Running a business entails multitasking numerous roles, which can be draining. All that routine work can distract you from the main tasks of your business. That is why it is crucial to decide what services should you outsource that will prove worthwhile in the long run and also fit into your business.
Outsourcing—getting assistance from external service providers for jobs that would normally be done in-house—has been a big deal since the 1990s.
Globally, the business process outsourcing (BPO) market is expected to grow from USD 406 billion in 2025 to USD 583 billion by 2030, at a CAGR of 7.5%.
Procurement outsourcing was estimated to be worth US$8 billion in 2024, and by 2030, it is expected to grow to US$17.6 billion.
These numbers underscore outsourcing’s pivotal and growing role in global business operations. Infact, it has been a go-to strategy for many leading companies over the years.
And when done right, outsourcing can save time and money by efficiently using resources and potentially lowering labor costs. According to a Mordor Intelligence report, outsourcing is becoming more appealing to large and mid-market businesses as it moves away from cost arbitrage and toward AI-enabled, outcome-driven models.
Another perk is flexibility. You can outsource as much or as little as you need, for a short-term project or on an ongoing basis. Nearshoring, or outsourcing to countries that are close by or share similar cultures, speeds up projects and fosters teamwork. For instance, U.S. companies are increasingly looking to Latin American nations, which can cut project duration by up to 25%.
Consequently, it has established itself as a key element in enterprise resource planning.
For instance, Airbnb and Uber relied on outsourcing to scale up from small start-ups to billion-dollar giants in no time.
Even established giants like Google and Microsoft rely on outsourcing—Google for IT support and data management, and Microsoft for global customer support—enabling them to focus on core innovations and efficient operations.
It’s a fact today you can outsource nearly all parts of your business functions. However, simply because you have the means does not mean you should do it all. So, it’s important to understand when to outsource and when not to.
Your company can gain a lot by delegating some non-core activities.
So what are non-core activities? They are tasks that do not constitute the primary focus of your business.
For example, if you operate a healthcare facility, your primary focus is providing quality patient care. Non-core activities in this context include medical billing, patient scheduling, and administrative support.
So, here are the business processes and functions that you can outsource to enjoy the benefits of outsourcing.
You should outsource customer service:
Customer support is an essential part of every business and it’s very important to be taken care of. It’s quite problematic for large companies or e-commerce stores that experience seasonal spikes in demand to manage large customer service teams.
Customer service and contact center work is now the single largest slice of BPO activity (32% of BPO revenue), and the global call center/contact center market is worth hundreds of billions of dollars.
Which is why it’s one of the business processes that most companies outsource. 83% of small and medium-sized businesses currently outsource tasks, with 59% doing so specifically to save costs, highlighting how outsourcing has become mainstream among SMBs.
Furthermore, outsourcing allows for around-the-clock customer support, giving you an upper hand over your competitors and enhancing your brand image.
Thus, if you plan to cut costs and improve your customer experience (CX), outsourcing your customer support would be a smart move.
For example, Dell actively outsources its customer support, employing external teams in regions like India and the Philippines. This strategy allows Dell to efficiently handle a high volume of inquiries and provide round-the-clock support, especially during peak times or product launches.
Companies outsource IT services:
IT is another major sector for outsourcing. According to data, the average amount spent on IT outsourcing by businesses in 2023 was around $132.1 billion, while it is expected to reach $777.7 billion by 2028, growing at an annual rate of 11.07%.
The leading areas for IT outsourcing are web hosting, software development, and administration, which account for about 63.5% of the market value.
As an entrepreneur, your workload is always heavy. You’ve got to think about sales, marketing, product development, and many other things.
The last thing you want to worry about is your IT infrastructure. Unfortunately, this will be a concern if you don’t have a dependable IT team. For this reason, you should outsource your IT services.
A notable example of a company that has utilized IT outsourcing is General Electric (GE). Historically, GE outsourced a significant portion of its IT operations to enhance efficiency.
Human resources:
Human resources (HR) has greatly evolved beyond hiring, firing, and employee satisfaction. Today, HR encompasses a wide range of functions, including talent acquisition, employee engagement, compliance with labor laws, performance management, and workforce planning.
In recent years, HR has transformed into a strategic powerhouse. For instance, outsourced HR providers are integrating AI-based recruitment and analytics; 42% of HRO providers utilized AI for resume screening and talent matching, while cloud-based payroll systems saw a 21% adoption increase.
Additionally, 57% of companies now outsource at least one HR function, achieving an average ROI of 191%.
