6. US-affiliated companies overseas employ 14.4 million workers.
(The Balance) (Quartz) (Marketplace)
The US currently outsources 14.4 million jobs, more than twice the number of unemployed people nationwide before the COVID-19 pandemic (5.9 million). Since the pandemic started, unemployment rose to 12.6 million, which is still lower than the total number of outsourced jobs.
In theory, if all those outsourced positions were brought back home, the US wouldn’t have any unemployed people. To make matters worse, if it weren’t for all the jobs lost to outsourcing, statistics reveal that millions of part-time workers in the US could be hired on a full-time basis.
7. 43% of all outsourced US jobs are in the IT sector.
(Venture Beat) (CodersLink)
In 2015 alone, US tech companies outsourced more than 211,000 jobs to overseas contractors. Experts claim that Silicon Valley jobs are most at risk in this era of increased tech outsourcing.
Commonly outsourced processes in the sector include app development and maintenance, data centers, and customer support. Frontend, backend, and full-stack developers are among the most common positions outsourced by tech startups. IT outsourcing trends show that web hosting, system support, and disaster recovery are also often outsourced to third parties.
8. India is the world’s top country for business process outsourcing.
This is easily explained by the fact that the country offers a skilled, cheap, and educated workforce fluent in English. According to a 2018 report, India has at least 1,140 global in-house centers, more than any other country in the world.
Hundreds of the world’s largest companies currently outsource to India, stats on outsourcing reveal. The financial services giant Barclays employs by far the most locals, with more than 16,000 people already working in their Chennai-based facility and a further 8,800 in their newly built center in Pune.
9. 20% of US companies outsource their entire IT support abroad.
At the same time, 15% of US-based companies outsource their entire app maintenance and development process to suppliers in other countries, and 10% do the same for their master data management. These trends in outsourcing are expected to continue in the future, with between 9% and 11% of businesses planning to outsource more of their IT operations offshore.
10. Ukraine is the leading IT outsourcing destination in Central and Eastern Europe.
With a steadily increasing IT workforce, Ukraine has become one of Europe’s top outsourcing destinations for software development. The country is currently home to more than 1,600 IT outsourcing companies and has about 200,000 IT professionals, double the number it had just five years ago.
Ukraine’s job outsourcing statistics reveal that the country’s IT outsourcing market was valued at $2.7 billion in 2015 and is expected to reach $5.7 billion by the end of 2020, a 111% increase over a 5-year period. Some of the companies outsourcing their operations to Ukraine include tech giants like LG, Microsoft, Slack, and Facebook.
11. More than 800 companies outsource their call centers to the Philippines.
(DBOS) (Flatworld Solutions)
Some of the organizations with call centers based in the Philippines include Chevron, Safeway, and Citibank. According to statistics on outsourcing, the Philippines’ outsourcing industry is projected to surpass the $50-billion mark in 2020. This marks an increase of more than 100% since 2016. Most of this revenue was generated by call centers, which is why the country has been dubbed the “Call Center Capital of the World.”
12. Under NAFTA, the US lost more than half a million jobs to Mexico.
The North American Free Trade Agreement (NAFTA), which came into force in 1994, was supposed to make cross-border trade easier for North American countries. And while it did bring many benefits, United States outsourcing statistics show that, by 2010, the country had lost 682,900 jobs. All these jobs went to Mexico, and even though 116,400 of them were lost to the global financial crisis of 2008 and 2009, the US still lost 566,500 jobs across different industries.
Things weren’t that great south of the border, either. Despite the influx of new jobs outsourced by US-based companies, the local agricultural industry suffered severe losses. Research reveals that close to 1.3 million Mexican farmers lost their jobs over that same 16-year period.