The Future of Global Outsourcing: Trends and Predictions for 2023 and Beyond

Global Outsourcing

Global outsourcing has become an essential part of many businesses. Outsourcing offers numerous benefits such as cost savings, increased efficiency, access to specialized skills and talent, and improved productivity. According to a recent study by Grand View Research, global outsourcing is predicted to reach USD 525.5 Billion by 2023 and expand at a CAGR from 2023 to 2030. Similarly, according to Outsource Accelerator’s CEO, Derek Gallimore, the outsourcing industry in the Philippines is expected to experience a significant surge, generating 40 million jobs and $600 billion in revenue. Gallimore also stated that the sector is countercyclical, indicating that the cost-cutting measures and potential recession in the West would create more opportunities for outsourcing in the Philippines and other locations.

As the world becomes more interconnected and the global economy continues to grow, it is crucial to stay up to date on the latest trends and predictions for the future of global outsourcing. In this article, we’ll explore some of the emerging trends and predictions that are likely to shape the future of global outsourcing in 2023 and beyond.

Table of Contents

Trend 1: Increased Focus on Security and Data Privacy
Trend 2: Greater Adoption of Artificial Intelligence (AI) and Process Automation (PA)
Trend 3: Growing Importance of Sustainability and Social Responsibility
Trend 4: The Growing Significance of IT Outsourcing and Cloud Computing
Trend 5: Greater Emphasis on Strategic Partnerships

Trend 1: Increased Focus on Security and Data Privacy

Privacy and data security is a growing concern for businesses worldwide, and as outsourcing continues to increase in popularity, it’s essential for companies to prioritize data protection when working with third-party vendors. According to a recent report by Deloitte, cybersecurity is the top external challenge that executives face in achieving their strategic goals, with 81% of executives relying on third-party vendors for cybersecurity capabilities. Additionally, 96% of executives identified service providers as the source for the development of data and analytics capabilities, highlighting the need for service providers to offer talent-integrating solutions and to bear risk as they help clients extract value through data analytics.

A significant concern for 2023 is the impact of emerging technologies such as blockchain and artificial intelligence on privacy and data security. While these technologies offer new opportunities for businesses, they also present new risks and challenges that require careful consideration. Businesses will need to prioritize the adoption of these technologies while ensuring they have robust data security measures in place.

Additionally, the COVID-19 pandemic has forced many businesses to operate remotely, leading to an increase in cyber-attacks and data breaches. Companies must continue to adapt to the new working environment and implement strong data security measures to protect against cyber threats.

As a result of these cyber threats, new and emerging privacy and data protection regulations are expected to impact the outsourcing industry. Many countries are introducing or strengthening their existing privacy and data protection laws, including the European Union’s General Data Protection Regulation (GDPR), which will have been in effect for five years.

Similarly, the Philippines has been working to enhance its cybersecurity measures and promote the adoption of data protection among businesses and organizations operating in the country. In 2021, the country’s Data Privacy Act was amended to include a requirement for personal data breach notification, which mandates organizations to inform the National Privacy Commission and affected individuals of any data breaches. In addition, the government is developing a National Cybersecurity Plan for 2023-2028 to protect the country against increasingly complicated online threats.

Trend 2: Greater Adoption of Artificial Intelligence and Process Automation

Artificial intelligence (AI) and process automation (PA) are rapidly transforming the outsourcing industry. Many businesses are already using AI-powered tools to automate repetitive tasks and improve efficiency. A recent report made by the market research firm Technavio identifies PA as one of the key drivers that will speed up the growth of the outsourcing market during the next few years. This trend is expected to continue in 2023, with outsourcing providers increasingly using AI and PA to deliver more efficient and cost-effective services.

Global Outsourcing

One of the most significant impacts of AI and PA on global outsourcing is in the area of labor outsourcing. AI and PA are expected to drastically reduce the cost and complexity of labor-intensive operations, such as data entry, customer service, and other low-skill tasks. This reduction in complexity will make labor outsourcing more attractive and cost-effective, leading to an increase in the use of labor outsourcing in a variety of industries.

AI and PA are also expected to have a major impact on the way in which outsourced projects are carried out. AI and PA can analyze large and complex datasets more quickly and accurately than ever before, allowing businesses to make more informed decisions about the services they are outsourcing. Furthermore, AI and PA will greatly reduce the amount of time needed to complete outsourced tasks. By automating routine operations, businesses can reduce the amount of time spent on paperwork and other administrative tasks, as well as the amount of time needed to analyze data and make decisions. This will allow businesses to focus on more important tasks, such as product development, customer service, and marketing.

Trend 3: Growing Importance of Sustainability and Social Responsibility

Corporate Social Responsibility (CSR) refers to a voluntary approach adopted by businesses to demonstrate their commitment to society and the environment. It involves a company taking responsibility for its impact on society and the environment beyond its primary objective of generating profits.

CSR is increasingly valued and appreciated by various stakeholders in the business community, such as customers, employees, and investors. Companies that prioritize CSR are often recognized for their efforts and achievements through various awards and accolades. One such example is Sourcefit, which won an award for Corporate Social Responsibility in 2022. The award was in recognition of their commitment to various initiatives that demonstrate their social and environmental responsibility, such as reducing carbon footprint and the promotion of  sustainable food baskets. These initiatives not only showcase their dedication to CSR, but they also have a positive impact on society and the environment.

