Have you ever questioned why IT outsourcing has become so popular in recent times? Well, in the past, big businesses were able to take care of all of their IT requirements on their own. But as technology has developed and grown more complicated, it is challenging for a company to handle everything alone.
The IT industry has also become more globalized now. Some European-made applications can be employed primarily in the United States (US). Due to this, businesses are compelled to provide global as well as local customer service.
Herein lies the role of outsourcing. To maintain the competitive edge required in today's market, outsourcing enables you to concentrate on your core strengths while delegating other responsibilities to a third party.
Outsourcing is not an exception to this rule, though; it is constantly changing and introducing new procedures.
Let's dive into the top ten interesting outsourcing trends which will surely be carried out in 2023.
10 Interesting Outsourcing Trends to Look Out for in 2023
As a business leader, keeping up with the latest trends in outsourcing will help you navigate the industry and adjust to the post-pandemic world's new normal.
2022 outsourcing tendencies mirror the adjustments to the market that have occurred in response to the pandemic. According to this, businesses should seek out providers of high-quality services, strive for high levels of flexibility, and use advanced technology when outsourcing in 2023.
The 10 most interesting outsourcing trends to look out for in 2023 are covered in this article.
1. Making Quality Priority
Nowadays, businesses place a strong emphasis on offering their clients high-quality services. They will require sophisticated technology and skilled labor for this, both of which can be costly in most regions.
This has led to an increase in the use of outsourcing in many fields, particularly software development, human resources, business, legal, etc.
Outsourcing also allows businesses to provide clients with specialized solutions. An outsourcing firm is more likely than an internal team to have the time, knowledge, and resources required to customize solutions.
2. Ensuring Consistency
Prior to the pandemic, businesses were inclined towards outsourcing with different vendors. But as of recent times, the majority prefer a strategic alliance with one or fewer vendors, according to a recent study by the University of Cambridge.
Companies now believe that forming strategic partnerships with a smaller number of outsourcing companies can guarantee cost savings and business consistency as changes in service providers regularly can affect business consistency.
Collaborating with a similar team from an outsourcing firm for a long time increases the likelihood that the two parties will form a solid working relationship. Reaching goals is easier when there is a strong bond between the parties involved.
A longer outsourcing contract is another way for businesses to guarantee continuity with an outsourcing partner. Because you'll be working with a reliable outsourcing partner, longer contracts can ensure that services are provided even during uncertain times.
3. Flexibility and Adaptability
Lockdowns brought on by the Covid pandemic were frustrating and frightening. Many nations struggled to recover from the recent economic shock. In response to these circumstances, business owners and service providers are becoming more flexible about work, according to Deloitte's 2021 Global Outsourcing Survey.
An outsourcing company will also need to meet the growing demands of businesses for agility:
Accept if a project is abruptly suspended or paused by the company.
If the outsourcing company faces any unexpected obstacles, it should make sure the work is finished before the deadline.
Increase cooperative projects.
4. Hiring Talented Individuals
A 2022 ManpowerGroup survey found that 75% of employers have trouble finding qualified candidates in the US. The most significant issue is the lack of talent with expertise in emerging technologies. This shortage is the biggest obstacle to the adoption of contemporary technology used in industries like networks and security.
Additionally, because it takes a lot of time to upskill internal teams, businesses are outsourcing their needs to a vendor in a prime outsourcing facility. A business can quickly access the knowledge it lacks internally by outsourcing to a qualified vendor.
5. Adapting Modern Technology
Companies that stay on top of technological advances can automate procedures, boost productivity, and streamline operations. However, modern technology includes automation, and software development, which are constantly evolving. Frequent technology updates can be difficult, so businesses are turning to service providers for help. They are specialists in their areas of expertise. They are therefore more likely than an internal team to keep up with technological advancements.
The few modern technologies outsourcing companies can utilize include RPA (Robotic Process Automation) Solutions, Automation, and Cloud Computing.
6. Enhanced Security
Intruders may have multiple access points to internal data as a result of digital transformation. According to Forbes, 82% of businesses experienced cyber-attacks in 2022. However, overseeing an internal security team could be challenging.
Because of this, businesses are employing managed service providers (MSPs). A third-party professional known as an MSP oversees a specialized operation, such as data security.
Due to the increased likelihood that MSPs will have cybersecurity specialists and modern solutions. Therefore, businesses are turning over their cybersecurity to them. According to Statista, there was a $152.02 billion market for MSPs in 2020, and that market is expected to reach $274 billion by 2026.
7. Better Customer Experience and Satisfaction
The key differentiator for brands in 2023 will remain the customer experience, which will give companies an advantage over their rivals. Businesses may need to make greater investments in customer service and social media coverage to deliver a better user experience.
Companies can benefit from a customer experience focus by:
Facilitating customer acquisition
Boost client satisfaction.
Boost brand loyalty and customer relationships.
However, it can be challenging to control the unpredictable nature of customer call volumes. For proper operation, businesses may need to manage the workforce and scale up and down quickly. The customer experience is significantly improved, and operational costs are significantly reduced when services like customer support are outsourced.
8. Cost Reduction
Prior to the pandemic, businesses were shifting their focus from cost-cutting to putting a higher priority on quality and scalability, but this changed as a result of the pandemic.
According to Deloitte's Global Survey 2021, 88% of the surveyed companies stated that their primary outsourcing goal was now cost reduction.
Although clients wanted flexibility, scalability, and technology support, the majority of surveyed outsourcing companies claimed that the main decisive factor was the decrease in operational costs brought on by outsourcing services.
While the global economy bounces back from the pandemic and economic crises in 2023, this trend may persist.
One of the most encouraging developments in the field of outsourcing is the growing emphasis placed on openness, which is fundamental to sustaining a healthy and dynamic competitive market. Maintaining confidence between suppliers and BPO firms calls for a high degree of open communication.
Better investment opportunities and business innovation are made possible through transparent strategic partnerships, wherein stakeholders have greater ease of access to relevant data. Small and medium-sized businesses have pushed BPO companies to be more transparent while making a contract.
10. Globalized Teams
One of the most in-demand outsourcing trends is the creation of global teams because it is less difficult and more cost-effective than traditional methods. Outsourcing non-essential business functions require companies to be flexible and responsive to market changes. It is common knowledge that the functional expertise and support provided by BPO companies and other industries are enhanced by their geographically dispersed workforce. The ability to work with talents from all over the world and benefit from their diverse cultural backgrounds and sound skill sets is facilitated by global teams.
Trends in global outsourcing are expected to present both opportunities and difficulties in 2023. Overall, outsourcing firms are getting more aggressive in the marketplace, and they're placing more emphasis on the kind of strategic partnership that has proven to yield the most fruitful outcomes.
BPO firms can gain more in-depth insights into managing resources and keeping up with the times by keeping tabs on the latest outsourcing trends and developments. Zag Global could be an excellent outsourcing partner for you. Zag Global’s mission is to provide clients with cost-effective, cost-efficient outsourcing services tailored to their specific business needs.