2023: the year of outsourcing or insourcing?

Many companies have been preparing for the year 2023 for several months now. Amongst the key questions, one question stands out: is it better to start this new year by outsourcing certain projects or to favour internal expertise? The latter solution is naturally more reassuring, giving the impression of having better control, since all the material is there. But is insourcing really the best strategy for dealing with the competition?

If your company is still thinking about it, ProContact explains why outsourcing is the answer to all the problems that may arise with insourcing.

Outsourcing in 2022: What are the results?

Here are 3 statistics that speak for themselves, compiled by the site www.founderjar.com :

45% of companies have planned to increase outsourcing since the start of the COVID19 pandemic due to a lack of in-house skills (source NTT) – Since the start of the COVID19 pandemic, many companies around the world have seen a growing need to improve and optimise their workplace, as well as attract talent and new skills.

One study found that 48% of companies knew they needed to modernise their working environment because of the pandemic, while 45% of global companies said they planned to outsource more work for the same reason.

The study also indicates that much of the effort previously spent on outsourcing activities will be redirected to finding more professionals with technical skills.

For 70% of companies cost reduction is the main reason for outsourcing (Source Deloitte) – Outsourcing statistics show that the predominant reason companies choose to outsource is simply to reduce costs. Indeed, outsourcing actually helps to reduce overall company costs by significantly minimizing the costs that are normally associated with hiring internal staff. These include recruitment costs, various benefits and health insurance, depending on the employer and location.

62% of companies worldwide are looking to renegotiate their outsourcing terms and contracts (Source BCG) – Companies are still grappling with budgetary issues caused by the COVID-19 pandemic, as the market continues to grow and evolve exponentially. A study has revealed that up to 62% of companies are planning to renegotiate their outsourcing agreements and contracts. The report reveals that 59% of companies are looking to renegotiate the terms and conditions of outsourcing contracts, 56% of companies want to change the pricing structure and 48% of companies want to reinvent the current delivery model.

The obligations of the company today

Today’s companies must meet certain criteria in order to be able to position themselves against the competition, and thus earn money, to evolve and develop. Four obligations form the pillars of a company that lasts in the post-Covid era:

• Delivering a true customer experience – by creating the best results for its customers;
• Streamlining costs – intelligently resisting increasing pressure to improve margins and remain competitive.
• Complying with regulations and laws – remaining compliant in an ever-changing regulatory landscape.
• Equipping – implementing all available technological and operational capabilities to drive diversification and competitive advantage.

Internalisation in 2023?

Internal resources very often have to divide their attention by dealing with several, sometimes conflicting, projects. All this to say that this strategy can fall victim to many limitations:

• Lack of the latest technology;
• Existing system constraints;
• Poor allocation of internal resources;
• A constantly deteriorating user experience;
• Poor analysis and understanding of customer needs;
• Constantly changing regulations.

It is impossible to win tomorrow’s customers with yesterday’s technology and strategies.

The benefits of outsourcing

To cut to the chase, outsourcing is a sound and reliable business strategy. It has repeatedly demonstrated its strength in enabling companies to:

• Significantly reduce expenses;
• Improve the customer experience;
• ;Unlock new revenue streams;
• Explore new business models.

How does this solution help businesses to grow?

Outsourcing is no longer a foreign concept that companies are wary of. With a worldwide presence, it has proven its worth:

• Outsourcing is scalable and cost-effective;
• It challenges conventional ideas;
• Quick access to expertise not available locally or in-house;
• Trained staff to handle a wide range of tasks;
• Allows for sharing of responsibilities and risks.

Get in touch with us!

How can we help you at ProContact? Outsourcing is our business, with a wide range of services:

• Telephone reception
• Remote secretary services
• Polls, surveys, satisfaction studies
• Remote marketing and prospecting (making appointments, prospecting, etc.)