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Outsourcing industry outlook

Outsourcing is an undeniable trend of the modern economy. For business owners keeping abreast of the current outsourcing trends can help adapt them to benefit their business. In this article we have collected top outsourcing industry statistics and trends to watch for 2023.


Main figures 

According to Deloitte, total spending on outsourcing is forecast to reach $731 billion in 2023. 

  • IT outsourcing spending is projected to reach $519 billion in 2023. 

  • Business process outsourcing spending is forecast at $212 billion in 2023 and $525 billion by 2030 (Grandview Research). Business processes outsourcing is projected to grow by over 9% per year between 2022 and 2030. 

92% companies from Forbes Global 2000 ranking use IT outsourcing and 59% - business process outsourcing, states the study by ISG Research.


Perceived outsourcing benefits  

“Enabling focus on core functions” is the most common perceived benefit among companies that use outsourcing. In Deloitte’s Global Outsourcing Survey, respondents were asked “How does your organization perceive the benefits of outsourcing?” 

  • 65% said outsourcing helps them focus on core functions. 

  • 63% mentioned cost-cutting as a key benefit of outsourcing. 


Outsourcing and small businesses 

37% of small businesses outsource at least one business process and more than a half of them plan to outsource more in the future. 

Among top reasons for outsourcing for small businesses are cost-efficiency (24%) and access to skills and expertise they cannot afford in-house (18%). 

Smaller companies most commonly seek support for accounting (37%), IT services (37%), and digital marketing (34%). (Clutch). 

Outsourcing adoption is rising among startups and small businesses, as it allows them to access the best talent and tools at reasonable pricing, as well as to get rid of repetitive tasks and focus on the core.  

Small businesses name strong problem-solving skills as the most important factor when choosing an outsourced team. 20% of them use referrals to find a service provider. 

Market trends driving outsourcing adoption 

Aim for the quality of service 

Providing high-quality products and services to customers has become an imperative for business. To do so they need skilled employees and advanced technology. As a result companies tend to rely on external providers specializing in specific areas, like software development, HR administration, accounting & payroll, legal.   


Cybersecurity threats   

Data is the new oil. While digital transformation contributes to efficiency boost, it also can open ways for intruders to access internal company data. A Forbes article reveals that 82% of companies faced cyberattacks in 2022. Businesses, especially smaller ones, increasingly outsource their cybersecurity to managed security service providers. 


Importance of customer experience

Customer experience is the key brand differentiator in 2022 and will continue to give businesses a competitive edge in the future. To provide better customer experience businesses are investing into customer support with the option of quick scaling in case the amount of customer requests goes up sharply. This drives demand for call center outsourcing services. According to the Global Call Center Outsourcing Market’s 2022-2026 report, the call center outsourcing sector will grow by $21.72 billion.   


Need for niche talents  

Shortage of talents specialized in new technology is according to Gartner the most significant barrier to the adoption of 64% of modern technology in network and security. This may be not so striking for back-office outsourcing services, but nevermind up-skilling in-house teams is time and resource consuming, so companies choose outsourcing to a specialized provider.   


Changes in relations between service providers and clients  

Need for workflow transparency 

Companies are shifting from the model of fully transferring the responsibility for the outsourced task on the service provider. They adopt a transparent and frequent communication approach that helps avoid multiple misunderstandings. Some service providers already use an outsourcing contract like a service level agreement, so their clients have a clearer idea of outsourced work. 


Long-term partnerships for business continuity 

Businesses are switching from multiple vendors outsourcing to strategic partnerships with one or two outsourcing services providers, as changes can disrupt business continuity. Long-term relationship increases commitment and trust, saves time for onboarding a new outsourcing partner and finding efficient communication models. 


Outsourcing industry trends are carefully analyzed and summarized for you by the ReStaffy editorial team. ReStaffy is an online platform where companies can find an outsourcing partner for their essential business tasks and service providers can offer their B2B services.
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