Business process outsourcing (BPO) has gone through various modifications over the years, though the importance of outsourcing has nevertheless been realized ever more. Quickly evolving technology and the resultant altering of customer expectations are causing outsourcing companies to change the manner in which they offer services. They have to be more profitable and attractive than in-house solutions for businesses to sign up with them. This does pose new challenges as well as opportunities for outsourcing providers and customer companies.
It is true that organizations once treaded the outsourcing path just to reduce operating costs and save resources, but now there are various other reasons as well to outsource which means businesses now work with a much wider range of outsourcing providers or a single provider offering wider services. And the demands and expectations have gotten more and more complex. Here are three of the most prominent trends that describe the changes over the years.
Innovation Is the Key
One of the most evident trends has been growing innovation. Outsourcing providers are getting more and more efficient and proficient in the services they provide, which means there are benefits other than cost savings too. In fact, the new requirement is “value”, which is a deeper extension of cost savings. The 2016 Global Outsourcing Survey by Deloitte reveals that value would be measured by the manner in which outsourcing providers enable businesses to grow through innovative solutions and processes and broad service potential.
The other very prominent trend is the aforementioned complexity. Again, the realization by businesses that outsourced solutions can enable them to perform much more than merely reduce expenses in hiring workforce is the reason behind this. This has resulted in digital transformation processes creating more collaborative and beneficial relationships with outsourcing partners. These complex processes require service providers to have much wider skill sets for which they hire and train new staff with these skills while updating their technological resources. Outsourcing providers now offer end-to-end solutions for businesses.
Need for Advanced Security
Advanced and intelligent security solutions are some of the areas where outsourcing providers would need to excel in, beyond their regular field of work. With more BPO services provided through the cloud, security is a serious concern. Businesses seeking outsourced services are now quite particular in mentioning security requirements as part of their service contracts. Vendors are therefore obliged to satisfy security requirements or it would breach contractual obligations. And to satisfy the client businesses, outsourcing providers may also exceed the basic security requirements through more innovative technological solutions.
And let’s not forget that the global political scene is much more volatile than before. The Brexit referendum, where the majority of UK citizens voted to leave the European Union (EU), has caused much uncertainty with British companies reluctant to recruit new employees, meaning they would resort to contingent labor solutions. These changes also affect the services industry.
However, in spite of the various potentially groundbreaking changes, the importance of business process outsourcing continues to be felt and that doesn’t seem to be changing anytime soon.