Outsourcing in Canada

Outsourcing in Canada: There are many option for you to go with as more than 100 countries are really good in outsourcing industry. But Canada is just different and better in many ways.

Have you just heard about outsourcing and decided to give it a try after understanding its benefits? In that case, there will be nothing better than an outsourcing market that’s already established and multi-cultured. There are many options (countries) for you to go with as more than 100 countries are really good in outsourcing industry. But Canada is just different and better in many ways.

Are you doubting the potential of Canadian workforce?

Read this article thoroughly as in this article, we’ll be discussing the whole industry of outsourcing in Canada. Moreover, we’ll go in-depth and see if the famous industries (like AI, accounting, marketing, IT, and HR) are good enough for outsourcing in Canada.

So, let’s start with the overview of the market:

A Complete Overview of Outsourcing in Canada

Globally, outsourcing industry is thriving and skyrocketing towards success. In 2019, global outsourcing market revenue was almost 100 Billion USD mostly composed of BPO (business process outsourcing) and ITO (information technology outsourcing).

Hence, there are hundreds of options for you to choose from but we’ll always say that Canada would be the most suitable place to start your outsourcing journey as a company owner. Canada is recommended due to several reasons and the biggest one is that Canada has a quite composed outsourcing industry.

You can understand this by the fact that Business Process Outsourcing market revenue of Canada is projected to reach 7.74 Billion USD by the end of the year 2023. It means approximately Canada has almost 8% of the whole world’s BPO market revenue which shows how established the market is in Canada.

Prominent Reasons Why Canada is Famous as an Outsourcing Nation

Canadian people are well-educated and its government is always welcoming towards foreign investments and businesses. You can opt for Canada for several outsourcing services like:

  • Human Resource
  • Chat Support
  • Remote Call Center
  • IT services like web development
  • Accounting
  • Healthcare
  • And several freelance services like coding.

It shows how involved Canada is in the industry of outsourcing as a service-providing nation. But why?

A country that’s super stable and has so many opportunities for its people doesn’t really need to work for people outside the country. Right?

But due to these two main reasons, Canadian outsourcing industry is getting more famous and bigger every single day:


The companies of America are the biggest reason why Canada had to establish a proper industry and market in outsourcing. Yes, the influence of neighboring countries can be this big. Well, they were right when they used to say, “Necessity is the mother of invention.”

Nearshoring is what took Canada to these heights but what is nearshoring?

It’s actually a type of outsourcing in which a company outsources its department or just one specific task to anyone in its neighboring countries. For example, if a Mexican company outsources its work to the US, it’s nearshoring.

Nearshoring is quite famous among the US and the UK where companies of the US outsource their tasks to Canada and UK-based businesses opt for Ireland. Usually companies go for outsourcing in countries that are far away from them in search of better rates and high-quality work.

But US-based businesses got both of these things in Canada so they started promoting it in Canada to get a bunch of benefits.

Multicultural environment

Canada is usually referred to as a country of immigrants and it’s completely true because more than 500 thousand immigrants move to Canada annually on average. Canada is filled with people from countries like India, Pakistan, and even Scotland.

There are some towns in Canada that don’t even look like Canada because of immense population of immigrants. A hard-to-swallow truth is that only 20% of people living in Canada are actually Canadians or natives.

This gives you an opportunity to work with international workforce that can bring international vibes and culture to your company that will help you win in global market relatively easily.

After discussing nearshoring and the multicultural environment of Canada (thoroughly), it’s time to dig deeper and talk about what AI, accounting, HR, marketing, and IT industries of Canada have got for you.

IT Outsourcing in Canada

IT being one of the most complicated departments of any region, is extremely difficult to handle in outsourcing. But Canadians can be trusted in every manner.

Outsourcing IT

Benefits of IT Outsourcing in Canada

Successful Industry

IT outsourcing industry is probably the biggest one in Canada. Just in 2023, IT Outsourcing market revenue is projected to reach 10.39 Billion USD which is amazing to think about because only a few countries are outsourcing their work to Canada these days. And this industry is growing swiftly at an annual growth rate (CAGR 2023-2028) of 10.75%. If it keeps growing this fast, it might reach the revenue of 17 Billion USD by 2028.

Huge number of field experts

Due to huge interest of people and government of Canada in information technology, it’s extremely easy to find IT experts in specific niches such as web development.

HR Outsourcing in Canada

HR is the most cost-saving department of any company only if you do stuff related to it with mind.

Outsourcing a complete HR department is proven to be the best decision a company can make in 21st century.

Outsourcing HR

Benefits of HR Outsourcing in Canada

Language Benefit

English is the main language of business these days and we all know that Canada’s official language is also English. More than 75% of Canadian population is more than fluent in both spoken and written English. Moreover, no less than half of Canadian population can speak French fluently.

It’s always better to run a smooth HR outsourcing journey if your HR manager or consultant speaks the same language as your employees and you already know the reason behind that. Right?

Innovative Techniques

These days Canadian HR experts are coming up with new and innovative techniques to save more money for your company. But they usually ask for a bit extra money for those techniques.

