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Offshoring is becoming more popular for businesses that want to go digital and save time and costs. With such demand from a number of growing industries, hiring needs have become more complex.

Based on industry reports, Technology & Transformation and Banking & Finance companies are expected to spend more than $700 billion annually on outsourcing. These industries are also known to be flexible and adaptable this 2023 despite business disruptions, such as the pandemic and global economic risk.

Industry trends watch for 2023 - offshore outsourcing in australia

To better prepare your business, here are several offshore outsourcing trends to anticipate this year. Learn how to maximise these opportunities and see how organisations adopt offshoring as a strategic move for development.

  1. Geographic Diversification

Geographical diversification is part of most multinational companies’ growth strategy. Diversifying resources across regions allows them to reduce costs and gain from favorable trade agreements and government policies. Companies consider different aspects, from competitiveness, cultural disposition, political ideology, and currency stability.

With geographic diversification, businesses can leverage global expansion opportunities and keep their business stable with enormous growth potential despite the economic crisis.

Tip: Despite stiff competition, the Philippines remains one of the top outsourcing destinations in  2023. With its fast-growing economy, great Western culture, and educated and huge talent pool,  it is still home to offshoring destinations worldwide.  Read more about why most companies prefer the Philippines.

  1. Prioritising Quality

Companies are now capitalising on high-quality services to attract and retain customers. Thus, pushing them to invest in highly-skilled talent and advanced technology, which can be expensive in some countries. As a result, companies are now hiring tech talent such as IT, Software Development, and similar functions.

The global market for tech offshoring was around $526.6 billion in 2021, and it is expected to reach $682.3 billion by 2027. Below are a few of the reasons why tech roles have been associated with quality in recent years:

  • The rise of AI – Companies are capitalising on AI technologies to increase efficiency and accuracy, and improve customer service. AI and ML professionals will continue to be in demand in the coming years.
  • Technology means systems – Tech professionals are helping to track and streamline company processes, manage contact and employees, and maintain records, to enable businesses to grow rapidly.
  • Security – With the rise in cybercrime and data breaches, tight security is one of the priorities of businesses, and strict security means – saving money and continuing business growth.

If you’re planning to hire Tech Roles to improve your product, service, or business operation, hiring an offshoring provider is necessary. At Satellite Office, we can build your dedicated Tech offshore team in easy steps – we understand your requirement, candidate sourcing and screening, selection, and onboarding.

  1. Ensuring Business Continuity 

Businesses now believe strategic partnerships with fewer but reputable outsourcing companies can ensure business continuity. They can work with exclusivity and faster turnaround time. You can achieve the hiring goals effectively and efficiently and at the same time collaborate to improve the process and team to ensure business growth.

When another global disruption hits, your company can’t afford another main onshore office shutdown. Through offshoring, your backend operation can continue while working on the recovery. Your highly-skilled offshore staff can continuously take care of Administrative, Customer Service, Finance, Back Office, Creative Design, and more tasks.

With online collaboration more accessible than ever, you can explore how outsourcing can strengthen your business.

  1. Wanting Business Flexibility and Adaptability

The COVID-19 pandemic disrupted industries across the globe. As businesses start to recover, service providers are also pushed to offer flexible work arrangements to their employees and implement pivot strategies to adjust. Building a team with skilled staff, who are willing to go the extra mile to support your need is critical in business recovery. Having the right offshoring partner is vital to achieving this.

At Satellite Office, we take a partnership approach to understand your business and talent requirements. Our industry-specialised recruitment team will take care of candidate sourcing and screening and provide recommendations based on in-depth Philippine market research to help you make hiring decisions confidently.

Our customised recruitment process ensures that every person we endorse for processing is thoroughly screened to match your talent needs, enabling you to select the best candidate for your role. In addition, we have an efficient timeline that allows you to hire the best talent in as short as four weeks.

  1. Talent War

According to research firm Gartner, talent shortage became the top emerging risk for companies in 2019 which was ranked third in their 2018 study.

