3 Outsourcing Trends to See in 2023

Hiring a full-time employee is costly, with estimates ranging from three to four times the salary of the position. After you hire someone, you must provide adequate compensation (especially in a tight labor market where talent is at a premium). Paychecks, perks, and benefits all add up quickly. The risk of overspending on hiring is very real, especially for companies in the startup or rapid growth stages. Outsourcing is one way a growing company can avoid the mistake of rapidly expanding its team.

However, just as with hiring, you don’t want to outsource anything to anyone. Here are some outsourcing trends that can help a healthy business stay on track as it expands in 2023.

1. Financial Management Outsourcing

Finance is always on the cutting edge of innovation. For years, fintech has been simplifying commercial activity. Bringing in a third-party accountant is nothing new when it comes to outsourcing.

The rise of outsourced financial leadership is expected to change things in 2023. A growing number of outsourcing firms are taking on the task of making 10,000-foot financial decisions for others.

Outsourced CFOs, such as the team at Aquifer (who refer to themselves as “Financial Jedis” with “professional financial expertise”), are providing startup-specific finance departments. From late seed to series A, these services help manage spending and maintain transparency.

Finance has always been difficult to delegate. Outsourced CFOs will provide a much-needed lifeline to struggling startups by 2023.

2. Marketing Management Outsourcing

The chief marketing officer is another C-suite position being outsourced. The current trend in this case is to go with a fractional CMO.

These are highly skilled marketing executives who work on a contract basis with businesses. This is usually for a few hours per month.

Neal Schaffer is a fractional CMO who exemplifies how valuable the position is to both clients and service providers. The outsourced executive assists multiple companies in marketing themselves successfully at a fraction of the cost of a full-time salaried CMO. Schaffer adds that fractional CMOs are even more cost-effective because they do not require long tenures at a company.

Fractional CMOs are an excellent choice for startups and SMBs (small and medium-sized businesses) that do not yet have the resources to hire a full-time CMO. They offer a limited amount of high-quality advice that can assist a smaller company in its early stages of development.

3. Business Process Outsourcing Expands

The preceding two examples demonstrate the impact of outsourcing on the C-suite. However, the majority of outsourcing activity occurs further down the organizational chart, and this trend is expected to continue in 2023.

According to one Grand View Research report, the global BPO (business process outsourcing) market will be worth $261.9 billion by 2022. Outsourcing a wide range of business functions, operations, and responsibilities to external service providers is referred to as BPO.

Upwork and Power Publish are two platforms that demonstrate this type of outsourcing in action. They provide a fleet of freelancers and SMEs (subject matter experts) who can relieve a smaller marketing team of the burden of content creation.

The savings and flexibility offered by the BPO market are constantly attracting new players. As a result, Grand View expects the market’s compound annual growth rate to be a staggering 9.4% over the next few years, equating to the market more than doubling to $525.2 billion by 2030.

From the rise of outsourced CFOs and fractional CMOs to the explosive growth of the BPO market, it’s clear that delegating business activities to third parties will continue to be a hot topic in 2023. As the quantity and quality of outsourced responsibilities increase, it will be interesting to see how they set the stage for future interactions between an increasingly smaller, intertwined global economy.

Source : forbes.com

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About Skyhigh.Vip

Skyhigh.Vip is a global institutional investor with a vast interest in Arts / Construction / Education / Business Services / E-Sports and various other growth industries.  

Several of its popular portfolios include GO Chambers which is the world’s largest business chamber listing provider with over 30,000 active chambers as its members.  

Outsource Guru is the global choice for Business Process Outsourcing that offers a full stack of services for all aspects of business process flow and together with Flexgigzz.com as a platform for freelancers aims to provide best services for many businesses.

For growth industries there is Point of Authority for a professional E-sport team and gaming hardware superstore, and there is AtelierAuction which is an investable art auctioneer and being in the art scene for decades.