7 hot IT outsourcing trends and 7 going cold
Cyber security will surely grab more limelight and thinkers attention in the days to come. Since, these days, many firms outsource their full work to a consultant, so definitely the former expect a higher level of data security from them. The year 2019 will see a further rise in outsourcing trends worldwide. The basis of outsourcing business is to accelerate the pace of one’s business and increase its efficiency.
Additionally, businesses can direct their internal resources away from mundane jobs and toward more important projects. This is especially helpful for smaller companies that don’t have the required expertise or personnel to carry out specific initiatives successfully. They are able to maintain their competitive advantage without having to make significant investments in recruiting full-time employees by outsourcing. 2022 was a leap for the IT outsourcing industry, with over $4.4 trillion spent on this industry, according to Gartner. Cloud computing, blockchain technology, artificial intelligence, and other similar technologies were some of the IT Outsourcing Trends in 2022.
Hint of, hopefully, a continuous positive uptrend for the rest of the year, carrying on from an equally optimistic market outlook from 2020. Assign high-level tasks requiring specialized problem-solving skills to a team of subject matter experts. Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila since 2014.
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Countries like India, China, and the Philippines are home to some of the world’s most talented and cost-effective outsourcing professionals. As more businesses outsource their information technology requirements, these countries and a few others will keep adding new talents to their teams. Surely, the market for cloud computing services will continue to grow in the next few years, and companies will increasingly turn to outsource providers for help with this.
- Thanks to technological advancement and AI, hospital outsourcing is becoming more reliable.
- Our latest Global outsourcing survey report offers a glimpse at how the latest outsourcing strategies are reshaping the industry and affecting both providers and clients.
- This trend could continue in 2023 while the world economy recovers from the pandemic and recessions.
- Explore the Global outsourcing survey to learn how forward-thinking organizations are finding ways to boost innovation and competitiveness.
- IT outsourcing is expected to become an even more critical component of business operations by 2023.
- It depends on your business requirements and the outsourcing company’s ability to meet them.
The outsourced executive helps multiple companies successfully market themselves at the fraction of the price of a full-time salaried CMO. Schaffer adds that the short contracts that come with fractional CMOs make them even more cost-effective since they don’t require lengthy tenures at a company. The biggest advantage of hiring an RPO provider is achieving top quality talent available in the market.
The outsourcing trends in 2022 reflect the changes the pandemic brought to the outsourcing market in the last couple of years. It suggests that businesses must look for providers with high-quality services, aim for high flexibility, and leverage updated technology while outsourcing in 2023. In particular, in the outsourcing industry, it has been predicted that robotic process automation will continue to grow at an explosive rate. RPA is a type of software that can execute tasks and jobs typically done by humans. RPA can answer customer queries more quickly with fewer errors than humans and can also handle repetitive tasks like invoice processing or data entry.
Trend 2: Cost Efficiency
Every enterprise must re-evaluate the capabilities that it can develop in-house with the talent it has and determine which ones to procure from service providers. By building capabilities in-house, companies can reduce the risk of their transformation projects stalling and turn to service providers in areas where they suffer from talent gaps. In fact, some companies are trying to develop capabilities in tandem with service providers—a trend that is likely to grow in the years to come. Many companies appear keen to build capabilities in-house to mitigate the risk of a transformation failing should gaps appear in service providers’ capabilities or performance. Eighty-nine percent of the companies we surveyed reported that access to digital talent is one of the biggest challenges that they will face in the next two years. Correspondingly, an almost equal proportion of companies anticipate greater dependence on IT service providers in the same period.
In other words, that’s a huge chunk of US jobs being handed over to other countries. While there is no definitive answer — keeping track of outsourcing contracts at any moment is incredibly difficult. What we do know, however, is that each year around 300,000 jobs are being sent overseas. Companies that have between 10,001 and 50,001 workers are most aware of how vital outsourcing is. 61.1% of the big companies are ready for the said investment. However, if you want to have more control over the decisions, hiring a consultant is a better option than hiring an outsourcer.
Robotic Process Automation
51% are planning to hire a full-time cybersecurity team during 2021. On the bright side, the report by HLB shows that 55% of polled companies are planning to spend more on cybersecurity in 2021. Tech companies are now practically forced to work remotely, and without proper cybersecurity expertise, they become perfect targets for cyberattacks.
