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Everest Group survey points to a flexible year for outsourcing in 2023 as global enterprises prioritize cost savings, talent management

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Our advice to enterprises is not to obsess about the uncertainty of their external environment, but to focus on creating the agility to respond quickly as the situation unfolds.

DALLAS (PRWEB) January 05, 2023

In the face of macroeconomic uncertainty, most enterprises feel cautiously optimistic about 2023 and are tapping outsourcing resources to control costs and meet talent demand, according to results from Everest Group’s annual key issues survey. expect to do. In fact, more than 80% of respondents expect their investment in outsourcing for IT services (ITS) and business process services (BPS) to remain the same or increase in 2023 compared to 2022, and more than 40% of their global Optimistic about development. Services budget in the coming year.

Everest Group’s 2023 Key Issues study includes inputs from 200 global leaders across enterprises, Global Business Services (GBS) centers and service providers. Everest Group presented key findings from this research in its December 13 webinar, “Rise Above Economic Uncertainty and Succeed.” Webinar decks and recordings are available for complimentary download.

Asked to rank their top-of-mind issues for 2023, enterprises cited “price and cost pressures” as number one this year, moving from second last year to the top spot. “Talent/skills shortage,” which was ranked number one in 2022, dropped to the third spot. “Slowdown in demand,” which was at number 10 in 2022, has moved up to the number 4 position.

Top Mind Issues for Enterprises in 2023

1. Price/Cost Pressure

2. Evolving customer needs and business model

3. Talent/Skill Shortage

4. Slowdown in demand

5. Slowdown in customer decision making

As a result of these concerns, enterprises have identified cost optimization, digital transformation and productivity improvement as their top three priorities going into 2023.

In light of these results and its corporate body of research, Everest Group predicts five trends for the new year:

1. Portfolio rebalancing by enterprises, a key service provider, is in the cards. The percentage of enterprises expecting to rebalance their workloads among providers has increased from 25% last year to 36% in 2023. The number of those expecting to consolidate or rationalize service provider portfolios in the next 12 months increased from 20% last year to 34%. ,

2. The talent demand-supply mismatch will continue. Enterprises will focus on internal talent management (upskilling and employee experience/engagement) as higher priorities than recruitment.

3. Service provider bill rates will increase, though at a slower rate than in 2022. To manage the impact of inflation, service providers will raise price/rate cards and optimize costs by employing automation and adjusting the mix, scope and roles of locations.

4. Service delivery model will continue to evolve. Organizations will leverage alternative distribution strategies to optimize costs and gain access to talent. Examples include remote and hybrid workers, tier-2/3 locations, center setups in offshore-adjacent countries, and the establishment of smaller, satellite centers.

5. Workable digital investments will be given priority over moonshot investments. Proven investments such as cloud solutions, cyber security, analytics, advanced automation (AI, cognitive) and automation (RPA) will remain a high priority for enterprises in 2023. Other technologies (such as Internet of Things, UX/CX design, blockchain, mobility, edge computing, Web 3/Metaverse, 5G/6G and Extended Reality/AR/VR) will receive less focus.

During the webinar, Everest Group experts suggested ways organizations can address this new reality, including strategies for pricing, sourcing, ESG and potential technology solutions.

“Our advice to enterprises is not to obsess over the uncertainty of their external environment, but instead focus on creating the agility to respond quickly to the situation,” said Rajesh Ranjan, Partner, Everest Group. “This will require them to strategically leverage global services, human capital, technology initiatives and delivery models to not only address the challenges ahead but prepare the organization to benefit when they come out Could Put another way, don’t miss the forest for the trees.

Register here to watch the on-demand webinar and receive a complimentary copy of Deck.

*Additional resources available from Everest Group*

About Everest Group

Everest Group is a leading research firm that helps business leaders make informed decisions. We guide clients through today’s market challenges and strengthen their strategies by applying problem-solving relevant to their unique situations. It maximizes operational and financial performance and transformative experiences. Our deep expertise and rigorous research focused on technology, business processes and engineering through the lens of talent, sustainability and sourcing provide precise and action-oriented guidance. Find more information and in-depth content at http://www.everestgrp.com.

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