We are now at a 16-year-high global talent shortage and it’s not slowing down. A Korn Ferry study called Global Talent Crunch expects an 85 million person shortage by 2030 and could result in about $8.5 trillion in unrealised annual revenues. ManpowerGroup also reported a shortage of talent specialising in new technologies in infrastructure and security in the market. You can see hundreds of job postings from companies across industries requiring similar qualifications and experience. It is a talent war, and multiple recruiters are contacting these niche talent.

Though upskilling the in-house team is possible, it can be time-consuming, and some projects might be delayed, and so is the revenue. Outsourcing hybrid talent from providers is desirable. By consulting an outsourcing company like Satellite Office, you can access a database with strong, active pre-qualified candidates ready for your interview.

  1. Adopting Modern Technologies

The emerging technology can automate processes, simplify operations and increase efficiency. Technologies evolve quickly, and companies need to adapt. Because of this, companies now seek service providers that are experts in their respective fields as it helps businesses improve their performance, scalability, and competitiveness.

Outsourcing experts use different assessment tools and machines to analyse data. Revolutionising outsourcing functions with technology brings a new approach and adds value to businesses. Here are the leading technologies used in the outsourcing industry:

  • RPA or Robotic Process Automation – RPA is software robotics that uses automation technologies and is programmed to perform high-volume and repetitive tasks such as extracting data and moving files. Using robots to perform repetitive tasks is more cost-effective, resulting in high demand for RPA.
  • Artificial Intelligence and Machine Learning – Artificial intelligence is a technology that enables a machine to simulate human behavior and perform tasks in a real-world environment. It automates tasks, fast-tracks decision-making, and boosts customer conversations through chatbots. When AI and machine learning are incorporated into the businesses’ strategic plan, it transforms the data into actionable insights with greater speed and efficiency.
  • Cloud Computing – Cloud-based software offers companies huge cost-saving potential and the ability to use software applications from any device. As a result, employees can carry their files and interact with the cloud online to complete their daily tasks. Cloud computing services also allow businesses to back up their large files, ensuring they are immediately available during a hard drive crash.

Modern businesses need to move faster and meet ever-growing customer expectations while realising higher levels of business efficiency. Companies are looking for ways to implement automated processes to surpass this challenge and ensure employees can focus on critical and meaningful tasks.

  1. Outsourcing for Startups and Small Businesses

Startups typically need a fully developed business model, and a  higher capital to move on to the next business phase. When hiring talent, startups seek cost-effective solutions for workforce and logistical requirements. Startup companies are leaning towards hiring outsourced services to reduce operating costs and achieve similar quality results.

They are starting to see the benefits of having an outsourced workforce. For them, it is a practical solution offering quality service while reducing operational costs and allowing them to focus on growth and innovations.

If you’re a start-up or small business, you don’t need to juggle multiple functions and try to keep everything balanced. You can outsource processes such as graphic design, software development, content, SEO, or an entire digital marketing team that can help you improve your product and process and stay ahead of the competitive market.

While budget constraints can be a hurdle, most offshoring companies can design customisable solutions to fit your budget and needs. They can enable you to scale up your team and focus more on growing your business.

  1. Remote Work Setup

Remote work is the new norm. It allows employees to work from home or anywhere. According to a study on remote work, 82% said they prefer working from home, while 64% of employees said they are more productive in this kind of work setup. This trend is expected to continue in 2023 and beyond.

Here are some advantages of a remote work setup:

  • Remote work setup helps the company to increase employee satisfaction and ensure work-life balance and retention.
  • It is cost-saving. Businesses can save on office rentals, utilities, and other operating expenses while employees can save bucks on travel costs, parking, meals, coffee, birthday cakes, clothes for work, and many more.
  • It gives employees a comfortable environment. You can set up your own working station to express your creativity and become more productive when working remotely. Productivity is essential to the growth of the business and productive employees mean efficiency and more revenue.

