It’s no secret that the pandemic has changed the way enterprises view and operate their businesses. To gain a better understanding of how top-tier organizations are approaching their operations in 2023, Everest Group conducted its annual Key Issues Survey. The survey uncovered key insights into what enterprises are prioritizing as they transition into 2023 and beyond. Let’s take a look at some of the key findings from this important survey.
Top-of-Mind Issues for Enterprises in 2023
Everest Group’s survey revealed that price/cost pressures remain one of the top concerns for enterprises heading into 2023, as well as evolving customer needs and business models. Talent/skills shortage due to the pandemic was also a major concern for many organizations, along with a slowdown in demand and customer decision-making. These issues have caused many companies to reevaluate their outsourcing strategies and processes for achieving their business objectives.
Priorities Going Into 2023
The survey highlighted cost optimization and digital transformation as major priorities for enterprises going into 2023. Companies are looking to reduce costs wherever possible while still offering quality services to customers. Productivity improvement initiatives and strategies have also been identified as essential components of achieving success in the coming year. Additionally, organizations are focusing on finding new ways to drive revenue growth while increasing efficiency within their operations.
Five Trends Forecasted for 2023
The survey conducted by Everest Group identified five critical trends expected to shape enterprise operations in 2023. As a business, it’s important to stay informed and up-to-date on these trends. Understanding what is happening now and what could happen in the future will help you prepare your strategies accordingly. Read on to learn more about the five key trends forecasted by Everest Group for 2023.
Service Provider Portfolio Rebalancing: With the rise of digital transformation initiatives, enterprises are increasingly demanding different types of services from service providers. To meet this demand, service providers are rebalancing their portfolios to focus on providing top-notch services with a more tailored approach. This trend has been gaining traction since 2020 and is expected to increase in popularity in 2023.
Continuing Talent Demand-Supply Mismatch: Over the past few years, there has been a continuous talent demand-supply mismatch due to increased automation and outsourcing of services as well as skills shortages in certain areas. This trend is expected to continue into 2023 as organizations try to find ways to bridge the gap between talent supply and demand while also keeping costs down.
Increase in Service Provider Bill Rates Slower Than 2022: Due to the impact of COVID-19, many service providers experienced an increase in billing rates during 2020 and 2021. However, this trend is forecasted to slow down in 2023 as service providers start competing for contracts with lower rates than before.
Evolution of Service Delivery Model Featuring Remote Workers: The global pandemic has forced many enterprises to pivot quickly towards remote working models for their employees. This trend is likely here to stay even after the pandemic ends, as enterprises have realized that remote working offers several advantages such as cost savings, increased productivity and flexibility etc.. As a result, we can expect more service delivery models featuring remote workers in 2023 compared to previous years.
Pragmatic Digital Investment Prioritized Over Moonshot Investments Such As IoT etc.: Many organizations have shifted their focus away from large “moonshot” investments such as IoT (Internet of Things) etc., towards more pragmatic digital investments that offer tangible returns on investment within short timeframes such as cloud computing etc.. This trend will continue into 2023 with more organizations shifting away from long-term projects towards shorter-term investments that can offer quick ROI payoffs while also helping them remain competitive in an ever-changing market landscape.
Don’t Be Afraid to Invest in the Future
Given the unclear state of the external environment, it is understandable that enterprises are feeling uncertain and concerned. However, Rajesh Ranjan, partner at Everest Group, emphasizes that in order to not just get through these difficult times but to maximize the upsides once we come out of them, organizations should resist focusing too closely on their individual circumstances and instead invest in creating agility by strategically leveraging global services, human capital and technology initiatives to rapidly respond to changing situations. This broader view is essential for navigating both the present and future.
“Our advice to enterprises is not to obsess about the uncertainty of their external environment but instead focus on creating the agility to respond with speed as the situation unfolds,” said Ranjan. “This will require them to strategically leverage global services, human capital, technology initiatives, and delivery models to not only address the upcoming challenges but position the organization to capture upsides as we come out of it. Put another way, don’t miss the forest for the trees.”
What This Means For Enterprises Moving Forward
The findings from Everest Group’s Annual Key Issues Survey indicate that 2023 is likely to bring changes and challenges for enterprises across all industries. Companies will need to prioritize cost optimization, digital transformation initiatives, productivity improvement strategies, and other tactics if they want to be successful moving forward into 2023 and beyond. By staying ahead of these trends before they become mainstream, companies can position themselves well ahead of the competition and ensure future success within their respective markets. Additionally, it is important that organizations keep up with ever-evolving customer needs so they can continue delivering services efficiently while maintaining high levels of quality assurance throughout their operations.
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