Outsourcing : The Current Outlook

While we write this article in the mid of 2022, the world has already borne the scourge of a global pandemic, the current work trends have hit massive changes, the costs of running businesses have vehemently changed and the word “office” has become just a concept. Not only have we stepped into a new era of workforce changes but also a changed world in which the way of doing business has undergone legacy changes.

While we narrow our focus toward the current trends in outsourcing, we cannot help but notice how the last two years have reshaped them. Take the simple example of administrative costs of facilities and other allied physical infrastructure-related costs.

If we were to believe the statistics, the US alone creates more than 300,000 outsourced jobs to India. The IT outsourcing alone will witness a behemoth growth of ₹ 8,830 billion approximating to CAGR growth of 7.25% by 2025. IT alone shall lead the wave of changes, contributing to a significant share of revenues.


The revenue change figures are depicted below. These changes have been incorporated taking into account the Russia-Ukraine war.


An interesting observation to be made is that IT also leads in the Average Spend per Employee by segment.


While the US still leads in the market of outsourcing business, there has been a significant increase in the outsourcing needs from countries like Japan, the UK, and Germany too.

The disruption in the IT industry and also the need to support applications has increased India’s demand as a favored outsourcing location amongst other nations. Also, contributed by the fact that India sits conveniently in a geographical location that can serve the US, UK as well as Australia during the wee hours. A global shift in companies cutting down and saving on costs has further fueled outsourcing to India. While speculators still question whether India can always remain a globally preferable outsourcing hotspot and the sustainability of growing costs in India, companies like us, strive hard to provide the same level of service at the legacy costs.

We will be writing many more research-based articles on this topic and how outsourcing to Decyphr helps you to save on your capex and opex costs in the upcoming days. Stay tuned.

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