Outsourcing statistics help demonstrate the real-life benefits that an outsourcing marketing strategy can bring to your brand. 

The biggest companies in the world use outsourcing as a way to manage their marketing strategies, so it’s a worthwhile investment for brands both big and small. 

Let’s dive into some of those outsourcing statistics now.

1. 70% of Outsourcing is for Cost Reduction

The number one reason brands use outsourcing in their marketing strategies is to reduce costs. 

Think about it this way: if you hire an agency to manage your SEO for $500/month, that’s a much lower cost than hiring an internal employee to work on SEO in-house. 

70% of brands that use outsourcing list their top reason as cost reduction. 

The second reason is flexibility, with 40% of businesses saying this is important to them, and the third most popular reason is speed, with 20% of businesses listing that as their number one priority for outsourcing.

2. 36% of US Workers are in the Gig Economy

The gig economy refers to freelancers and short-term contract employees who work from gig to gig to earn a living. 

These individuals are responsible for a significant portion of outsourcing work, especially in areas like design, visual development, and website creation. 

Freelancers enjoy working in the gig economy, as it gives them more autonomy and freedom with their schedules and projects. 

The large portion of the workforce in the gig economy means that there are plenty of people to choose from when looking for reliable outsourcing.

3. In 2019 the Global Outsourcing Market was Worth $92.5 Billion

Outsourcing statistics from 2019 show us that the global outsourcing market is worth an incredible amount of money, over $90 billion. 

The Americas and, specifically, the United States, take up the largest portion of this market share. 

The global worth of outsourcing continues to grow, and as new outsourcing statistics come in from more recent years there is expected to be a significant increase in the total value.

4. Big Brands are 66% More Likely to Outsource than Smaller Brands

While outsourcing has benefits for brands and organizations of every size, large companies are more likely to be the ones outsourcing their marketing and other areas of business like IT or customer service. 

One reason for this could be that large companies have a larger budget to outsource, while smaller companies with fewer employees still want to keep things internal as they grow and expand.

5. 37% of Small Businesses Outsource a Business Process

While larger companies are more likely to outsource, there still is a significant portion of small businesses that use outsourcing for at least one key business process. 

While this may not be marketing, small businesses can find benefits from outsourcing their IT, accounting, customer service, or even sales or administrative tasks. 

This helps them manage their tasks without overwhelming internal teams or having to go over budget to hire new employees.

6. Outsourcing Solves the 5 Small Business Problems

Small businesses face the same major challenges, the top five of which break down as such: 

• Hiring new employees
• Increasing profit
• Employee healthcare
• Growing revenue
• Managing cash flow 

Outsourcing helps to manage and solve all five of these major concerns. 

By hiring a third party, small businesses don’t need to hire internal employees or cover healthcare for them. 

It also helps manage cash flow by reducing costs and increasing profit while growing revenue.

7. 65% of Businesses that Outsource Plan to Increase Outsourcing

Ever wonder if the companies that have outsourced in the past find value in the process? 

Well, this outsourcing statistic might shed some light on the situation. 65% of businesses that have used outsourcing in the past or currently use outsourcing now plan on increasing their outsourcing efforts. 

It goes to show that once a company sees the benefits of outsourcing, it’s hard to resist or avoid doing it even more for other areas of the business.

The financial benefits, speed, and flexibility of outsourcing make an impression on the brands that decide to give it a try.

8. 93% of Brands Use Cloud Services to Outsource Better

If you’ve never tried outsourcing before, it can be difficult to imagine how you would manage the relationship. 

Outsourcing can be optimized and improved through the use of cloud-based services that connect the brand to its outsourcing partners in real-time. 

Cloud solutions help keep brands in control of their outsourced practices and ensure that they have insight into what is being done. 

Shared cloud platforms increase the visibility into what third-party outsourcers do and allow the company to oversee and manage those efforts at a high level. 

Cloud-based services also keep communication constant, which can help reduce any lingering fears of uncertainty or security.

9. 300,000 Jobs are Outsourced from the US Every Year

If you’ve ever wondered exactly how many jobs are outsourced vs kept internal, then look no further than this outsourcing statistic. 

The United States outsources as many as 300,000 jobs each and every year. Some of those jobs go overseas and some stay internal to freelancers and those in the gig economy. 

While some Americans might view this as job loss to overseas individuals, the truth is much more complicated. 

While certain jobs are outsourced, there is an increase in different jobs, usually at a higher level, that still need to be completed in-house. 

Strategic, management, and development jobs typically remain internal to a company rather than being outsourced to a different third-party partner.

10. 78% of Businesses Have a Positive Relationship with Outsourcing Partners

No partnership is perfect, and that applies to outsourcing partnerships as well. There will always be times when things aren’t done right or frustrations occur. 

However, a significant majority of brands believe that their partnerships with outsourcing partners are positive. 

Nearly 80% of brands that use outsourcing are happy and satisfied with the relationship they have with their outsourcing partners. 

That contributes to the high number of brands that want to increase their outsourcing and find it to be a valuable part of their business strategies. 

When brands know that they can rely on their outsourcing partners, it reduces internal stress and creates a much more effective and productive working environment.

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Wrap Up

Outsourcing can be a valuable avenue for brands to explore. 

As our outsourcing statistics have shown, it can help you reduce costs, get more flexibility, free up time for internal teams, and help you achieve your marketing goals. 

Using outsourcing statistics to help you develop your understanding of the value of outsourcing can go a long way in creating knowledge about the benefits outsourcing can bring. 

One area that outsourcing can really help with is content. 

Content production can be overwhelming for internal teams, especially if you want to publish regular blogs and original social media posts. 

Outsourcing content can help you keep up with production and reduce internal stress.

Not sure where to start? No problem! WriterAccess is the perfect platform to help you streamline your content production, combining the efficiency of AI with the creativity of human writers.

Why not give WriterAccess a try today? Sign up now and get 14 days of free access to our network of expert writers. Discover for yourself what great content can do for your business!