In addition, a remote company can also have a hybrid work setup. Employees can spend a few days in the office and rest at home. You only need to ensure that everyone stays in touch.

At Satellite Office, we let you choose the best option for your team:

  • Remote set-up or Hybrid  – Our Full-Service Model allows you to build highly skilled Work From Office offshore teams based in the Philippines. You manage your Work From Office team the way you want while we provide modern, upscale office facilities, recruitment, HR, payroll, and IT support for your team so that you can focus on your business.
  • Plug & Play office spaces –  Satellite Office provides you and your team with premium office spaces in 6 locations in the 3 major Metro Manila business districts — BGC (Bonifacio Global City), Makati, and Ortigas, as well as in Cebu City. Flexible office options from 1 offshore staff to more than 100, with the ability to scale up and down.
  1. Customer Experience and Satisfaction

Customers come in contact through multiple channels, such as social media, your website, blog, ads, or emails, and these interactions are significant for your customers. This year, Customer Experience and Satisfaction are still on the top offshoring solutions list and will remain vital in the coming years.

Here are some advantages of customer experience for companies:

  • Retaining a customer is cost-effective. Acquiring new customers will cost 6-7 times more than keeping current customers. This will go a long way in saving costs and growing your business revenue. Investing in the existing process and systems to retain a customer is better than spending a lot of time acquiring new clients.
  • Increase in sales revenue. Companies can build strong relationships with satisfied customers, which boosts brand loyalty and makes them repeat clients.
  • Competition differentiator. In a competitive market, customer satisfaction must be the center of your customer strategy. Marketing campaigns and promotions will only help you if your customers are satisfied. Brands with low customer satisfaction levels are likely to perish in the future. Brands with advocates are far more likely to do better.

Read more: How Offshoring Can Improve Customer Experience and Service Quality

  1. Reduced Operational Cost

Hiring an offshoring partner or third-party recruitment services costs less than setting up in-house operations, and this benefit will continue to surprise businesses this year. Here are a few of the reasons why you can save bucks:

  • External offshoring is a separate entity; it is an enterprise responsible for the salary of the talent.
  • Resources from an outsourcing partner have the experience to get the job done according to expectations.
  • An orientation or overview of the project may be required, but additional training expense is not needed.
  • You can save real-estate costs. You can consider hiring a team in a remote work setup and do not get ample office space.
  • You’re not obliged to pay local government-mandated benefits for your outsourced team as they’re based in different countries.

Outsourcing talent is essential, especially for startup companies. If you’re a business owner planning to grow your company, offshoring could be a suitable hiring model for you. It’s one of the organisations’ best cost-saving strategies to expand your business operations.

  1. Agility, Flexibility, and Adaptability

Lockdowns, labor shortages, frustrated customers, travel restrictions, and volatile trade landscapes – these and other factors are driving outsourcing companies to become more agile, flexible, and adaptable in 2023 and beyond. To stay ahead, companies are now considering remote work setup, access to technologies and markets, and contracts that allow them to mainstream as the business environment evolves. This year, offshore teams will remain to:

  • Boost speed and efficiency – Outsourced talent can help businesses complete their projects faster and more accurately. You can save time and optimise your performance.
  • Attain flexibility – Outsourced resources are flexible. Whether you assign them to recover an old project or start a new one from scratch, they can always perform.

Start Your Journey with Satellite Office

Satellite Office has a proven track record of assisting businesses to leverage the benefits of outsourcing by building a dedicated, highly skilled, and cost-efficient offshore team in the Philippines.

Our tailored offshore outsourcing solutions give businesses full control of their remote team’s productivity, output quality, and targets while we provide comprehensive support that makes managing offshore employees as simple as possible. Experience a full-service model with no hidden fees, including premium facilities, HR, IT infrastructure, account management, and payroll support services.


Looking for an offshore support service partner? Get a free assessment now, and let’s see how we can help.


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