The number 1 trend we are seeing in the outsourcing industry is that outsourcing is moving closer to home. Our clients are finding it much easier to work with partners in the same time zone and with a shared goal-oriented mindset. Clear communication and goal alignment allows for a much smoother partnership at all levels and leads to quicker and more efficient results.
The recent past has already dramatically shifted the way we look at outsourcing and those ripple effects only continue to grow. Here are NearShore Technology’s 3 Outsourcing Trends to Look For in 2023.
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Dealing with the Developer Shortage in The United States
According to NASDAQ the most in-demand jobs in the world come from the IT and Data industry, specifically software developers. A high demand is leading companies to hire any talent that comes their way to keep projects on track. However, the lack of skilled talent makes it difficult for companies to grow. The retention rate for IT professionals also continues to grow to nearly 57%, the highest of any industry.
The truth is the IT industry has one of the highest demands for top talent and the highest retention rate for any industry creating very frustrating problems for CIOs and CTOs to solve if they want to meet their goals for the year. The struggle of dealing with the developer shortage in the United States leads managers to look for outsourcing partners and these partnerships are continuing to trend towards Nearshore providers.
Finding the right outsourcing partner or partners provides a bit of relief to these problems because often these partners can pull from a large and qualified talent pool. This ultimately, mitigates the turnover time and stress on your internal team. If someone leaves, the responsibility falls on your outsourcing team to utilize the resources and time to replace them. Some outsourcing partners have a history of loyal employees, creating lower turnover rates. The average NearShore Technology employee stays with the same client for 5+ years.
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Multi-Partner Strategies
If the past few years have taught us anything, it’s that we can’t predict the future, so we should be prepared for anything. In the past we lived in a world where companies trusted a single outsourcing partner for all their needs, but that simply isn’t a smart way to protect against unforeseen circumstances.
Diversification strategies are commonly used in finance to reduce the risk of losses based on concentration, so why should we look at outsourcing any differently? An outsourcing partner is an investment puts into the company to grow the business, the same way a person invests in a stock to grow their portfolio.
Every company has a different method that works best for them, but the goal of using a multi-partner strategy is to mitigate your risk while increasing your ability for growth in all aspects of business.
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Hybrid Teams
So many companies already adopted this business model during the Covid pandemic, but more continue to join the movement. Hybrid teams represent a mix of people working in the corporate offices and people who work from home. Lots of obvious questions and concerns around productivity came to mind when this first started but it’s proven to be no issue in most cases. With almost 2 years of experience under our belts, most companies have worked out any kinks in the system by now. In fact, many studies show the hybrid work has led to more productivity.
Higher productivity stems from many varied reasons. One of which is an increased employee satisfaction due to the flexibility of setting their own hours and being trusted by managers to get their work done. Another key contributor is that the talent pool dramatically increases. Instead of only being able to find talent in a 25-mile radius of your offices, companies and outsourcing partners can find talent from anywhere.
NearShore Technology works underneath this same model, with office locations in Merida and Puebla but we have talent across Mexico ensuring the best of the best for our clients. Most of our management team works from home throughout various locations in the United States which allows for flexibility to travel to our clients or to Mexico. Our hybrid team processes have been in place for nearly 2 years, and it has only made us more efficient.
Overall, 2023 will bring a lot of change to the outsourcing industry because of the past few years. Every company has different model of what will work best for them but finding the right technology partner or partners could the catalyst to reaching your goals. NearShore Technology offers top technology talent who provide custom business solutions that bring innovative ideas to life. Find out how NearShore Technology can be your next technology partner.