With so many critical responsibilities, the HR department often finds itself overwhelmed, requiring significant time and effort.
Key tasks, such as background checks, training, payroll administration, benefits management, and workplace safety, demand meticulous attention. These functions are not only essential for maintaining compliance and fostering a positive work environment, but they can also be incredibly time-consuming.
By outsourcing these HR services, companies can free up valuable resources and focus on their core business objectives. Outsourcing not only alleviates administrative burdens but also brings tangible cost savings. Businesses can reduce HR administrative costs by up to 30%, with some reporting payroll savings of $3,000 per month for large businesses
For example, Walmart is a well-known company that has successfully outsourced its HR functions to streamline operations and enhance efficiency.
Similarly, small businesses like Tarzan & Jane have also chosen to outsource their HR services, enabling them to reduce costs and capitalize on the benefits of outsourcing.
You should outsource digital marketing:
According to a survey by HubSpot, approximately 63% of companies reported outsourcing at least one aspect of their digital marketing strategy, whether it be SEO, content creation, social media management, or paid advertising.
This trend is driven by the many benefits that come with outsourcing digital marketing services.
For instance, if you are a small business looking to outsource services like social media marketing or search engine optimization, you may find that hiring full-time employees would be significantly more expensive than partnering with a digital marketing firm.
A Deloitte study highlights that businesses outsourcing marketing functions report cost reductions of 20–30% on average, effectively converting fixed expenses into scalable, variable costs.
Additionally, many tools used in digital marketing require monthly subscriptions, which you may not need continuously throughout the month.
As a result, outsourcing digital marketing has become one of the most common practices among companies. Rather than managing marketing campaigns and resources in-house, it is often more efficient to outsource these functions.
Several prominent companies outsource their digital marketing services, including HP, Ricoh, ESPN, L’Oréal, and Western Union.
Data entry tasks can be outsourced:
Outsourcing data entry tasks, such as processing orders, cataloging, scanning, and indexing, can significantly streamline operations. Experts estimate companies can save 60% on operational costs by outsourcing data entry.
For instance, Amazon effectively outsources its data entry processes to manage vast amounts of product information and customer orders efficiently. This approach allows businesses to save money while achieving accurate results through the expertise of an external team.
However, it’s essential to exercise caution when handling sensitive information, such as credit card numbers or social security numbers. Despite these concerns, outsourcing remains a practical solution for the majority of data entry tasks.
To mitigate risk, many providers implement end-to-end encryption (AES-256 at rest, SSL/TLS in transit), role-based access control (RBAC), audit trails, multi-factor authentication (MFA), and regular security audits or third-party penetration tests.
Some firms also employ advanced techniques like data watermarking/fingerprinting to trace data leakage and even data masking to shield sensitive data during processing.
Outsource creative work:
Many entrepreneurs believe they can handle their own designs, but few have mastered the necessary skills for high-quality results. To achieve better outcomes, it is advisable to outsource creative work to experts in the field.
By outsourcing design requirements—such as logos, business cards, letterheads, advertising banners, and website images—you can significantly improve the quality of your creative output.
In fact, over 65% of small businesses globally outsource at least one design project quarterly, with many saving up to 40% on design costs compared to employing full-time staff.
Notably, logo & brand identity design comprise about 30% of all outsourced creative work; web/app design accounts for 25%, and digital ad creatives 15%.
This not only enhances your brand image but also allows you to focus on your core business activities while professionals manage your design needs. In recent research, 65% of organisations told Deloitte’s Global Outsourcing Survey that outsourcing “helps them focus on core functions,” while 63 % cited cost-cutting as a key upside.
You also gain access to specialized tools and global talent without paying for licenses or maintaining staff. Professional teams typically have the latest software (e.g., Adobe Suite, 3D tools) and stay updated with industry trends.
Outsource web development:
Even though web development encompasses both creative and technical elements, it is often outsourced by companies seeking efficiency and expertise. Many foreign teams excel in web development, offering a range of services from coding to implementing ready-made solutions that can be customized to meet specific business needs.
As of 2025, the global outsourcing industry is valued at $300 billion, with web development services projected to grow from $74.7 billion in 2025 to $104 billion by 2030.
Moreover, 92% of organizations now outsource IT functions, including web development; among the world’s 2,000 largest companies.
However, not every web development project should be outsourced. This approach generally works best for routine assignments with tight deadlines.
For example, Outsourcing can deliver significant cost savings, often in the 25 % to 60 % range compared to in-house development.
