40+ Vital Outsourcing Statistics [2026]: How Many Jobs Lost To Outsourcing?

Research Summary. As businesses across the U.S. continually seek innovative strategies to enhance profit margins and streamline operations, outsourcing has solidified its role as a vital business strategy for companies of all sizes.

To provide insights into this trend, our data analysis team has compiled a comprehensive list of outsourcing statistics relevant to the United States. Our findings reveal:

• Approximately 300,000 U.S. jobs are outsourced annually.

• The global outsourcing market is valued at approximately $92.5 billion, with the U.S. contributing about $62 billion to this figure.

• 66% of U.S. businesses engage in outsourcing at least one department.

• 59% of businesses cite cost reduction as the primary motivation for outsourcing.

• Information technology remains the most outsourced industry, with 13.6% of the average IT department budget allocated to outsourced tasks, and around 37% of IT functions being outsourced.

• Globally, 78% of businesses that outsource report positive experiences with their outsourcing partners.

• The outsourcing market is projected to expand at a compound annual growth rate of 4% from 2021 to 2025.

• About 24% of small businesses outsource to enhance operational efficiency.

For more in-depth analysis, we categorized the data in the following sections:
Jobs Lost to Outsourcing | Company Size | Common Reasons | Trends | The Economy | Benefits + Issues

General Outsourcing Statistics

• 68% of large consumer products companies in the United States outsource a portion of their workforce.

  This trend indicates that more than two-thirds of significant corporations in the U.S. utilize outsourcing strategies, primarily driven by budget constraints and rising operational costs.

• Companies across the nation hired more than 2 million outsourced workers in the 2000s.

  During the 2000s, outsourcing surged, with U.S. companies reducing their domestic workforce by approximately 2.9 million while employing 2.4 million outsourced workers internationally, according to the Center for American Progress (CAP).

• The global outsourcing service market is valued at over $90 billion.

  As of 2019, the international outsourcing market valuation was $92.5 billion, with $62 billion derived from U.S. companies.

• The information technology sector generates the most global outsourcing revenue.

  In 2019, $66.5 billion originated from IT outsourcing, while business process outsourcing accounted for $26 billion.

• Large multinational companies lead in outsourcing, particularly overseas.

  Between 2010 and 2012, 35% of large multinational companies in the U.S. expanded their workforce more quickly than smaller firms, although approximately three-fourths of the new jobs were outsourced abroad.

• China remains the top destination for U.S. outsourcing.

  China continues to be the leading country for U.S. outsourcing, with its outsourcing market expanding by 30% annually. Other significant outsourcing countries include the Philippines, Taiwan, Ukraine, and Vietnam.

Outsourcing Statistics by Jobs Lost to Outsourcing

• Approximately 30 million jobs are at risk of outsourcing.

  Over one-fifth of jobs in the United States are susceptible to outsourcing, as indicated by a Princeton study.

• Technology outsourcing is the largest segment globally.

  In 2019, international technology outsourcing generated an impressive $66.5 billion, compared to $26 billion from business process outsourcing.

• Information technology departments are the most commonly outsourced in the U.S.

  Estimates suggest that 92% of North American organizations engaged in some form of IT outsourcing in 2019.

• High-paying jobs in specialized fields are among the most susceptible to outsourcing.

  Occupations such as computer programmers, data entry keyers, electrical and electronics drafters, mechanical drafters, and IT personnel are the most vulnerable to outsourcing, with annual wages ranging from $26,350 to $100,640.

  Additionally, actuaries, mathematicians, statisticians, mathematical science professionals, and film/video editors are also considered at risk.

Outsourcing Statistics by Company Size

• 80% of small businesses plan to outsource at least some work in 2023.

  Eight in ten small businesses in the U.S. are looking to outsource tasks this year to save time and resources.

• Large companies are 128% more likely to outsource than small businesses.

  29% of businesses with 50 or fewer employees outsource work, compared to 66% of those with more than 50 employees.

• More than half of large businesses in America utilize outsourcing.

  Data shows that 68% of large consumer product companies rely on outsourcing in some capacity.

• Accounting and IT are the most frequently outsourced departments among small businesses.

  Of small businesses that outsource, 37% delegate accounting or IT services, 34% outsource digital marketing, 28% handle development tasks externally, and 24% outsource either human resources or customer support.

  

• 71% of financial service executives outsource one or more services.