Additionally, Artificial Intelligence helps a provider improve customer service. Chatbots or cloud-based IVR are examples of this revolutionary, emerging technology. According to Deloitte’s 2021 Global Outsourcing Survey, these conditions outsourcing trends are prompting businesses and service providers to become flexible concerning work. The IT sector is erupting with new advanced digital products created by two organizations coming together from different parts of the globe.
The Covid pandemic and the resulting lockdowns were chaotic and disruptive. Many countries had a hard time recovering from the short term economic shock. Business process outsourcing spending will increase to $212 billion in 2023, a 19% increase over 2019. In 2020 as well, we are witnessing new outsourcing practices like co-sourcing, outcome-based outsourcing, and others that have been discussed above. India and China’s IT export was around $150 billion in 2017 and has grown exponentially in the last two years.
Companies that are planning to accelerate transformation projects anticipate relying on service providers more heavily.
78% of businesses all over the world feel positive about their outsourcing partners. This is why we think it’s important to dig deeper into the newest data and pull out all the most important outsourcing statistics. ARDEM increases your visibility to your consumption and spending data for all of your utility bills. The expected annual growth rate in the Business Process Outsourcing sector is projected to be 6.7% by 2025.
Fractional CMOs are an ideal middle ground for startups and SMBs (small and medium-sized businesses) that don’t have the resources to hire a full-time CMO yet. They provide a limited amount of high-quality advice that can help guide a smaller company through its growth stages. The market will grow at a compound annual growth rate of 30.9% from 2022 to 2030 . Blockchain development outsourcing is the process of finding an external third-party provider to take on the development and management of your blockchain technology. Generally, companies outsource a business process such as IT services and human resource management to an external BPO company. Additionally, a Deloitte study reported that creating an outsourcing contract like an SLA can help increase transparency.
The latest statistics have indicated 63% of the outsourcing consultants expect their clients marketing to increase dramatically in 2019 and in 2020 as well. As you know, Outsourcing is a increasingly ever growing industry. An article published by Deliotte, states that 31% of IT services have been outsourced in 2017 and will continue to grow in future. Businesses must become more strategic about their choice of service providers.
As cloud technology continues to disrupt the outsourcing industry, some of the main concerns that companies have are related to information security and compliance with the law. Stats on outsourcing show that a third of all organizations are willing to accept an increase in operating costs if they get access to the cloud in return. This means that for a large number of businesses, the main motivation for this move is not to lower costs by cutting jobs, but to be more competitive and increase innovation. The AI and Machine Learning outsourcing market will expand at a compound annual growth rate of 38.1% from 2022 to 2030.
Which countries outsource the most?
Another interesting development is the imminent downfall of call centers. As more and more firms are now hiring intelligent assistants and chat bots to resolve customers’ queries. Another thing that is likely to top the thinkers mind is the data safety.
Must-Know Outsourcing Statistics for 2023
IT outsourcing is a subset of outsourcing that farms out information technology tasks. This also requires greater and more specific expertise every year. This might include cyber-security, cloud migrations, data management, and secure digital infrastructure. In addition to lower fixed costs, companies search for technological expertise to shore up business tools and back-office tasks.
The said companies employed people in various sectors, spanning from technology and call centers to human resources and manufacturing. When it comes to the United States outsourcing statistics, a large number of jobs are being sent overseas, leaving hard-working Americans without employment. Owing to the pandemic, 48% of businesses worldwide will increase RPA adoption by 5% or more. Recently, outsourcing firms have started resolving customer’s problems through the complete solution package that look into resolving all aspects of business solutions.
You can think ofPWAsas a combination of a website and a mobile application. This strategy is expected to play a bigger role this 2022, as ageographically dispersed workforceis known to offer greater support and functional expertise. 58.6% of the total U.S. workforce are remote workers due to the COVID-19 pandemic. Here are some outsourcing developments this 2022 that you should know. However, manufacturing companies outsource from 70% to 80% of their finished products. However, the state of the matter shows us that the vast majority of companies still use it, even though US citizens might disapprove of outsourcing.