Employers expand outsourcing amid rising demand for expertise
The majority of employers are planning to maintain or expand their level of outsourcing next year as they recognise the additional value provided by outsourced talent, according to a new report.
Findings from Everest Group, supported by Emapta, revealed that eight in 10 respondents expect to maintain or increase their level of outsourcing in the next 12 to 18 months.
This comes as 94% of business leaders agree that outsourcing plays a significant role in workforce transformation.
More than half also believe that other businesses are gaining competitive advantage by leveraging outsourced and offshored talent, according to the report.
"Outsourcing is taking on new strategic importance as talent shortages drive demand for expertise at scale," said Christina Snyder, global chief growth officer and US president for Emapta.
Facing outsourcing challenges
The expansion comes despite multiple challenges faced by organisations in outsourcing. They include:
- Inconsistent talent quality (50%)
- Struggles to maintain multiple providers (43%)
- Challenges with cross-time-zone coordination (39%)
Chhandak Biswas, vice president, Everest Group, said the growing utilisation of outsourcing revealed these various shortcomings for organisations.
"Enterprises are adopting new engagement models to address these inefficiencies, and to gain greater control, scalability, transparency, and cultural alignment, unlocking the next wave of value from outsourcing," Biswas said.
According to the report, 49% of business leaders are now utilising a dedicated staffing model for their outsourced operations. Another 35% plan to adopt it next year.
"With dedicated staffing, companies can access AI-ready, highly skilled talent, ensure consistent quality, and directly manage offshore teams without time zone challenges," Snyder said.
"This enables organisations to scale globally while maintaining alignment and operational excellence."
