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OUTSOURCING INDUSTRY
Outsourcing industry can be segmented in two different ways. The two ways are type 1 and type 2. Both the types are illustrated and discussed respectively
TYPE 1
Table 1
Figure 1
The TYPE 1 category is segmented based on the nature of work. As the figure 1 shows, the four main segments of outsourcing in type 1 are Professional, IT, manufacturing and project. As shown in the table 1, in the recent years there is a increase in spending for oursourcing in all segments except for IT. This is primarily because of increase in cloud based operation. Also, the overall oursourcing revenue scaled over the past four years is comparitively less than the past. This is clearly evident from the global outsourcing market size of $104.6 billion in 2014 to $85.6 billion in 2018. The factors that contribute to the decline are increase in in-house operation and political intervention.
TYPE 2
Figure 2
Figure 3
The TYPE 2 category is segmented based on the geographical location. As the figure 2 shows, the three segments of type 2 category are onshore, nearshore and offshore. As the name suggests the three segments signifies the location of outsourcing based on the distances. As shown in the figure 3, an onshore outsourcing will prove to be efficient but does not make economic sense.