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Freelance & Outsourcing Industry: Difference between revisions
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== Outsourcing == | == Outsourcing == | ||
=== Q1 2023 ISG Index === | |||
Data from the ISG Index, which measures commercial outsourcing contracts with annual contract value (ACV) of $5 million or more<ref>https://ir.isg-one.com/news-market-information/press-releases/news-details/2023/Global-Spending-on-IT-and-Business-Services-Down-8-in-Q1-ISG-Index-Finds/default.aspx</ref><ref>https://isg-one.com/docs/default-source/default-document-library/1q23-isg-index-presentation.pdf?sfvrsn=4439d631_0</ref> | Data from the ISG Index, which measures commercial outsourcing contracts with annual contract value (ACV) of $5 million or more<ref>https://ir.isg-one.com/news-market-information/press-releases/news-details/2023/Global-Spending-on-IT-and-Business-Services-Down-8-in-Q1-ISG-Index-Finds/default.aspx</ref><ref>https://isg-one.com/docs/default-source/default-document-library/1q23-isg-index-presentation.pdf?sfvrsn=4439d631_0</ref> | ||
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“The macro environment remains uncertain, with interest rates, inflation and trouble in the banking sector topping concerns for enterprise clients,” said Hall. “There continues to be more scrutiny on deal signings, especially in discretionary spending areas. Enterprises are revisiting cost optimization, efficiency gains and vendor consolidation deals.” | “The macro environment remains uncertain, with interest rates, inflation and trouble in the banking sector topping concerns for enterprise clients,” said Hall. “There continues to be more scrutiny on deal signings, especially in discretionary spending areas. Enterprises are revisiting cost optimization, efficiency gains and vendor consolidation deals.” | ||
=== Deloitte Survey === | |||
* Acquiring talent is a top internal challenge. 53% of surveyed executives reported increased staff levels over the last two years to match strategic organizational priorities. | |||
* Nearly two-thirds of executives do not feel their organization is ready to face their employee retention challenge. | |||
* Organizations are evolving their sourcing ecosystems to include external providers in their future workforce planning and talent acquisition strategies. 87% of organizations consider external workers part of their workforce | |||
* Next-generation technology skill shortages (e.g., advanced cybersecurity, data science and ML, Infrastructure-as-code) were cited by executives as a top external challenge. | |||
* Organizations are turning to service providers to overcome existing challenges related to skills and services, next-generation technology skill shortages (e.g., advanced cybersecurity, data science and ML, Infrastructure-as-code) were cited | |||
* 76% of all surveyed executives indicated their IT services were delivered via thirdparty models. The shift to prioritizing value over cost efficiencies from third-party services has accelerated this evolution toward a highly outsourced IT environment | |||
* Nearly half (48%) of surveyed executives indicated that they handle business functions internally. Significant opportunity remains for business process outsourcing (BPO) to mature in how it engages with, and realizes benefits from, external service providers beyond cutting costs. | |||
* When asked for anticipated budget changes over the next two years, our survey found an even greater demand for external services across all third-party delivery models. Particularly, 67% of executives signaled an increase in budget for Operate Services. | |||
* Two years ago, 70% of surveyed executives indicated cost was a primary reason for outsourcing.6 Today, while cutting costs ranks within the top four primary drivers for engaging Operate and Managed Services, it is overshadowed by access to new capabilities, business and operating model shifts, and keeping up with technology and regulation. | |||
=== Outsourcing 2008-2009 Recession === | === Outsourcing 2008-2009 Recession === | ||