But if your project requires significant innovation or a high level of customization, having an on-site development team can provide advantages, as they can oversee the entire process and ensure alignment with your overall business objectives.
You should outsource cybersecurity:
Most times, we hear about big companies being targeted by cyber attacks but little do we know that small businesses are also at risk. Smaller enterprises may be targeted since they tend to keep valuable information such as passwords and credit card numbers in less secure places, making them easy prey for hackers.
In 2025, 61% of small businesses reported being the target of at least one cyberattack in the past 12 months.
A successful data breach now costs a small business an average of $164,000, with additional revenue losses of approximately $29,000 due to downtime. Notably, legal fees and compliance penalties average $18,000, and reputation repair costs average $7,500 per incident.
At this point, hiring the services of a cybersecurity company can save you money on legal fees. In addition, even a minor breach can now prove costly under tightening data protection regulations, thus negatively affecting your reputation.
Similar to how one wouldn’t use a lock built by himself for his home’s security, using DIY solutions for your business’s online safety should be avoided too.
Finding or even affording experienced specialists can sometimes pose a difficult task; hence, outsourcing this responsibility to a professional cybersecurity team is worth the investment.
Outsourcing cybersecurity brings access to expertise, tools, and preparedness that small teams often lack.
For example, Cybersecurity as a Service (CSaaS) is expanding rapidly; the global CSaaS market grew to $161 billion in 2024 and is projected to hit $179 billion in 2025, growing at a CAGR of 11.2% through 2029
Outsourced teams can help you stay ahead of emerging threats like AI-enhanced phishing, ransomware, and deepfake scams, all rising in prevalence.
It’s better to outsource video editing:
It’s a no-brainer, high-quality video content is crucial for effective marketing and brand communication.
While creating videos in-house may seem cost-effective, it often falls short in representing your brand effectively. The quality of your videos directly influences customer perception and can determine the success of your marketing efforts.
For example, promotional videos, tutorials, and customer testimonials all require expert editing to engage viewers and convey your message clearly.
In 2025, 72% of consumers prefer engaging with videos that look professional and polished, underscoring the importance of quality in content production and its impact on brand trust.
Outsourcing video editing to professionals offers numerous benefits. Expert editors ensure that your content is polished and meets industry standards, enhancing your brand’s image. Additionally, this approach saves time and resources, allowing you to focus on your core business activities without sacrificing the quality of your marketing materials.
Professional vendors deliver videos faster through streamlined workflows, ensuring tight marketing deadlines are met.
One case study even achieved a 25% reduction in editing costs, accelerating content delivery for a media agency.
By outsourcing video editing, businesses can eliminate expenses like software ($200–600/year), hardware ($1,500–3,500), and maintenance ($500–1,000/year), saving thousands annually.
Without your company having to make direct investments, outsourced teams make use of first-rate editing software, cloud collaboration platforms, AI-driven tools, and support for formats like 4K, vertical (9:16), VR/AR, and motion graphics.
By leveraging external expertise in video editing, you can produce compelling content that captures attention, engages your audience, and ultimately drives business growth.
Most companies outsource accounting services:
Other than IT services, accounting services is another mostly outsourced business process.
When we think of accounting, we most likely come up with payroll. In case you have a small number of employees, it is quite manageable to handle the payroll in-house.
It can, however, become time-consuming if your company has more than 20 employees and has to deal with monthly payrolls.
That is not all that can be distressing; keeping track of taxes, bonuses, and other deductions, as well as employee joining and exit forms plus leave days, can become overwhelming.
The market size for Financial & Accounting Business Process Outsourcing (F&A BPO) was $60.31 billion globally in 2023 and is expected to grow at a CAGR(Compound Annual Growth Rate)of 9.1%, reaching $110.74 billion by 2030.
You may choose to outsource accounting services so as to take the financial burden off your shoulders and concentrate on growing your business further. Moreover, you will get additional savings and tax benefits from hiring an accountant.
Outsource skills you don’t have:
Generally speaking, most businessmen start their businesses on the basis of how good they are in certain fields and the things they love. To illustrate, Bill Gates initiated Microsoft because he had a passion for information technology.
You’ll likely begin in an industry you’re familiar with or know a lot about. However, as you grow your business, you’ll need to handle many different tasks, like sales and marketing, which might not be your strengths.
It’s common for entrepreneurs to face this challenge. Instead of struggling with areas you’re not skilled in, it’s smart to outsource all those tasks and scale faster.