Top 3 Outsourcing Trends To Watch For In 2023

6 min read

Outsourcing provides organization-wide solutions for business owners looking to super-charge their companies while saving time and money, maintaining scalability, and increasing their profit margins. Additionally, outsourcing can provide a dynamic solution to talent acquisition challenges in a competitive hiring market.

While the outsourcing industry continues to grow, it is already thriving with 81% of executives outsourcing cybersecurity and 96% outsourcing data analytics, according to Deloitte's 2022 Global Outsourcing Survey ^[1]. Many business leaders recognize the benefits of and need for outsourcing these departments, and additional types of outsourcing are also gaining popularity. The following outsourcing sectors are currently trending upward, and they are well worth the attention of any savvy business leader.

Outsourcing Trends to Watch in 2023

1. Outsourcing Marketing Management

Most SMBs and startups outsource certain aspects of their marketing departments such as content writing, social media management, and graphic design. However, outsourcing the function of a CMO to an experienced third-party provider is also gaining in popularity. By outsourcing this executive-level position, businesses stand to save loads of money in labor costs while maintaining the services and expertise they require from a highly reputable marketing professional with executive-level experience that can deliver on marketing strategies and research while saving a business the costs of filling a full-time executive position.

2. Outsourcing Financial Management

Using outsourced accounting with a third-party CPA or bookkeeper to handle payroll, taxes, and other back-office tasks has been around for a long time, and it's common practice in most startups and SMBs. Outsourcing a company's financial management, however, is fairly new. However, outsourced accounting providers, today, are offering comprehensive services including traditional bookkeeping and accounting services in addition to controller and chief financial officer services.

These comprehensive outsourced financial management providers are prepared to outfit businesses with a complete team and the latest technology to streamline the bookkeeping, accounting, and financial strategy processes. They are available to help with the nuts and bolts of the back office in addition to assisting business leaders with reading and understanding their financial reports, identifying their profit drivers, and making data-driven decisions to steer their businesses in the right direction.

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3. Increased Business Processes Outsourcing

Business process outsourcing is a blanket term used to refer to the outsourcing of other business positions and processes that occur below the C-suite level. These processes include tasks like graphic design, content creation, basic bookkeeping, administrative assistant services, customer-response management, and more. As technology improves and an increasing number of business leaders and customers become comfortable working with cloud computing and remote communications, the already-popular outsourcing of business processes only stands to become increasingly commonplace.

Outsourcing Best Practices for Business Growth                   

1. Focus on Non-Core Business Functions

One of the main benefits of outsourcing is that it helps to conserve time, money, and other resources so that they can be more effectively dedicated to serving your core business function and goals. For this reason, you should focus on outsourcing only the aspects of your business that are not central to your unique value proposition.

For most businesses, the departments that can be outsourced to save time, money, and resources without compromising the quality of your products or services most commonly include departments like bookkeeping and accounting, cybersecurity and information technology, marketing, and legal. In some circumstances, outsourcing customer response management can also be beneficial if you require the capacity to handle a high volume of calls or contacts but cannot afford to hire a high volume of customer-facing professionals.

2. Check Credentials

Before you decide to team up with a third-party service provider, be sure you thoroughly vet the provider, shop around, and compare them to their competitors in the industry. What credentials do they require their professionals to have? What experience do they have working with businesses in your particular industry? Can they provide you with any success stories about businesses they have worked with or are currently working with?

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3. Ask About Scalable Services

You should also ensure that the outsourced service provider you choose will be able to grow (or shrink) the services they provide you as your business's needs change. You do not want to pay for services now that you do not actually need now. However, you want to be able to increase the services you receive, as you need to. It's smart to find out how flexible their service packages are and to learn about the various levels of service available so that you can plan, prepare, and budget for your company's future outsourcing needs.

4. Understand What You're Paying For

In addition to learning about the flexibility of services available, you should also have a very clear understanding of what you are signing up for and how much you will be paying. Ask for everything in writing, so that you can look over the provider's fees. For example, you should understand what comes with the basic package you have chosen and whether you are limited to any number of any particular service during your subscription term. If there are limitations, ask about surcharges and fees for additional services.

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It is also a good idea to ask how available your team of outsourced service providers will be for communication and support. Ask how much communication or support and what kind of communication or support your service package includes. For example, find out whether you can call or email a member of your outsourced team at any time for additional support or if this type of communication will incur an additional service charge.

5. Ask About the Process and What to Expect

Before signing a contract with an outsourced service provider, you should also be clear on the process of integrating their services with your business's operations. Ask about their implementation plan, how it works, and what assistance will be required from employees in your business. Ask what your responsibilities will be in the partnership going forward to ensure a smooth integration of outsourced services into your current operations.

Better Business Leadership Through Outsourcing

Outsourcing saves time and money, and it provides business leaders with the opportunity to streamline their operations, budget efficiently, and maximize profits. By outsourcing the non-core aspects of your business, you can strengthen your overall business strategy while ensuring you take the right steps to achieve your future goals. 

[1] https://www2.deloitte.com/us/en/pages/operations/articles/global-outsourcing-survey.html