What the Outsourcing Industry Can Expect in 2023
Outsourcing offers companies a competitive edge with reduced operating costs, time savings, and staff flexibility. 2022 has been a transformational year for businesses worldwide with hybrid working systems, offshoring operations, and an aim to get industries back on the map.
This year the outsourcing trends reflected pandemic workflows, however, as we enter the new year, outsourcing will evolve, and businesses must keep abreast with critical changes to ensure maximum optimization.
Research states that by the end of 2022, businesses will spend over $700 billion annually on outsourcing, fueling market growth. So, as businesses welcome 2023, here are some key outsourcing trends to watch out for when choosing a provider.
Flexibility and Adaptability
As businesses continue to recover from the economic shock of COVID-19 lockdowns, companies are shifting their focus on flexibility in workflows. In this case, outsourcing providers may be selected based on their ability to fulfil a company’s agility demands.
Outsourcing companies must ensure work is completed before deadlines and offer collaborative opportunities between them and their clients.
Quality of Work
Emphasis on providing high-quality work remains as businesses enter 2023 with a need for adaptability to newer software. Research from Commit states that between 2022 and 2023, software development outsourcing will increase by 70%.
To ensure the quality of work is precise and excellent, outsourcing providers must acquire skilled employees and advanced technologies to aid businesses.
Large enterprises often collaborate with multiple outsourcing providers to ensure streamlined operations; however, in 2023, that will change. Instead, more businesses are focusing on building long-lasting, strategic partnerships with a single outsourcing provider to look after operations.
This change comes with the need for minimizing business disruptions and working on a single channel of communication with the outsourcing provider.
The demand for better compliance and security controls will grow in 2023, with digital transformation paving the way for data breaches and cyber-attacks. As a result, businesses are outsourcing cybersecurity to external providers that offer expert advice and solutions based on their needs. According to Statista, the need for outsourced cybersecurity providers will grow to $274 billion by 2026.
Outsourcing Growth for Smaller Companies
Small businesses and start-ups are known to outsource their operations, allowing the company to grow quickly. This trend will continue in 2023, with many smaller enterprises accessing more expansive talent pools from outsourcing providers.
With the new year, more small businesses will outsource repetitive operations to an outsourcing provider to ensure productivity and efficiency.
Demand for New Technology
As technology evolves, businesses looking to outsource their operations in 2023 will look at providers skilled in modern technology to optimize results.
With the rise of software development, IoT, and digital transformation, outsourcing providers must be equipped with Robotic Process Automation, Cloud Computing, AI, and machine learning systems.
Improved Customer Experience
For businesses, an important goal when outsourcing operations is ensuring the customer experience is excellent, and customer retention is continuous. Therefore, outsourcing providers must offer companies optimal customer experience solutions like customer acquisition, increased customer satisfaction, and stronger customer relationships.
Outsourcing customer experience services will remain a big trend in 2023, allowing businesses to build better relationships and drive better performance outcomes while reducing operational costs.
In 2023, it’s expected that the outsourcing industry will evolve to comply with growing business demands. At Fair Trade Outsourcing, we are committed to helping businesses in the U.S. with all back-office services and customer engagement needs across several industries. With a skilled team in the Philippines, Mexico, and Ghana, we deliver quality outsourcing services for your business. Contact us today to learn more.