Make Money Online With Outsourcing

Posted : admin On 13.09.2021

Outsourcing has been a hot trend since 1989. Over the past three decades it has become an integral part of business management on a global scale.

That doesn’t mean everyone approves. Opinions vary from highly negative to wildly positive.

However you feel about outsourcing, one thing is certain: In 2020, the gig economy is flourishing and has completely overtaken some of the biggest industries in the world.

This is why we think it’s important to dig deeper into the newest data and pull out all the most important outsourcing statistics for 2020.

Key Statistics on Outsourcing – Editor’s Choice

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  1. The idea in principle is simple. You find clients with a work need (either ongoing work or project based) and find staff in other countries who can do that work. Many businesses outsource the.
  2. Learn Professional Email Marketing, Earn money online List of freelancing and outsourcing training institutes in You should know before start freelancing.
  3. Saving money is secondary, but still a top priority. About 45% of companies outsourcing IT functions say that their information technology outsource projects are meant to save money. About 46% say outsourcing lets them access skillsets that aren’t available in-house. 71% of financial service executives outsource or offshore some of their.
  4. He might turn to outsourcing to solve these problems and help his company succeed. Outsourcing is when a company hires another individual or company to perform a specialized task, whether it's making.
  • More than 654,000 Californians have lost their jobs since 2001 due to outsourcing to China.
  • There are 57 million freelance workers in the US.
  • Over 93% of organizations are considering or have adopted cloud technology to improve outsourcing.
  • Business Processing Outsourcing (BPO) market size is expected to reach $405.6 billion by 2027.
  • Focusing on core business is a main motivation for outsourcing IT functions.
  • Accounting and IT are the most commonly outsourced jobs in the SME sector.
  • More than half of all companies use third-party support teams to connect with customers.
  • The global IT outsourcing market is expected to grow by $98 billion by 2024.

1. The market size for global outsourcing reached $92.5 billion over the last year.

Global outsourcing revenue has been on an unstable trajectory since 2012. Revenue peaked at $104.6 billion in 2014, then dropped to $76.9 billion two years later. The latest outsourcing statistics show that the trend of rising and falling revenues has continued, though the market does seem to be stabilizing somewhat.

2. About 300,000 jobs get outsourced out of the US each year.

US outsourcing statistics like this one make it easy to understand why so many people view outsourcing negatively. Negative sentiments are especially strong when there is a big economic crisis; we’ve just lived through the second largest recession in history, and the full effect of the global pandemic is yet to be seen.

It is not surprising, then, that during the height of the Global Recession, 86% of Americans blamed outsourcing for exacerbating the crisis.

3. More than 93% of organizations are considering or have already adopted cloud services to improve outsourcing.

The move toward cloud technology will help companies of all kinds be more capable and responsive while allowing them to rapidly expand their offerings in existing and new markets. Stats on outsourcing show that a third of all organizations are willing to accept an increase in operating costs if they get access to the cloud in return.

This means that for a large number of businesses, the main motivation for this move is not to lower the costs by cutting jobs, but to be more competitive and have greater possibility to innovate.

4. Data security is a top concern for 68% of outsourcing companies who are considering moving to cloud technology.

As cloud technology continues to disrupt the outsourcing industry, some of the main concerns that companies have are related to information security and compliance with laws.

IT outsourcing statistics point to an additional concern that has everything to do with performance: 45% of outsourcing businesses have worries that a cloud-based service may not be stable or reliable enough. Some 35% of respondents identify fear of losing intellectual property as their biggest concern.

5. Over 44% of chief intelligence officers say that they are more likely to use outsourcing suppliers than they were just five years ago.

Make money online with outsourcing jobs

The latest offshoring statisticsshow that the IT sector is moving toward outsourced suppliers most quickly. In fact, about 64% of outsourced offshore technology functions have to do with software application development. About 51% of technology executives say they outsource application and software maintenance, and 40% outsource their data centers.

