A Look at Data Outsourcing Trends in 2020

by | Published on May 19, 2020 | Business Process Outsourcing

Data Outsourcing Trends

Today, outsourcing is very popular option for almost all industries. Data entry is the key process in any business activity and many business organizations have now realized the significance of data entry services provided by reliable outsourcing companies. Outsourcing saves cost and provides access to new technologies, expertise and technical resources that improves the efficiency and productivity of the organization. However, some companies were apprehensive about outsourcing and believed that they could manage all their activities without any delegation. However, experience has proved that this is difficult and time – and resource-consuming. Outsourcing selected activities helps business owners channelize their resources, energy and time optimally to generate more revenue.

The following statistics from Fortunly provide an idea about the scope and extent of outsourcing:

  • The US alone outsources around 300,000 jobs a year
  • 24% of all small businesses choose to outsource to enhance their efficiency
  • 65% of companies that have outsourced earlier are very likely to continue outsourcing
  • 44% of CIOs(Chief Intelligence Officers) report that they are now more likely to outsource than they were five years ago

According to a Deloitte survey, the key factors that encourage companies to outsource are: reduced costs (59 percent), better focus on core activities (57 percent), improved service (31 percent), access to expertise and better knowledge ( 28 percent), better management of business environment (17 percent), better organizational growth and transformation ( 17 percent). These figures show that data outsourcing is expected to grow in the coming years.

Most Outsourced Business Activities

Some of the most common activities outsourced to the third party vendors are data entry, accounting, IT, development, digital marketing, business research, digital copy writing, digital photo editing, customer support, and human resources.

With every year technology keeps advancing, and businesses always have to keep updating their systems every now and then to the continually changing market. This is important to achieve high quality and quick results. So, this year, outsourcing is likely to evolve into more critical areas with very particular, high-end demands. Businesses that are looking for new solutions to gain flexibility and reap the advantages of cutting-edge tech are likely to consider outsourcing.

Automation in outsourcing

According to a 2019 Deloitte survey, cloud and automation are the new wave of disruptive outsourcing. Digital technologies are making it possible for businesses to generate tons of data from customers. Whether your business small, medium or big, you will need similar technologies to store and back up your customer files, which an IT outsourcing partner can provide. Cloud technology allows businesses to access a wide range of functionalities with ease. Automation provides fast and accurate functionality at lower cost.

The use of artificial intelligence (AI) and other advanced technologies to automate processes is on the rise. According to experts, 40% of jobs in the US may be automated by the 2030s.

The Deloitte survey highlights three trends:

  • When done right, outsourcing offers businesses a competitive advantage
  • A rising number of companies are adopting cloud solutions and automated processes
  • Using these disruptive solutions pose challenges that haven’t been solved yet

While these technologies enable a much better way of implementing business tasks, they also present complicated issues like data security – a primary concern for all businesses. Along with data security, other common concerns when outsourcing include performance compliance with regulations and threat to intellectual property. But 83% of enterprises agree that automation will gain more significance in the coming decade, while 80% believe the same about AI. Moreover, businesses are expected to take strategic approaches in 2020 and outsourcing to a reliable vendor will ensure safety of data and compliance to industry standards.

Outsourcing to a Professional Service Provider

Outsourcing businesses are now providing customized solutions to meet client needs. Businesses that can successfully identify flexible service providers and engage them in value-creating arrangements will enjoy an advantage in 2020. Due to the rising demand for exceptional services and distinct solutions, changes in outsourcing are expected to occur this year are as follows:

  • Vendors will be judged on the basis of the outcomes
  • Businesses will share more risks with service providers
  • Strategy-based functions will be outsourced more
  • Data security will the most important determining factor when choosing an outsourcing vendor
  • Client-centric approaches will gain even more significant standing when making outsourcing decisions

In business organizations, there are many activities that can be outsourced such as data entry, document scanning, document conversion etc. Reliable business process outsourcing companies can ensure high quality output and confidentiality of data. Such companies also offer customized services at affordable rates and the right partner will prove to be an asset to your business in the long run.

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