Which Industries Outsourced the Most?
On reason companies outsource their operations is to increase efficiency, although the amount of outsourcing can vary from one organization to the next. It is possible that some companies choose to outsource non-mission critical functions while others need the extra hands to complete a project. The overall objective of outsourcing is for the company to better concentrate on their core mission as a business.
In summary, companies outsource for these reasons:
- Improve efficiency
- Focus on mission-critical activities
- Augment organizational capacity
- Improve the quality of products and services
Based on market trends and analysis of variance departments of the organizations can guide us that which department is outsourcing the more than other ones.
According to a Deloitte study, these functions are usually outsourced:
- IT
- Finance
- Sales and Marketing
- Administrative
Amount of the IT Outsourced Activities
In 2016, Deloitte conducted a global research revealed that IT was the most outsourced function among the respondents, with the percentage of 72. The survey involved 85 percent of organizations global companies with $1 billion or more in sales revenue to determine the industry outsourcing trends. The study comprised of:
- 27 percent respondents from organizations having revenue between $1 billion to $5 billion
- 25 percent from with revenues of $5 billion to $15 billion
- 11 percent with revenues of $15 billion to $25 billion
- 23 percent with revenues of $25 billion and more
Respondents were from more than 25 different sectors.
Finance
Finance is the second-most outsourced function globally owing to the accessibility of specialized accounting firms. Accounting for large organizations could be very challenging, and managing all finances by themselves will distract them from their core business. Another important reason corporations outsourcing their finance functions is to prevent fraud. Outsourcing firms have established checks and balances that make it difficult for its employees to create fraudulent activities.
Additionally, maintaining finances for medium and large-scale firms requires certified public accountants and financial experts that use industry-standard systems, processes and software.
Sales and Marketing
According to a study by McKinsey, the use of automation and machine learning within the enterprise. Specifically, around 40 percent of sales activities can be automated using technology. Because of this, marketing will need specialist knowledge that is better outsourced than performed internally. Although digital media marketing plays a greater role in current times and there needs a smaller team, there is room for businesses to outsource especially to launch campaigns and learn the ins and outs of this new channel.
Administration
Most traditional organizations perform this function internally. With the emergence of new administrative software, enterprises are starting to outsource this function. One example is employing virtual assistants, a role that is becoming popular in the modern organization.
Give Outsourcing a Try
If you are looking to augment your lean team through outsourcing, Yempo can provide you a pool of dedicated, skilled talent who can perform various functions. To learn more, contact us today!