6. Saving money is a major motivation for outsourcing IT.

Freeing up resources to focus on core business is the most widely cited reason for outsourcing IT functions, at 49%. Saving money is secondary, but still a top priority. About 45% of companies outsourcing IT functions say that their information technology outsource projects are meant to save money. About 46% say outsourcing lets them access skillsets that aren’t available in-house.

7. 71% of financial service executives outsource or offshore some of their services.

Financial companies are among those that outsource the most. About 70% of retail and transportation firms do the same, while job outsourcing statistics show that the top spot remains reserved for pharmaceutical companies. Java programing for mac. Roughly 82% outsource services.

8. 83% of financial companies and institutions are implementing or considering implementing robotic process automation.

The trend toward automation is accelerating, as outsourcing statistics like this one show. Robotic process automation is often the first step a company can make toward digital labor, and most of the financial and other industries are already implementing it.

Make Money Online With OutsourcingMake Money Online With Outsourcing

What’s more, 81% of financial companies are satisfied with their robots, meaning that continued growth is all but guaranteed. This trend is currently most visible in HR and invoice processing sectors, where bots are increasingly replacing people.

9. Outsourcing dropped from 11.9% in 2017 to 9.4% of IT budgets in 2018. However, it increased to 12.7% in 2019.

A year-on-year comparison of outsourcing statistics shows a strange and increasing rift between larger and smaller companies that outsource jobs.

IT security and data center operations saw the biggest reductions in outsourcing two years ago, with a 6% decrease compared to the year before. The drop was caused mainly by small and medium businesses turning to cloud technology, thus eliminating the need to outsource the maintenance of internal IT infrastructure.

A more recent study found that the percentage of the total IT budget spent on outsourcing increased to 12.7%. This increase was primarily driven by small businesses preparing for a possible recession.

The global IT outsourcing market is expected to grow by $98 billion during 2020-2024, rising at a CAGR of 5%.

My first foray into outsourcing was before I even knew anything about internet marketing. I had read a blog post on Tim Ferriss’s blog and it blew my mind that I could hire people in India to work for me…all without leaving my apartment.

I had an internship at the time for a gym down in Ft. Lauderdale, FL, and one of my assignments was to create a calendar of all upcoming gym-related events. In a moment of genius (or laziness), I decided to try out this whole “outsourcing” thing to create our events calendar.

I had someone from BrickWorks India, gave them my instructions, and patiently waited for my calendar to be completed.

48 hours later, it was done — and done EXACTLY to my specifications. Which was awesome. I know that a lot of people have outsourcing horror stories (and I do as well, though that’s for another post), but my first experience was flawless. Needless to say – I was hooked.

Since then, I have outsourced hundreds of projects to people all over the world, from Romania, to the Philippines, and to India. I’ve had logos designed, websites created, apps coded, linkbuilding done, and so much more that I can’t even remember at this point.

I’ve become pretty experienced in the “Art” of outsourcing – and because of that, Michael asked me to write you guys a post on some tips for better outsourcing — how to make sure you avoid a nightmare experience, and enjoy the true benefits that outsourcing can offer to you and your business.

Know What You Want

The most important key in outsourcing successfully is knowing EXACTLY what you want. One of the biggest mistakes I see people make when they outsource is that they give vague instructions, and expect the person they are outsourcing to to understand exactly what it is that they want.

The simple fact is this: no one is going to understand your vision unless you tell them explicitly what your vision is. If you just say “Make it kind of look this” without providing specifics, you are likely to be disappointed with the results. This mistake usually ends with you wasting a ton of time trying to get your project right.

So, in order to avoid this, you need to figure out exactly what it is that you want done. If you want a website designed in a certain way – do a wireframe (I will literally draw it out on a piece of paper, scan it, and e-mail it to my designer). If you want an app or piece of software to provide a certain function, make sure that it is outlined completely before you ask the outsourcer to do the work. For logos, provide examples of what you’re looking for with specific instructions.