  While financial functions typically account for a minor portion of overall budgets, they are often seen as straightforward candidates for outsourcing.

Outsourcing Statistics by Most Common Reasons

• 59% of businesses outsource to reduce costs.

  More than half of global companies that depend on outsourcing do so as a cost-saving measure. Surveys indicate that most respondents use outsourcing as a strategic financial tool.

• 26% of small businesses outsource for expert assistance.

  More than a quarter of small businesses with ten or fewer employees seek expertise through outsourcing. In comparison, 17% of companies with 11 to 50 employees, 14% of those with 51 to 250 employees, and 16% of firms with 251 to 500 employees also pursue expert outsourcing.



• Outsourcing can reduce labor costs by up to 90%.

  Overseas outsourcing can enable U.S. companies to save between 70% and 90% on labor expenses, particularly when work is sent to countries with lower living costs, such as the Philippines.

Outsourcing Statistics Trends and Projections

• The international outsourcing market has expanded by $15.6 billion since 2016.

  Data from 2019 indicates that the global outsourcing market is valued at $92.5 billion, up from an estimated $76.9 billion in 2016, reflecting a growth of $15.6 billion in that period.

• The overall outsourcing market is anticipated to grow at a compound annual growth rate of 4% from 2021 to 2025.

  Experts project the international outsourcing market to grow at a CAGR of 4% over the coming years, leading to an increase of $40.16 billion by 2025.

• 8 million American manufacturing jobs were outsourced between 1979-2009.

  While outsourcing has grown, the American manufacturing sector has particularly suffered, losing 8 million jobs between 1979 and 2009, with manufacturing plants declining by 12.5% during that timeframe.

• Despite rising costs, only 4% of American companies plan to bring outsourced jobs back to the U.S.

  Even as the cost differential between the U.S. and China narrows, few companies intend to repatriate outsourced jobs, with only 4% of large corporations expressing plans to do so according to a Duke University survey.

• 70% of surveyed companies aim to outsource more work in the near term.

  A significant majority of companies plan to increase their outsourcing efforts, with 35% indicating intentions to substantially raise the volume of outsourced jobs.

• 38% of anticipated global outsourcing market growth is expected to occur in the U.S.

  Over a third of the projected growth in the outsourcing market will be linked to U.S. companies, particularly in IT and telecommunications outsourcing.

• The U.S. freelance workforce surged by 22% between 2019 and 2020.

  The number of freelancers in the United States has been rapidly increasing, driven by younger professionals seeking flexible work opportunities. The American freelance sector contributed $1.2 trillion to the economy between 2019 and 2021.

Outsourcing Statistics and the Economy

• In terms of value, 84.2% of outsourcing deals originate in the U.S.

  The U.S. is the leading source of outsourcing deals based on value, with the U.K. following at 5.2% of global outsourcing transactions.

• 42% of global outsourcing deals are attributed to North America and South America.

  The U.S. leads outsourcing in the Americas, with a KPMG report indicating that 42% of international outsourcing comes from these regions.

  In comparison, 35% of outsourcing originates from Europe, the Middle East, and Africa, while 23% is from Asia and Oceania.

• Computer and mathematical occupations are the most outsourced in the U.S.

  Labor statistics show that computer and mathematical roles are among the top jobs being outsourced, alongside business and financial operations, architecture and engineering, legal, and various sales occupations.

Outsourcing Statistics by Benefits and Issues

• Most business executives appreciate outsourcing for its financial advantages.

  Approximately 59% of businesses find outsourcing beneficial due to the cost savings and efficiency it provides.

• About one-third of professionals are opposed to outsourcing.

  Research indicates that around 33% of workers do not support outsourcing due to concerns about job security. Employees in outsourcing firms report a noticeable increase in job insecurity, with reports indicating a 66% rise.

• Outsourcing from developing nations can create more jobs in the U.S.

  While U.S. companies predominantly outsource work to reduce costs, an increasing number of developing countries are outsourcing tasks to the U.S. to access global markets.

  Argentina accounts for 17.49% of work outsourced to developed economies, followed by Thailand, Mexico, Egypt, China, Pakistan, India, Turkey, Saudi Arabia, and Nigeria.

Outsourcing FAQ

1. What is outsourcing?

   Outsourcing involves delegating a company’s internal duties to an external entity. There are two primary forms: business process outsourcing (BPO) and information technology outsourcing (ITO).

