With rising competitiveness in the business world, it is important for businesses to stand out among the competitors. As a business grows, its daily operations keep on increasing. So, to manage these business activities efficiently, some of them can be outsourced to reliable BPO services. This enables businesses to hire skilled and experienced workers who can work towards achieving all the business’ objectives by getting things done faster. In-house staff in the organization can focus more on areas that generate the most value for the business.
According to Statista, in 2019, the global market size of outsourced services was valued at 92.5 billion U.S. dollars, increasing approximately by seven billion U.S. dollars from the previous year. The largest share of global outsourcing revenue was generated in the Americas, at 62 billion U.S. dollars in 2019. As the pandemic broke out in 2020, there was a significant change in certain aspects of our lives and it also modified how businesses operate. More and more companies are now becoming digitized to function remotely and meet the needs of the new normal. Although brick and mortar businesses are still reviving from the losses due to the worldwide lockdown, many are functioning by outsourcing their activities. This change is expected to accelerate the demand for outsourcing business functions in the coming years. According to Businesswire, outsourcing is expected to reach around $397 billion by 2025 at a growth rate of around 4.5%.
So, here are some of the expected outsourcing trends:
- Better Remote Working Efforts: As mentioned earlier, working remotely became a necessity and companies, even the outsourcing industry, expect this trend to continue post the pandemic. According to a survey by U.S-based Enterprise Technology Research (ETR), remote work is effective and it improved the productivity of the employees. However, some companies are encouraging employees to get back to their offices and this practice is vital in the outsourcing industry as they have to follow strict compliances at work.
- Use of Cloud Computing Services: As more businesses are getting digitized, the significance of cloud usage in their operations is also increasing. According to Forbes, around 77 percent of businesses had at least one part of their processes in the cloud in 2018 and with the outbreak of the pandemic this trend has increased. Deloitte statistics show that 90% of their participants saw cloud computing as a huge enabler in their entire outsourcing journey. Cloud-based outsourcing provides better flexibility and scalability to their clients. It also enables better collaboration with their outsourced teams.
- Improved Cyber Security: Cyber security has always been a concern for businesses. With people working remotely, the chances of cyber threat and maintaining privacy of data have become major concerns. In London, 47% of individuals became victims of phishing scams while working from home. Most of these cases are due to human error while at work. Meanwhile, Sweden recorded at least 350 cases of cyberattacks the previous year, a record high from its usual 100-150. Increase in remote working calls for a tighter security system by clients and their service providers.
- Demand for Near Shoring Destination: Even though offshoring business processes is beneficial, some businesses consider this risky due to the pandemic. This is because travel restrictions and impending lockdowns make it difficult for in-person collaboration.
- Use of Social Media: There will be increased use of social media for customer service. According to Statista, in 2020, the global social media penetration rate reached an average of 49 percent and this enabled customers and businesses around the world to stay more connected. Using social media platforms helps businesses to serve their customers online, provide a seamless customer experience and increase their satisfaction.
- Integration of AI: The outsourcing industry is expected to get automated. Majority of the businesses are likely to implement automation. Outsourcing companies are starting to invest in AI to make work more efficient for their clients. Using automation and AI helps to gain a competitive advantage.
Outsourcing is an effective strategy that helps businesses to provide quality work and also stand out among their competitors. Today, outsourcing has become a globally accepted practice that ensures smooth transition of businesses and minimizes risk. Investing in the right professional business process outsourcing company can help businesses improve employee productivity and efficiency.