To implement CSR, companies can engage in various initiatives, including environmental programs that aim to minimize the organization’s impact on the environment, such as reducing waste, emissions, and promoting sustainable practices. Companies may also engage in charity work, supporting various social causes such as poverty alleviation, education, and healthcare.

Another aspect of CSR is ethical labor practices, which involve ensuring fair labor practices and treating employees with dignity and respect. Companies can implement policies and practices that support fair wages, equal opportunities, safe working conditions, and respect for human rights. Finally, companies may also engage in volunteer projects, providing their employees with opportunities to participate in community projects, such as cleaning up local parks or contributing to disaster relief efforts.

Overall, CSR is a critical element for companies to demonstrate their commitment to society and the environment, and it can lead to a positive impact on a company’s reputation, brand perception, employee morale, and business success. CSR can also attract customers, employees, and investors who value social and environmental responsibility and encourage other companies to prioritize CSR in their operations, leading to a more sustainable and socially responsible business landscape.

Trend 4: The Growing Significance of IT Outsourcing and Cloud Computing

The outsourcing industry has experienced significant growth in the IT sector in recent years, with IT tasks accounting for 37% of all outsourced tasks. This growth is driven by various factors, including cost savings, scalability, and flexibility. The average IT department budget allocated to outsourcing is 13.6%, indicating the importance of outsourcing in the IT industry.

However, IT outsourcing has evolved beyond being a cost-cutting method, with businesses now considering it as a crucial enabler for their outsourcing initiatives. The COVID-19 pandemic has accelerated the trend towards a “cloud-first” approach, with more and more businesses striving to move their operations to the cloud. According to a  2020 survey by Deloitte, 90% of businesses consider cloud computing a critical enabler for their outsourcing efforts. But despite the many benefits of a cloud-first approach, data security concerns and other risks remain significant hurdles for many businesses.

In addition, cybersecurity is a growing concern for businesses, with 83% of IT professionals considering outsourcing security services due to budget constraints and staff reductions. Despite the risks involved in safeguarding sensitive data, security is a top priority for 68% of firms.

All that being said, IT outsourcing remains a top priority for businesses, with IT services accounting for the majority of outsourcing contracts generated by global outsourcing companies. A recent study by STX Next suggests that 89% of chief technology officers expect to outsource IT expertise and software development in 2023 and beyond, indicating the continued importance of outsourcing in the IT industry. 

Trend 5: Greater Emphasis on Strategic Partnerships

Another major trend in 2023 is the greater emphasis on strategic partnerships in the outsourcing industry. Instead of viewing outsourcing as a transactional relationship, businesses are now seeking outsourcing providers that can work with them to achieve shared goals through strategic collaboration. The ability to deliver measurable business value through strategic partnerships will be highly valued by businesses seeking outsourcing services.

Furthermore, the global outsourcing industry is continuing to adapt and grow in response to the challenges of the present, and BPO providers are becoming more agile, flexible and adaptable to meet high demand. To facilitate seamless collaboration, companies are building global teams and developing agile, highly responsive ways of working. However, over 60% to 65% of strategic partnerships end in failure, often due to unrealistic expectations, inability to reach a consensus on objectives, and insufficient trust or communication. For these reasons, outsourced partnerships should always be based on transparency and open communication, with clearly defined goals and expectations from both parties.

It is important to establish a strong foundation of trust and mutual understanding from the start, and to regularly evaluate and adjust the partnership to ensure it continues to meet the evolving needs of both organizations. By prioritizing these key factors, outsourced partnerships can achieve long-term success and drive sustainable growth for both the BPO provider and their clients.


In order to stay competitive in the global marketplace, businesses in 2023 will need to prioritize cybersecurity measures to protect sensitive data and maintain customer trust. They will also need to invest in the latest technologies to improve efficiency, streamline operations, and stay ahead of the curve in terms of innovation. 

Additionally, as corporate social responsibility becomes an increasingly important consideration for consumers and investors, businesses will need to demonstrate their commitment to ethical and sustainable practices in their outsourcing partnerships. By emphasizing on the most recent trends and maintaining flexible, transparent partnerships with BPO providers, businesses can position themselves for long-term success and growth in the dynamic and ever-changing global outsourcing industry.

To learn more about outsourcing, you can read our 8 Tips for Successful Outsourcing article. We invite you to follow us on social media and to visit our website to learn more about our services.

banner-finalAbout Us: Sourcefit is a widely recognized US-managed business process outsourcing company based in Manila, Philippines. We proudly serve over 100 clients with a workforce of more than 1,300 employees. Our global centers can serve multiple markets, and our staff is highly proficient in English, Spanish, French, and Portuguese. Whether you need a few or many employees, we can help you achieve your business goals and build high-quality offshore teams.

Latest Awards

Sourcefit’s commitment to excellence has been recognized through numerous industry awards and certifications.

We recently received the Fortress Cyber Security Award from the Business Intelligence Group. Sourcefit was also honored with the prestigious recognition of Best Outsourcing Solutions Provider in the Philippines during the 2023 Business Excellence Awards.

Other awards include: FT ranking of 500 high-growth Asia-Pacific, The Marketing Excellence Awards, Inquirer Growth ChampionHR Asia Awards, among others.

Related Articles

8 Benefits of Outsourcing
8 Questions about Outsourcing You Should Ask
Outsource a Virtual Assistant From the Philippines
Outsource Data Entry Specialists from the Philippines
 What Is a Leased Employee and Why Is It Beneficial for Your Company?

Not sure where to start? Connect with us and see how Sourcefit can help you grow your business.