   BPO includes transferring business operations to an external service provider, while ITO pertains to outsourcing IT responsibilities. Outsourcing is often associated with offshoring, the relocation of jobs overseas to achieve cost savings. India has traditionally been viewed as a top offshoring destination.

2. What is the success rate of outsourcing?

   About 78% of businesses that outsource report positive experiences with their outsourcing partners, indicating a success rate of approximately three-quarters.

3. What percentage of U.S. companies outsource?

   66% of U.S. companies with 50 or more employees outsource, while 29% of companies with fewer than 50 employees do the same. Additionally, 68% of large U.S. consumer product firms engage in outsourcing in at least one department.

4. What percentage of American jobs are outsourced?

   Approximately 4.5% of American jobs are outsourced each year. In recent years, while the U.S. has created millions of new jobs, around 300,000 jobs have also been outsourced to other countries annually.

5. What countries outsource the most?

   The United States and the United Kingdom lead in outsourcing. In the U.S., 68% of large consumer product companies outsource, while about 48% of U.K. companies follow suit. By deal value, the U.S. dominates, accounting for 84.2% of outsourcing deals compared to the U.K. at 5.2%.

Conclusion

Outsourcing serves as a critical strategy for businesses in the U.S. and globally, allowing them to reduce costs, enhance efficiency, and accomplish specialized tasks. With around 66% of American companies outsourcing jobs, the U.S. generates a substantial $62 billion of the global outsourcing market valued at $92.5 billion.

While outsourcing is often associated with job losses in the U.S., it also provides significant advantages for American businesses. Currently, it is estimated that around 300,000 jobs are outsourced yearly, with more than one-fifth of occupations at risk of outsourcing in the future.

Data indicates that the outsourcing sector is on a growth trajectory. Anticipated to expand at a compound annual growth rate of 4% through 2025, the global industry is projected to increase by $40.16 billion by 2025.

References

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4. PR Newswire. “Business Process Outsourcing Market To Grow By USD 40.16 Billion During 2021-2025.” Accessed on September 27, 2021.

5. Reliable Plant. “68% of U.S. Consumer Products Companies Use Outsourcing.” Accessed on September 30, 2021.

6. Center for American Progress. “5 Facts About Overseas Outsourcing.” Accessed on September 30, 2021.

7. Statista. “Global Outsourcing Industry Revenue From 2010 to 2019, By Service Type.” Accessed on September 30, 2021.

8. Business Insider. “The 5 Best Countries To Outsource To In 2019—Plus, The Top 14 Outsourcing Companies Data Entry Agencies.” Accessed on September 30, 2021.

9. Outsource Accelerator. “How Outsourcing Can Cut Labor Costs By Up To 70%.” Accessed on September 30, 2021.

10. PR Newswire. “80% Of Small Businesses Plan To Outsource In 2021, Citing The Ability To Save Time, Grow Their Business And Work With Experts.” Accessed on September 30, 2021.

11. CNBC. “A Snapshot Of The $1.2 Trillion Freelance Economy In The U.S. In The Age Of COVID-19.” Accessed on September 30, 2021.

12. Devabit. “The Future Of IT Outsourcing.” Accessed on September 30, 2021.

13. Clutch. “Small Business Outsourcing Statistics In 2019.” Accessed on September 30, 2021.

14. Walden University. “Role Of Outsourcing In Stress And Job Satisfaction Of Information Technology Professionals.” Accessed on September 30, 2021.

15. Invisible Technologies. “Important Outsourcing Trends And Statistics You Need To Know In 2020 (And Beyond).” Accessed on September 30, 2021.

16. CNBC. “The New Outsourcing Hot Spots: More Developing Nation Firms Tap Workers In U.S., Canada, Europe.” Accessed on September 30, 2021.

17. U.S. Bureau of Labor Statistics. “Service-Providing Occupations, Offshoring, And The Labor Market.” Accessed on September 30, 2021.

18. KPMG. “Global IT-BPO Outsourcing Deals Analysis.” Accessed on September 30, 2021.

Author

Elsie Boskamp

Elsie is an experienced writer, reporter, and content creator. As a leader in her field, Elsie is best known for her work as a Reporter for The Southampton Press, but she can also be credited with contributions to Long Island Pulse Magazine and Hamptons Online. She holds a Bachelor of Arts degree in journalism from Stony Brook University and currently resides in Franklin, Tennessee.