Accounting Outsourcing in Canada

Accounting and finance outsourcing includes tasks like payroll management and tax management and these kind of tasks includes confidential information or data related to the company.

So, you must do proper homework before outsourcing any accounting task.

Outsourcing Accounting

Benefits of Accounting Outsourcing in Canada

Government Laws and Regulations

Government of Canada noticed that recently companies (especially Americans) have been interested in bringing money to their country through outsourcing. So, they created different departments and organizations whose responsibility was just to take care of your valuable stuff using strict laws and regulations.

Data Security

We can’t take guarantee of Canadian individuals but the government and outsourcing firms of Canada take security so seriously that it’s (almost) impossible that you work with them and your personal and professional information get leaked or misused. But if you still have any doubts, it’s always better to learn some basic rules to not get trapped in any scam.

AI Outsourcing in Canada

AI is a quite expensive department but it’s so important these days that you can’t win against your competitors without focusing on AI.

It’s always better to outsource this department completely to a country that’s extremely involved in AI development (which Canada is)

Outsourcing AI

Benefits of AI Outsourcing in Canada

Interest in AI

Both government and people of Canada have been showing good interest in AI for a long time now. Every year thousands of people enroll in AI courses and degrees to become experts in the field. And at least 25 education institutes in Canada are offering AI degrees and courses which shows that you will always get your desired AI experts in Canada quite easily.

Cost Saving

AI industry is extremely expensive as AI experts are charging quite a lot because they are in demand right now and you can’t do anything about that except switch from US to Canada. Canada’s minimum wage is 15 USD per hour which is less than the US. To ensure quality and save a good money, outsource your work to Canada.

Marketing Outsourcing in Canada

The complexities of marketing (these days) have urged businesses to go for outsourcing. Marketing outsourcing is probably the easiest thing to do for you in Canada if you belong to America.

Here’s why:

Outsourcing Marketing

Benefits of Marketing Outsourcing in Canada

Similarities with the USA

Canadian trends are almost same as American trends and that’s what matters the most in marketing these days. General and social media trends define the mentality of the targeted consumers and once you know what your target does, you have succeeded in marketing.

Knowledgeable Experts

Due to inclusion of digital world (social media and blogs) in marketing, it has become more difficult for companies to manage this department. But if you outsource your marketing work to talented Canadian individuals and firms, they know how to handle all of the stuff involved in marketing (local and new).

Laws to Understand Before Trying Canadian Outsourcing Industry

Although laws are made for your ease and your data’s safety, sometimes, they can go against you if you don’t pay enough attention to them. Hence, here are the laws that need your attention:

1.      Security Law

Canadian government respects security as much as it deserves. For that, the government issued a law named Multilateral Instrument 52-109 Certification (MI 52-109).

According to this law, CEO and CFO of every public company or sector of Canada have to justify their financial statement. Otherwise, they might get in trouble.

2.      Investment Law

Just like every other intelligent country, Canadian government also loves attracting foreign investments to the company.

Investment Canada Act (ICA) works in a way that non-Canadians have to follow some rules before starting business in Canada. There are a few complications as well in this law, so please read this yourself or at least ask your legal consultant to do this before you start outsourcing your work to Canada.

3.      Privacy Law

Personal Information Protection and Electronic Documents Act or PIPEDA is the law that will help you with privacy concerns. According to this law, every private sector or organization in Canada that collects or uses personal data has to follow some rules. Crossing a certain privacy line can get them into trouble.

4.      Outsourcing Guidelines

Canadian government is paying so much attention to its outsourcing industry that many experts have said that it might affect American market badly as Canada might surpass it in 50 years or so.

The Office of the Superintendent of Financial Institutions (OSFI) of Canada issued a paper named “Guideline B-10” that’ll make your outsourcing journey easier in Canada. So, add reading it to your task list for this week.


What are the famous charging methods used in Canadian outsourcing industry?

The Canadian industry is pretty similar to the American one. That’s why most companies and service-providing firms prefer fixed prices and hourly payments. In fixed price, price is discussed before starting work and after discussing requirements. On the other hand, in hourly payment, service providers charge per hour. Other than these two, there are a few other charging standards as well like:

  • Cost-plus
  • Resource-based Charges

Should I learn basic laws and regulations before jumping into Canada?

Yes, for sure!

Just like every other country, Canada also has some basic laws related to foreign investments and outsourcing for your and service providers’ ease that deserve your attention.

Will choosing a perfect person for outsourcing a hectic job?

Yes, it can be especially if it’s your first time!

Usually, in countries like Canada, it is easier to find suitable service providers because of the highly-composed infrastructure of industry. If you do proper and in-depth research, it becomes easier. But we generally recommend first-timers to go for outsourcing firms instead as it’s easier.


In the end, Canada is a perfect outsourcing destination for both big and small businesses. You just have to be super cautious about legalities and stuff.

Otherwise, the industry is pretty smooth and straightforward especially for US-based businesses as it is quite related to them.

Find more resources about outsourcing:

Outsourcing Human Resources

Outsourcing Marketing

Outsourcing Information Technology

Outsourcing Accounting

Outsourcing Artificial Intelligence

Asia  .  Europe  .  Africa  .  Oceania  .  North America  .  South America

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