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What Industries Outsource the Most?

What Industries Outsource the Most?

Outsourcing isn’t just a trend – it’s an excellent business strategy that many industries implement. 

Outsourcing your business processes helps a company improve efficiency and increase productivity while reducing costs. Industries that consistently have repetitive and time-consuming tasks often outsource to get the job done.

Almost every industry has outsourced one or more of its processes at some point. Small “mom and pop” shops and large Fortune 100 companies outsource. 

Let’s dive in and go over the top industries that run on outsourcing. We’ll also cover the most outsourced functions and the benefits. 

Business Functions Outsourced Most

The truth is, almost every business function can get outsourced successfully. However, some duties are more beneficial to outsource than others. Time-consuming tasks and tedious processes are high on the list of top functions outsourced. Also, tasks that require a specific skill set are not always on staff with most companies are often outsourced. 

Here are the top business functions outsourced:

IT Services

Technology is ever-evolving, and many companies just can’t keep up. The need for process automation, data security, and artificial intelligence solutions is growing. Having top-notch experienced and capable IT professionals on staff is costly. For these reasons, IT is the top business function outsourced. 

The IT industry brings in a whopping $413 billion annually. It’s an industry run on outsourcing, as around 70% of that annual revenue comes from outsourced work. Businesses of all sizes outsource some or all of their IT work to reap the sweet benefits of having access to highly skilled professionals at a fraction of the cost. 


Accounting is the second most business function outsourced, and the industry is run on outsourcing. Accounting responsibilities can be challenging for some companies without a certified public accountant or financial expert on staff. 

Errors in accounting work can lead to headaches and costly problems. So many companies put the task in the hands of professionals. 

Outsourcing accounting work allows a company leader to feel confident their books are accurate and always know where the business stands financially. Many accounting outsourcing providers utilize the latest software that helps the back-office processes run smoothly. 

Customer Service

Customer service is one of the most important tasks in a business. It’s a massive part of what makes a business succeed or fail. Delivering the first-class personalized service consumers expect today takes having skilled professionals on the job.

Businesses of all sizes outsource their customer service to provide exceptional care while remaining focused on core business functions and growth. The outsourcing provider handles all customer service inquiries through phone, email, SMS, online chat, and social media.

The third-party company acts as part of the organization, so clients feel they are getting service directly from the company they purchased from. Outsourcing customer service has proven an excellent business strategy to improve efficiency and deliver outstanding service. 


Advertising and marketing are critical functions that help businesses let the world know about their brands. Without effective marketing, a company won’t survive. Outsourcing marketing allows a business to put the essential marketing and advertising duties in the hands of experts who know how to market effectively. 

Marketing and advertising is an industry that’s run on outsourcing. Marketing firms are always hired by another company to creatively get people interested and make their business stand out positively to consumers.

Expert marketers have contributed to the success of many companies. But marketing takes time for the professionals to work their magic, so it’s best to leave it to the experts that are solely dedicated to it. 

Human Resources

The human resources outsourcing market in the US is worth around $9.7 billion and growing. Over the next few years, it’s expected to grow at a rate of 4.7%. Why would a company outsource such a personal function? Let’s talk about it. 

There’s a growing focus on employee happiness and company culture. A strong company culture will attract top talent and, most importantly, retain them. Organizational culture also builds trust, employee cooperation, and more efficient decision-making. 

Outsourcing human resources to professionals helps to ensure employees follow company culture and know the policies and expectations. The outsourcing provider has professionals who find solutions as problems occur. The outsourcing provider will update and revise any policies and practices as needed to comply with the law. 

Outsourcing HR responsibilities allows companies to provide more competitive offerings tailored to their employees’ needs. Having a single point of contact, access to the latest HR software, and streamlining payroll services are advantages of human resource outsourcing. 


When it comes to manufacturing, offshore outsourcing is most common. Let’s face it, overhead, and labor costs are high in the US compared to many other countries overseas. Many countries offer a lower cost of living which trickles down to lower salaries and infrastructure costs. 

Many companies choose offshore outsourcing to get their products made for less money while maintaining quality. It’s the business strategy that has helped thousands of companies grow. They’re able to offer their products at a competitive price and gain more customers. 

Industries That Outsource the Most

Many small one-person shows and large Fortune 100 companies outsource to increase efficiency and reduce costs. While almost every industry outsources at least one business function, some industries more commonly outsource regularly. 

Let’s go over the industries that outsource the most and what tasks they’re outsourcing. 

1. Tech Industry 

While IT services are commonly outsourced, the tech industry is one of the top customers of outsourcing providers. These tech companies typically keep their core functions in-office and outsource activities like IT and software development, virtual assistants, customer service, and human resources.

Without great outsourcing partners, organizations like Google, Microsoft, and Apple might not be as successful today. Without a doubt, these companies create impressive technology, but that’s also thanks to their highly-skilled outsourcing providers for helping them along the way. 

