Heading into 2023, the landscape of outsourcing is likely to change in various aspects.
As a result, now’s the perfect time to familiarize yourself with the upcoming lay of the land, so you can outsource work in the most cost-effective way and still source the best talent from around the world.
In this guide, we’ll explore the top outsourcing services and trends you should keep an eye out for in 2023.
Top 3 Outsourcing Services for 2023
In 2023, there will likely be a surge in demand for several outsourcing services, including the following three:
There’s never been a shortage of demand for IT outsourcing services, as companies look to delegate the management of their IT infrastructure and core internet processes to top tech talent.
And the trend shows no signs of slowing down, as the data from Statista shows: there will be a steep incline in revenue generated from IT outsourcing from 2023 to 2027.
Whether it’s mobile app development or software development, the IT outsourcing industry has expanded over time and will continue to do so at an exponential rate in 2023.
Business process outsourcing (BPO) is another core outsourcing service that’s due to continue in popularity going into 2023.
BPO outsourcing companies can take control of your basic business processes - plugging gaps you may have in technical expertise and offering a low-cost solution for everything from HR to admin.
In a BPO forecast from Statista, we can expect to see a rapid climb over the following years in BPO revenue.
Blockchain is a relatively recent outsourcing service that’s set to grow in demand in 2023.
With the steadily growing interest in cryptocurrency, it makes sense that many companies are keen to outsource the blockchain development process to those with the know-how.
From 2022 to 2030, the blockchain global market size is expected to grow at a compound annual growth rate (CAGR) of 85.9%.
Outsourcing Trends for 2023
Now you know what some of the most in-demand outsourcing services will be in 2023, let’s take a look at what the trends will be.
1. Nearshore Over Farshore
When making the decision to outsource services, you have the option to hire nearshore or farshore.
With the former, you can find companies based near yours to reduce the risk of encountering a strong culture clash and find workers sharing a similar time zone. With the latter, you can find more affordable options and source talent that might be in short supply in your part of the world.
Perhaps understandably, in the wake of the COVID-19 pandemic, the tendency in 2023 will be to prefer nearshore over farshore outsourcing.
Because when you hire nearshore, you can avoid the following issues:
- Extreme time zone differences that don’t line up with your current work arrangements
- Complicated hiring compliance laws
- Cultural differences that could impact your work culture and negatively impact collaboration
2. Sourcing Top Specialist Talent
In 2023, there’s a strong chance that attention for outsourcing services will be turned towards locating niche talent - the people who can do jobs that few others can.
When specialist talent is in short supply in your area, your options are limited. Yet when the global talent pool opens up to you, it makes sense to explore the abundance of niche talent located around the world.
Why the need for more specialist talent?
Because as technology continues to advance, with AI taking great strides and the world taking notice in the latter stages of 2022, there’s likely to be an uptick in tech-focused outsourcing. With the right working from home monitoring software you can hire talented overseas workers and get concrete data regarding their productivity levels.
3. Maintaining Business Continuity
Business continuity is all about maintaining relationships with the same companies, suppliers, and service providers. The advantage of doing this is knowing exactly what to expect, and minimizing the amount of change within your organization.
When you constantly switch up your business working arrangements, you risk losing productivity and make it much harder to predict productivity and other metrics you need to succeed.
In 2023, many businesses will focus their efforts on cultivating strong working relationships with a few outsourcing companies in favor of the constant churn and unpredictability of juggling new partnerships.
Especially in light of the turmoil of the past few years in business, with pandemics and growing talks of recession, it’s worth having business partners you can trust in the long term.
4. The Need for Advanced Technology
As technology continues to advance at breakneck speed, it’s likely that in 2023 there’ll be a trend toward less traditional outsourcing services.
For example, machine learning and automation could play a huge role in the coming years as companies look to grow smarter and more efficient with the assistance of technology. Cloud computing is another area many companies will look to for managing the heavy burden of storing and accessing online data and resources.
5. A Focus on Flexibility
Flexibility is a trait that a lot of companies are already prioritizing - more and more businesses place heavy emphasis on agile processes and the need to be adaptable to navigate and overcome ever-changing obstacles.
2023 will mark a further honing in on this focus on flexibility, as many businesses are now starting to consider alternate work models such as the 4-day workweek.
As a result, it could be that there are gaps to fill, services to maintain, and customers to be served when teams spend more time OOO. It could also be the case that companies look to mitigate against disaster by outsourcing and refining their collaboration infrastructure and general workflows.
Surveillance software can be a useful aid for building a flexibility-first work dynamic, as you can onboard new hires with different hours while tracking productivity and output.
How Insightful Supports Outsourcing
One of the biggest concerns when it comes to outsourcing is what exactly you’re getting for your investment.
What if you pour resources into outsourcing yet fail to see a positive ROI?
To prevent this from happening, you can use an employee monitoring tool like Insightful for employee performance monitoring. Through automatic time tracking and detailed data reports, you can monitor remote employees from afar.
Using a team tracker app can help you build a robust workforce optimization process.
What is workforce optimization?
It’s the process of carrying out incremental changes and making improvements so that your workforce has what it needs to thrive.
You can use the work hour tracking app to take regular screenshots, track app usage, and generate productivity reports to make sure that your outsourced team puts in the same amount of time to their work as your in-house team.