Posted by Shivali Anand
September 29, 2021 | 3-minute read (478 words)
You're not alone if you're thinking about hiring outsourced personnel to help your company as it expands. Businesses of all sizes may benefit from the contributions of contractors, so outsourcing isn’t exclusively for startups. Google and Slack are just two examples of organizations that have scaled using contractors, and data show that this trend is rising.
According to Deloitte research, global outsourcing and shared services (OSS) spending reached $688.4 billion in 2018 and is anticipated to reach $971.2 billion by 2023. Deloitte estimates that the OSS market will reach $1.0 trillion in the next six years if current trends continue.
IT outsourcing, which involves the daily administration of IT assets and properties, and business process outsourcing are two of the most-frequently outsourced services, according to the "Outsourcing and Shared Services 2019-2023” report, which includes such areas as finance, accounting, HR and customer support. As more organizations see the benefits of these services, OSS options continue to expand.
These are the advantages of outsourcing, according to businesses
Deloitte polled outsourcing buyers and vendors about the benefits of outsourcing as part of the research. The following are the most important advantages, according to respondents:
The ability of entrepreneurs to focus on crucial abilities necessary to build their company came to the top of the benefits of outsourcing, which is unsurprising. The most fundamental advantage of outsourcing critical business services is that it allows the firm to focus on its core competencies.
- Allows for a greater concentration on crucial functions: 65%
- Cuts costs through labor arbitrage: 63%
- Resolves capability concerns: 53%
- Increases global scalability: 33%
- Addresses critical business requirements: 33%
- Improves service quality: 28%
- Provides access to intellectual capital: 26%
- Contributes to a more significant transformation: 20%
- Manages business environments: 18%
- Assists in meeting regulatory requirements: 16%
Keep up with these "revolutionary shifts"
As more businesses see the value of OSS, the availability of these services continues to rise, partly owing to technical improvements. Business process as a service (BPaaS), big data, software as a service (SaaS), corporate mobility, and agile methodologies, according to Deloitte, are causing "revolutionary transformations in the OSS sector.”
Cloud computing, artificial intelligence and robotic process automation are emerging as areas of interest for outsourcing in the future. Additional tools, such as cybersecurity measures to keep cloud computing data secure – and compliance methods to guarantee that technical advances take place inside the legal regulatory system – will be required due to these increasing technologies.
According to Deloitte, "Over the past few decades, the usage and application of OSS have become an effective and common business practice not just as a cost-cutting measure but also as a time-saver and enabler of innovation, acting as the key to building a sustained competitive advantage." Whether you want to hire a virtual CFO or outsource your HR, you'll be in good business if you follow these increasing trends.