2. Healthcare Industry

Healthcare outsourcing is a growing trend as providers need to remain focused on patient care. To do this, they must run efficiently. Handling all the time-consuming paperwork, billing, HIPPA compliance, and other back-office tasks take away from the focus on what’s most important – the patient.

Many healthcare providers are even outsourcing customer service to deliver exceptional care to their patients and retain them. With a dedicated team to handle the labor-intensive back-office activities and servicing patients, the healthcare professionals have more time to give patients in-office. 

3. E-commerce and Retail Industry

E-commerce and retail companies can receive a ton of customer service calls daily. With the fluctuation of call volume, they often find themselves understaffed or overstaffed. To deliver great customer service fast, companies are outsourcing this critical activity. 

By utilizing an outsourcing provider, these companies can boost customer satisfaction, increase retainment, and improve their bottom line – a win-win in business. 

4. Financial Industry

With the rise of fintech companies, many financial institutions need to switch gears to keep up and stay in the game. Outsourcing allows financial firms to improve technology and create innovative solutions to offer a better customer experience. Of course, outsourcing also helps them improve efficiency and increase productivity

Financial firms outsource many activities, including customer service, software development, data entry, and other essential back-office duties. By outsourcing, the business can focus less on risk mitigation and servicing customers and more on core business functions, including growth planning and the customer experience.

5. Insurance Industry

Insurance agencies deal with customer service inquiries, prepare and review documents, and send policy information. With all the time-consuming detailed duties, agencies don’t have time to put in the work to scale. 

Many insurance agencies realize they need to get some of these labor-intensive tasks off their plate, as keeping them in the office is inefficient. Today, many agency leaders learn they are better off outsourcing some activities to cut costs and improve efficiency. 

By outsourcing some of its essential duties, an insurance agency can focus on growing its book of business while a team of professionals serves its clients. Outsourcing to a provider with a global footprint and knowledge of the strict compliance regulations for an agency helps reduce the agency's risk. 

6. Utility Industry 

The utility industry consistently has a high volume of calls almost continuously. It requires a call center to handle the customer service inquiries. Utility companies are in the business of providing water, electricity, and gas. Rather than running a call center, many utility providers hire a customer service outsourcing company to handle their customers' inquiries. 

Utility companies often outsource billing, document processing, and customer service as a cost-effective way to handle these essential tasks. Some utility companies hire contractors to do some of their labor-intensive work in the field. Maintaining and updating their infrastructure requires a specific skill-set, so the companies hire laborers to get the job done when needed. 

7. Government 

The government is no stranger to outsourcing. Outsourcing allows the government to meet the needs of citizens without needing a team on staff to do so. The government relies on outsourcing providers to provide information, process documents, and deliver services as needed. 

By utilizing a reputable outsourcing provider, the government can ensure as the volume of needs fluctuates, the citizens are always serviced quickly and effectively.

8. Transportation and Shipping Industry 

The transportation and shipping industry handles a lot of logistics and freight moving. However, the industry is extremely competitive, which leaves low-profit margins. Many companies outsource their processes to cut operating costs and maintain a competitive edge. 

Benefits of Outsourcing

    1. Cost costs — Operating costs to run a business are high for most. Outsourcing is a way to get the essentials done for less money. 
    2. Frees up time — As all business owners know, there’s just not enough time in the day to get everything done and leave the office at 5 o’clock. Outsourcing some of your business functions means the essential tasks are getting done without you needing to be involved. The extra time allows leaders to have a healthy work-life balance, which is awesome. 
  • Additional focus time When internal staff isn’t bogged down with time-consuming and tedious tasks, they can focus on the core business functions and company growth. 
  1. Increases productivity — Outsourcing is like an all-hands-on-deck approach to running a business. It’s getting an outside team to pitch in to maximize productivity. Getting more done typically translates to more revenue when done correctly. 
  2. Improves efficiency — Multitasking may seem like a reasonable way to get everything done, but the truth is it isn’t efficient. Having teams solely focused on specific tasks that they specialize in is the best way to get things done efficiently.
  3. Access to higher skill sets — One thing is certain: higher skill sets come at a higher cost. Many companies just can’t afford the high salaries of the best of the best. But when they outsource, they can.

Outsourcing gives the advantage of only paying for services when you need them. Offshore outsourcing also provides access to highly skilled individuals who are educated and experienced at specific skills at an affordable cost. 


Almost every business can benefit one way or another from outsourcing. Industries that outsource the most commonly have a bunch of time-consuming, labor-intensive, and repetitive tasks. Companies of all sizes outsource, though. Some outsource more activities than others, but they typically keep the core business functions in the office. 

IT support, accounting, and marketing are some of the top industries run on outsourcing. Reducing cost, improving efficiency, and increasing productivity are commonly the driving forces behind outsourcing.

Are you ready to jump on the bandwagon and outsource some of your business processes to reap the sweet benefits of outsourcing? If so, contact Awesome CX today. 



Customer Service Expectations Are Rising - Is Your Business Keeping Up? | Forbes

Companies 'Outsource' Because That's Where The Sales Are | Forbes

Understanding and Developing Organizational Culture | SHRM