The Most Outsourced Services in 2024: A Ranked Overview with Real-Life Examples
For many firms in 2024, outsourcing will remain a strategic necessity as it allows them to increase productivity, cut expenses, and take advantage of specialist knowledge. Based on current statistics, this guide lists the most popular outsourced services in order of popularity and illustrates each service's use with real-world examples including players from the hospitality, accounting, and restaurant industries.
Percentage of Companies Outsourcing Business Tasks (%)
1. Legal Services
(64% of Outsourcing)
Contract Management, Compliance, and Regulatory Affairs
1.1 Contract Management
Contract management is a key area of outsourcing within legal services. Wyndham Hotels & Resorts utilizes external legal experts to manage contracts related to franchising and operational agreements, ensuring compliance and reducing legal risks.
1.2 Compliance and Regulatory Affairs
Compliance and regulatory affairs are frequently outsourced to navigate complex legal requirements. The Walt Disney Company relies on external consultants to handle compliance with industry regulations across its diverse operations, ensuring adherence to legal standards and avoiding potential fines.
2. Tax Services (61% of Outsourcing)
Tax Preparation, Filing, and Advisory Services
2.1 Tax Preparation and Filing
Tax preparation and filing services are commonly outsourced due to the complexity of tax regulations. Deloitte provides tax services to numerous companies, including restaurants like The Cheesecake Factory, ensuring timely and accurate tax submissions and optimizing tax strategies.
2.2 Tax Advisory Services
Tax advisory services are outsourced to gain expert insights into tax planning and compliance. KPMG offers these services to various businesses, including those in hospitality, helping them navigate intricate tax laws and maximize tax benefits.
3. Human Resources (57% of Outsourcing)
Recruitment, Payroll and Benefits Administration, and Training.
3.1 Recruitment Process Outsourcing (RPO)
Recruitment Process Outsourcing (RPO) helps streamline hiring processes. Marriott International uses RPO services to manage recruitment, including job postings and candidate screening, to attract top talent globally.
3.2 Payroll and Benefits Administration
Payroll and benefits administration are outsourced to manage complex HR functions. Accenture provides these services to companies in the restaurant industry, ensuring accurate payroll processing and benefits management.
3.3 Employee Training and Development
Employee training and development programs are outsourced to provide specialized training resources. Hilton Hotels leverages external training providers to enhance staff skills and support professional growth across its global network.
4. Finance and Accounting (51% of Outsourcing)
Bookkeeping, Financial Analysis and Planning
4.1 Bookkeeping
Bookkeeping is a critical outsourced service for maintaining accurate financial records. Over Easy Office offers outsourced bookkeeping services to various businesses, including those in hospitality, ensuring compliance with accounting standards and accurate record-keeping.
4.2 Financial Analysis and Planning
Financial analysis and planning services are outsourced to gain expert insights. PricewaterhouseCoopers (PwC) assists organizations in the restaurant industry with budgeting, forecasting, and financial reporting, helping them make informed decisions.
Outsourcing accounting can yield significant benefits. Learn more in Top 10 Outsourced Accounting Firms for the Restaurant Industry.
5. Manufacturing and Supply Chain
(50% of Outsourcing)
Supply Chain Management and Procurement.
5.1 Supply Chain Management
Supply chain management is a key area where outsourcing is common. General Electric partners with external suppliers and logistics providers to streamline its supply chain processes, ensuring efficiency and cost-effectiveness.
5.2 Procurement Services
Procurement services, including sourcing and purchasing, are outsourced to leverage specialized expertise. Apple Inc. collaborates with external procurement firms to manage its global supply chain, optimizing procurement strategies and reducing costs.
6. Procurement (48% of Outsourcing)
Strategic sourcing and Vendor Management.
6.1 Strategic Sourcing
Strategic sourcing is outsourced to enhance procurement efficiency and reduce costs. IBM partners with third-party sourcing experts to manage its procurement needs, ensuring competitive pricing and effective supplier management.
6.2 Vendor Management
Vendor management services are frequently outsourced to streamline supplier relationships. Microsoft uses external vendors to handle vendor management, ensuring timely delivery and compliance with contractual obligations.
7. Engineering and Product Development (45% of Outsourcing)
Product Design and Development and Engineering Services.
7.1 Product Design and Development
Product design and development services are outsourced to drive innovation and leverage specialized knowledge. Nestlé collaborates with external R&D firms to develop and enhance food products, utilizing expertise from outside the organization.
7.2 Engineering Services
Engineering services, including software and systems engineering, are outsourced to access cutting-edge technologies. Domino's Pizza partners with technology firms to develop advanced pizza delivery tracking systems and improve digital ordering platforms.
8. Sales (35% of Outsourcing)
Sales Support and Development
8.1 Sales Support
Sales support, including lead generation and follow-ups, is a critical outsourced function. Outback Steakhouse utilizes outsourced sales support to drive growth and generate leads for new locations, allowing the internal team to focus on core sales activities.
8.2 Sales Development Representatives (SDRs)
Sales Development Representatives (SDRs) are outsourced to manage lead qualification and initial outreach. Red Lobster partners with outsourced SDRs to handle initial contact with potential franchisees and customers, optimizing the sales process and improving lead conversion rates.
Conclusion
Outsourcing continues to be a crucial strategy for businesses looking to enhance operational efficiency, reduce costs, and access specialized skills. As businesses navigate the complexities of legal, tax, and HR functions, outsourcing offers a way to manage these areas more effectively and with greater expertise.
For comprehensive back-office solutions, Over Easy Office provides expert outsourcing services across various domains, including customer service, sales, accounting, and bookkeeping. By partnering with Over Easy Office, businesses can streamline their operations, improve service quality, and focus on achieving their core objectives, all while benefiting from specialized support in critical areas. Contact us today to learn how we can help optimize your business operations and drive your success.