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Why outsourcing is the answer to U.S. talent shortage


The demand for labor has not recovered since the COVID-19 pandemic hit the United States. In fact, there are nearly 3 million fewer Americans working today compared to February 2020.

U.S. businesses face unprecedented challenges finding workers in today’s competitive labor market. Here are a few key statistics about the talent shortage:

Despite high levels of unemployment, many industries, including logistics, will continue to struggle to find workers. The good news is that outsourcing can be a valuable tool to bridge the talent gap and remain competitive.

Understanding the U.S. labor shortage

With nearly 10 million job openings in the United States, it’s pretty clear that there aren’t enough workers to fill them. Adding to this dilemma is an aging and retiring population. As the Baby Boomer generation continues to retire, expect continued labor shortages.

In addition to this, the pandemic transformed the workplace. Unemployed workers who lost their jobs during the pandemic shared what’s keeping them from returning to work in 2023:

While businesses navigate fierce competition for skilled workers, outsourcing is one immediate solution to the U.S. talent shortage.

The true cost of managing back office in-house

In a tight labor market, businesses know the extensive costs of hiring, training, and retaining employees — especially for cumbersome back-office processes. For hiring alone, the average cost per hire is nearly $4,700.

In addition, companies across the board must deal with back-office talent deficits — one recent study found 58% of respondents experienced staffing shortages. In contrast, 49% saw an increase in back-office staff turnover.

While back-office processes can be unwieldy, they are crucial to an organization’s successful operation. From in-depth technical support to a wide range of business processes, creating efficiencies in the back office can deliver commercial and competitive advantages.

Outsourcing as key to back-office agility

Outsourcing back-office processing — including document management, order processing, finance and accounting, and HR support — enables businesses to overcome talent shortages efficiently and cost-effectively. It can also allow your business to quickly adapt to changing market conditions and business needs.

By combining onshore and offshore resources, outsourcing providers help businesses to reduce costs, lower attrition, and build a resilient workforce — not to mention bridge the growing talent gap. Here’s how:

  1. Cost: The number one benefit of outsourcing is cost saving. Outsourced service partners take on the responsibility for recruitment, training, and retention and provide cost-effective onshore and offshore delivery models.
  2. Access to a larger talent pool: Outsourcing can help you find candidates with specialized skills in high demand and difficult to find.
  3. Scalability: An outsourcing partner provides flexibility to rapidly scale headcount up or down to meet changing business needs.
  4. Digital transformation: Outsource partners will use streamlined technical processes — including robotic process automation (RPA), analytics, and cloud-based solutions — so that you can access top tech solutions without equivalent investment.
  5. Impact sourcing: ESG and CSR goals can be met by engaging with outsourcing providers that practice impact sourcing. This brings employment opportunities to marginalized or disadvantaged groups, building careers and improving the local economies.
  6. Focus on core business: Outsourcing processes that are important to your operations but not core to your business frees up valuable time and resources to focus on optimizing your essential business competencies.

Bridge the talent gap to drive business growth

More than ever, relying on a mixture of onshore and offshore resources is critical to bridging the talent gap in the United States. In addition to drawing on top talent in cost-effective locations like the Philippines, Kenya, Egypt, and South Africa, outsourcers practicing impact sourcing allow businesses to bring jobs to areas where they’re needed most.

By empowering communities with limited economic opportunity, impact sourcing provides an ethical opportunity for companies to make a meaningful difference while improving bottom lines and significantly contributing to meeting ESG and CSR goals of the company and both internal and external stakeholders.

This responsible approach to outsourcing business processes tends to benefit from a more engaged and motivated workforce with a significantly lower attrition rate. The results from our impact sourcing teams in Kenya show:

How to get started with business outsourcing

To grow your business in a tight labor market by outsourcing, you must rely on a partner with the experience and expertise to meet your unique business needs. Look for the following in searching for the right partner:

With a proven track record spanning over 29 years, ADEC Workforce excels in business process outsourcing solutions from the back office to customer care, document management and more.

Our ADEC USA operation is part of a global team of 4,200+ experts across six continents. We deliver award-winning solutions, tackling challenges and providing exceptional service to businesses worldwide.

Trust us to be your strategic partner in achieving business efficiency, customer satisfaction and success in today’s competitive landscape.

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ADEC Workforce

Global brands and specialized enterprises trust ADEC Workforce to deliver remarkable outcomes through outsourced services. From simple tasks to complex process management – we do the hard work at optimised costs so your business can thrive.

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