A lot of people make this mistake when they start outsourcing — and it almost always ends poorly. So make sure that you take the time to figure out exactly what it is that you want your outsourcer to do, before you ask them to do anything. And, along these lines, you want to make sure you’re very specific in your job description as to what you are looking for.

Where To Find People To Work For You

There’s a couple of great sources to find employees online, and I’ll outline a few here:

1. oDesk — While my experience with oDesk is relatively limited, I have had quite a bit of success with the employees I’ve hired from there. They are usually the cheapest, but they provide good quality work. oDesk also has internal time tracking, and will take screenshots of your employees desktop while they work, so that you know they are on task.

2. Elance — I’ve had the most experience with Elance, and out of all of the sites that I’ve worked with, it’s been consistently the highest quality. While the workers here are usually on the more expensive side, you definitely get what you pay for. I’ve never had a bad experience with anyone that I’ve hired from Elance.

Make Money Online With Outsourcing

3. Craigslist — While not really “Outsourcing” as Craigslist is generally local people, I still list it here as it is a very, very useful resource for finding employees. You can still get cheap work, and depending on how big of a city you live in, you can usually get responses very quickly. However, I will say that Craigslist is best for finding employees that are local (that you will see face-to-face) as Craigslist does not protect you like Elance or Odesk if you are just hiring someone to work for you online.

Some other resources for hiring that I have only limited experience with are:

Guru
RentACoder
SitePoint
Freelancer
OnlineJobs.ph

Getting Started With Your Outsourcer

Before you dive in and give your outsourcer the reins to your business, you want to make sure that they are reliable, provide quality work, and communicate well with you, first. You don’t want to give them a huge project (that is important for your business) before you even know if they are legitimate or not. That is simply a recipe for disaster. Trust me, I’ve been there.

Make Money Online With Outsourcing Agencies

What you want to do is give them a small test project first. Something simple that is of minimal consequence to your business. For example, if you want them to eventually redo the design of your entire site, maybe have them redesign a banner or a specific portion of your site first, to test their skill.

The biggest thing you are looking for in this test, aside from actual skill — is reliability. Will they get the project done when they say they are going to get it done? I can tell you from personal experience that there are a TON of skilled workers out there to hire, however, only a small portion (I’d honestly say less than 5%) of them are actually reliable and can get things done by specific due dates.

And when you find the reliable ones – make sure that you hold onto them, as they are an extremely, extremely valuable resource to you and your business.

Keep Things Business

Another big mistake that you can make working with outsourcers is becoming friends with them. Now, that might sound a little strange, but hear me out. If you are hiring employees on a regular basis to do projects, there WILL eventually come a time when you have to fire someone because they are not getting the job done. It is an unfortunate inevitability when working with employees. I honestly wish everyone always got their work done on time, but that simply does not happen.

When the time comes to let go of someone because they aren’t getting their work done, if you are emotionally attached to them (by having become their friend), it makes it much harder for you to fire them. You might give them second chance after second chance because you don’t want to hurt their feelings. This is a mistake.

This is going to sound cold hearted – but what it comes down to is this. You have to decide which is more important to you – this persons hurt feelings, or your livelihood. If they are not getting the work that you need them to get done on time, it is THEIR fault that you are firing them, and you should not feel bad about it. They are taking advantage of you and you need to let them go.

If you are truly planning on being successful online, this is a hard lesson, but one that you need to learn early on, or it can be devastating to your business.

Make Money Online With Outsourcing

So because of this, it’s important to separate business and friendship – and keep them separated!

Questions? Comments?

Make Money Online With Outsourcing Services

I hope this post was helpful to you guys — let me know in the comments if you have any outsourcing or hiring questions, I’ll be here to respond.

And, if you like what I wrote here, chances are you’ll probably like our blog over at Real World Traffic. Make sure to check it out as well!