The 2024 Outsourcing Trends Report by consulting firm Wipfli showed that 78% of business leaders have outsourced work in the past six months. It also highlighted how business perspectives on outsourcing have changed dramatically.
Based on insights from 360 C-suite leaders, the report revealed that nearly 75% of those surveyed outsourced at least one executive role or business function, with 78% doing so in the past six months. According to 81% of the respondents, the chief executive officer (CEO) primarily makes the decision to outsource.
Additionally, the study mentioned that 93% of these companies are satisfied with their outsourcing experience. They claimed to achieve outsourcing benefits such as reduced stress, improved focus on strategic goals, and increased cost and time savings.
“No longer just a cost-saving measure”
The report also revealed that outsourcing’s benefits have evolved beyond cost-cutting to allow businesses to access specialized expertise, boost efficiency, and concentrate on core business functions.
“Our research shows that outsourcing is no longer just a cost-saving measure but a strategic tool for accessing talent and driving innovation,” said Christina Trapp, a certified public accountant who oversees Wipfli’s outsourced consulting services.
Trapp added that businesses that outsource can better overcome obstacles and position themselves for long-term success.
Outsourcing executive-level positions
The report also emphasized the increasing trend of executive-level outsourcing. The growing need for specialist knowledge in technology and cyber security led businesses to start employing third-party individuals for higher roles such as chief technical officer (CTO) and chief information security officer (CISO).
This is why technology is among the most frequently outsourced functions at 46%, along with finance and accounting (47%) and human resources (34%). According to Statista, the revenue for information technology (IT) outsourcing is expected to reach $541.10 billion by 2024.
When choosing outsourcing partners, companies often focus on industry experts who understand data protection issues and low costs. The intention is to tap into top-tier talent without the long-term commitments usually associated with permanent employment.
Moreover, when they operate outside organizations’ offices, such executives bring fresh ideas and unique knowledge acquired through experience, making outsourcing a strategic advantage.
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References
Wipfli. (2024, August 12). Wipfli releases 2024 enterprise outsourcing trends report. Retrieved from https://www.wipfli.com/news/2024/wipfli-releases-2024-enterprise-outsourcing-trends-report
Statista. (n.d.). IT Outsourcing – Worldwide. Retrieved from https://www.statista.com/outlook/tmo/it-services/it-outsourcing/worldwide
