The Rise of Outsourcing. Driving Growth in a Fragile Market
I recently came across an alarming statistic. According to layoffs.fyi, over 212,000 employees have been laid off by 830 technology companies in the first six months of 2023. LinkedIn, one of the latest tech giants to announce layoffs recently cut over 700 positions. It had me questioning, how will these tech companies fill the gaps left by a reduced workforce and still effectively serve their customers?
A Look Inside LinkedIn’s Workforce Strategy
LinkedIn released a statement sharing some details on their plans to move ahead. The CEO stated that, “With the market and customer demand fluctuating more, and to serve emerging and growth markets more effectively, we are expanding the use of vendors.” They plan to bring on external partners to take on new and existing work.
This means that outsourcing will be a key component of their strategy. Why? Because it makes sense. Outsourcing streamlines operations and reduces overhead costs while effectively filling in the gaps created by having a smaller staff. It hands off the onerous tasks of recruiting, training, managing qualified talent, allowing a business to get back to focusing on core competencies. External partners like Business Process Outsources (BPOs) support process improvement initiatives. LinkedIn recognizes that and also realizes that this strategy doesn’t have to be all or nothing. Outsourcing is an opportunity to complement internal teams in order to maintain or even increase performance and serve customers.
Outsourcing is a Growing Movement in Tech
LinkedIn is doing this to help make quicker decisions. It is a primary reason many look to an outsourcing partner. But this strategy is not limited to a few companies, it is a global movement. According to Strait’s Research, the Business Process Outsourcing market size is projected to grow 9% over the next seven years to be a $513B industry, with the customer service segment to hold the largest share in the global business process outsourcing market. An outside perspective creates those lightbulb moments to help a business not only survive but thrive in a weak economy. Outsourcing is a solid long-term strategy to reduce overhead costs and accelerate growth goals. But it requires a shift in your business model. The right partner will work with you to create a customized strategy that meets your unique needs.
Outsourcing works in a tight labor market or booming economy
As the tech industry faces the challenges of a weak global economy and looks for ways to reduce costs, outsourcing emerges as a powerful solution. By embracing external partnerships, augmenting internal teams strategically, and leveraging the benefits of outsourcing, companies can navigate the uncertainties of the market while maintaining productivity and providing an exceptional experience for prospects and customers.
Unlock and execute new ideas to drive growth without the burden of additional overhead costs. Easily scale your workforce up or down in response to your organization’s current and forecasted financial performance. This flexibility ensures that you can adapt to changing market dynamics without compromising productivity.
JDA TSG are experts in supporting brands to deliver high-priority process improvement and mobilizing talent to maintain your competitive advantage. Watch a recording of our recent webinar to learn more about maintaining growth in a fragile economy.