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Outsourcing is meant to be a business practise where an organization hires a third party to provide them for the framed services, operations and tasks. It won’t be wrong to say that outsourcing honestly has changed the picture of the marketplace as a whole and the traditional recruiting system and values have somehow overshadowed by the same. No matter if it is a small-scale business or a big enterprise, every other business entity is now inclined towards outsourcing which has changed the numbers in the marketplace drastically. As found out, the global outsourcing market was worth $132.9 billion in 2020 and is expected to grow by 1.6% the same year.


Here are Outsourcing Trends in 2020:

  • Cost is secondary: Believe it or not, but businesses have shifted their focus from the budget or cost spent for outsourcing, but on the process and people now. It is one preeminent factor for all, to hire professionals and experts from all around the globe who are ready to put their talent on the table and get the job done and the process is not solely price-driven now. More than 80% of logistics leaders are planning to increase their outsourcing budget by more than 5% by the end of 2020.

  • Increased competition: Though India still holds the position as the leading country in the outsourcing country as per Tholons 50 Digital Nations and A.T. Kearney Global Services Location Index of 2019, countries like China, USA, Mexico, Ireland and the Philippines are some active competitors of India as of 2020 and the number is increasing to a great extent. 68% of the organization in the United States prefer outsourcing their services to low-cost countries in addition to small-scale firms.

  • Customed Agreements: Custom outsourcing contracts allow both ends of the party to agree and settle on mutual terms and conditions regarding pricing, service, delivery, speed, quality, flexibility and associated costs. The move will inspire much more outsourcing businesses to offer flexible contracts in the marketplace.

  • Variety of services: Outsourcing is indeed here to say, outsourcing started with working on small operational tasks like data entry, but now have expanded too much that big organizations are opting for outsourcing to get the job done and is believed that by the end of 2020, many critical and high-end processes are to be outsourced by businesses because of which the outsourcing organizations will have to keep a check on the quality and timing of the work at all costs. According to studies, 66% of big companies are more likely to opt for outsourcing than small companies.

  • Delivery of results: With the increasing number of outsourcing services adding up to the list, the pressure of expected results will rise up high in the marketplace by the third parties so that to attract more business. Security check, cost, error-free results and much more will have to be kept in check of.

Especially amid the pandemic, businesses are now switching and opting for multiple platforms- cloud, social, mobile etc., and as because outsourcing has been able to appropriately and easily proved to be adaptable to an ever-changing environment.


We here at Shergroup have been assisting our clients for over 40 years now as an outsourcing company and can get the job done for you, we have been working with the best of professionals and experts from India, South Africa, US, UK and more and have gulped in the criteria and conditions quite well. In any case, we can help you solve and support your business issues, do get in touch with us as soon as possible.

Content Writer​


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Last updated | 19 July 2023

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