What are the most common reasons why companies choose these types of collaboration models?
According to Deloitte’s 2022 Global Outsourcing/Outstaffing Research, half of managers believe that finding the right specialist is the biggest inner issue and it takes a lot of time. This problem is related to the data analysis tools and methods’ narrowness of most companies.
In response to rapid technological growth, many companies are choosing outstaffing and outsourcing as strategies to maintain their competitiveness.
– Expansion of geographical diversity. Companies are paying more and more attention to new regions and countries for outsourcing and outstaffing. We will see growth in global outsourcing markets such as India, Philippines, Ukraine, Poland and others in 2023. These countries offer highly skilled specialists at competitive prices, making them attractive to companies aimed to reduce costs.
– Hybrid models’ usage increase. Companies are now using hybrid models frequently, combining internal resources with outsourcing and outstaffing services. This allows them to flexibly respond to changes in business needs and use available resources in the most efficient way possible.
– Evolution of AI and robotization. In 2023, the use of artificial intelligence will transform from an innovation to the norm. For example, large retail is increasing interest in cloud-based AI solutions for automating operational processes, predictive analytics, detecting fraudulent activities, working with Big Data and hyper-personalization of sales offers.
– Increased focus on quality and safety. Due to the increasing cybersecurity threats and regulatory requirements, companies are placing greater emphasis on providing high quality services and protecting data. This includes strict quality control, certification and compliance with relevant safety standards.
– Development of new models of cooperation. In 2023, new cooperation models emerge, such as partnership as equals or long-term strategic partnerships. This allows companies to work more closely with service providers and create mutually beneficial relationships.
– Increase of Cloud specialization. Cloud technology continues to evolve, with many companies migrating their applications and infrastructure to the cloud. Due to this, the demand for DevOps engineers specializing in cloud platforms such as AWS, Azure or Google Cloud is also growing. Outsourcing/outstaffing allows companies to gain access to experienced specialists in this field.
– Increased use of data analytics. In 2023, companies realized the value of data and used data analytics to make business decisions. Outsourcing/outstaffing data analytics specialists will allow companies to receive expert assistance in data processing and analysis.
– Growing demand for remote work. Due to the COVID-19 pandemic and the implementation of social distancing measures, companies have turned to outstaffing and outsourcing to support business processes. Remote work has become an integral part of work, and this has increased the demand for remote teams and external service providers.
– Expanding DevOps into other industries. If DevOps was previously widely used in the IT sector, now it is beginning to expand into other industries, such as finance, healthcare, manufacturing, etc. Companies are realizing the benefits of DevOps – accelerating product development and delivery, as a result they are turning to outsourcing DevOps engineers to implement these practices. The DevOps market size was valued at US$7.01 billion in 2021 and is projected to reach US$51.18 billion by 2030, growing at a CAGR of 24.7% from 2023 to 2030.
– Growth of augmented/virtual reality projects. The global AR market has experienced significant growth in recent years and was valued at approximately $38.5 billion in 2022, according to Grand View Research. Between 2023 and 2030, the compound annual growth rate (CAGR) is expected to be 39.8%. Recently, AR/VR technologies have become one of the most popular future outsourcing trends, especially for the mobile market. The market is full of uncertainty right now, but the long-term growth potential is huge.