The Future Of Outsourcing And How To Outsource The Right Way

Business process outsourcing spending will increase to $212 billion in 2023, a 19% increase over 2019. Clearly, during the onset of the pandemic, employees from various industries have been re-evaluating how they look at work. With economic pressures, quarantine measures, and health concerns around, workers have been shifting their priorities. The Bureau of Labor Statistics reported that in November 2021, 4.5 million U.S. employees willingly left their jobs. According to the agency, the latest figures recorded an all-time high, prompting many to dub the movement as “The Great Resignation”.

future trends of outsourcing

Plus, AI’s machine learning empowers workflow automation, allowing software apps to learn instead of blindly following commands. Software vendors who provide data science consulting services and know how to implement AI inventions in their workflow will be able to process information automatically, avoid errors, and enhance productivity. Teaming up with a European vendor is also among the current trends in IT outsourcing. As such, Europe can offer a number of advantages, for example lower costs, reduction in capital investments, expertise and efficiency.

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What’s more, they will go neck-to-neck with any firm around the globe that offers flexible or remote work options. After all, many organizations these days are willing to meet the demands of prospective employees. Globally, outsourcing spending is predicted to reach $731 billion in 2023. IT outsourcing spend could increase 22% over 2019’s numbers to reach $519 billion in 2023. The global business process outsourcing spend could increase 19% over 2019’s numbers to reach $212 billion in 2023. Grandview Research predicts that the business process outsourcing industry will reach $525 billion by 2030.

  • Generally, companies outsource a business process such as IT services and human resource management to an external BPO company.
  • However, no matter how varied they are, one thing remains true—they may shake the outsourcing industry.
  • One of the primary reasons companies opt for offshore software development firms is cost savings.
  • Of course, this kind of revenue will look attractive for companies in the outsourcing industry.

Outsourcing statistics, Eastern European countries like Ukraine, Poland, Belarus, and Romania will give them a run for the top position. If you don’t see what you need, outsourcing trends we can also recruit for other resources upon request. If you don’t require a full-time worker, there are also part-time options available for most categories.

Don’t miss out: Exciting outsourcing trends for 2023

Fintech will continue to revolutionize the finance industry, providing customers with more convenient, user-friendly services and more secure financial transactions. Businesses must follow the latest outsourcing trends to adapt fast, manage resources efficiently, and optimize productivity. In 2023, they will focus on remote services, flexible contracts, access to the latest technologies and speeding up time to market.

future trends of outsourcing

The lack of in-house engineering talent will become one of the core reasons to outsource. One survey illustrates that over 70% of technology employers in the UK expect to face a talent shortage over the next 12 months. That type of projected revenue is astronomical and is likely to serve as a seriously desirable point of aspiration for the industry. Expect more headlines about industry giants joining forces to create global behemoths throughout 2022. Burgeoning outsourcing destinations like Ireland and Egypt will be able to continue their growth in the new year, along with new players yet to establish themselves.

Focus On Artificial Intelligence Will Increase

From CEOs to local staff to consumers, global outsourcing, when done right, benefits everyone involved. With the additional support of a globally outsourced team, your team is freed to take up more tasks. On the verge ofdisruptive outsourcingand Robotic Process Automation , companies are turning to virtual outsourcing solutions.

future trends of outsourcing

Get in touch with us to discuss your goals and explore how we can assist you in realising your full potential. The pandemic has made a critical input in reshaping the expected future of the whole technology industry. Yet, there are more reasons why companies around the globe are increasing their budget spend on outsourcing . It is due to the fact that the majority of businesses embraced the inevitability of digital transformation to stay competitive and viable, hence they need to find the most effective ways to scale the team. Moreover, remote work has been one of the fast-evolving business process outsourcing trends since COVID-19 and will continue to grow in the coming years.

The Future of Global Outsourcing: Trends and Predictions for 2023 and Beyond

This benefits both partners because they are better equipped to become accustomed to each other’s working methods, styles and approaches, team members, and workflows. Well-established companies — even tech giants — like Google, IBM, Skype, WhatsApp, GitHub, Slack, GitHub, Sirius XM, Basecamp, Square, and Univision, have all outsourced software development projects to some extent. But businesses of all sizes and maturity are joining the outsourcing game. Furthermore, since COVID-19, remote work has been one of the rapidly expanding business process IT outsourcing trends, and it will only increase over the next few years. TheIT Trends Reportby Syntax highlights that 83% of leading IT organizations are considering partnering with global outsourcing services to handle any digital threats that may come along with this unexpected shift.

All these changes will ensure that our data is as safe and secure as possible. Outsourcing to India, especially IT outsourcing, is on the rise due to the abundance of qualified professionals who have the skills, resources, and methodologies it takes to create superior results. Flatworld Solutions offers a gamut of services for small, medium & large organizations. Reduce operational costs by ensuring superior service quality in medical billing & coding, pharmacy, transcription, & teleradiology, etc.

Emerging Outsourcing Trends

And due to its decentralized nature, blockchain makes it easier to derive value from data in the form of business intelligence . The 5G wireless network is expected to create a lot of opportunities for businesses that want to outsource their IT needs. With more bandwidth and faster connection speeds, this could be a game changer in terms of how quickly companies can get help when they need it. Companies are starting to outsource their cloud computing needs to third-party providers so they don’t have to worry about hardware and software updates. It’s less expensive and allows them to focus on what they do best – running the day-to-day operation. Online shopping is expected to become more convenient with the technological transformation of online businesses.