How are Outsourcing Trends Shaping the 2020 Market?
Outsourcing has become a new norm and it has reshaped many global industries. Companies are becoming more influential and strategic organizations. This means that the importance of their outsourcing partners has never been greater as well.
Personalization, automation, digital, and data needs are rapidly changing the way companies operate in terms of quality and services. The outsourcing partners need to keep up with these changes and deliver exceptional results.
This is why we have top companies offering premium products or services globally that have outstanding outsourcing partners. Their partners are actively involved in their business processes and help them deliver fantastic value to their customers.
Outsourcing is a fully developed industry
Some of the most commonly outsourced processes include customer support, manufacturing, data services, recruitment, accounting, and other technical tasks. Through these services, outsourcing companies have developed a completely new market worth $85.6 billion.
Outsourcing these processes to a third-party allow companies to focus on their core area of expertise and improve efficiency. Apart from improving internal processes, outsourcing also allows companies to reduce their running costs or overhead. This is why over half of small businesses outsource some part of their work.All the outsourced business processes are done off-site, and companies don’t need to use their resources. Usually, outsourcing companies already have an established infrastructure to perform these services on their premises. Around 80% of companies say that they have positive outsourcing relationships with their partners.
Current global outsourcing trends
At the moment, around 37% of small companies outsource at least a single process. Approximately 24% of those companies that outsource do this to boost efficiency. On the other hand, 18% of them have reported that their main goal is to receive essential expertise.
No matter what your goal is, it’s important to find a good outsourcing partner for your business. After all, this is a partnership, and both parties involved need to do their share to make the relationship mutually beneficial.
Most companies are looking for already established outsourcing companies that have experience. On top of that, they are usually looking to hire businesses abroad. The main things to look for in a potential partner are cost-effectiveness and high-quality services.
How is Global Outsourcing Trends Shaping the 2020 Market?
Here are some of the current trends in this global market that are shaping business:
#1: Artificial Intelligence will Continue Redefining Business Processes
Ever since the first robots were released into the workplace, artificial intelligence (AI) has been a disruptive technology. Businesses have been forced to either change their processes or fade into irrelevance. Automation will continue to be a disruptive technology.
Today, we’re seeing AI being integrated on a digital level. As businesses continue to develop processes that make data more accurate, we see AI become even more useful. Data quality has been the strongest barrier that keeps businesses from moving to AI-driven decisions.
Business process outsourcing will be used to help bridge the gap between automation and human interaction.
#2: Social Media will Become a Customer Service Channel
A report released by Salesforce showed that over 50% of customers expect their queries to be responded to instantly. This has been conditioned by Facebook due to requirements that businesses respond to 90% of their messages within 15 minutes to qualify for a “fast responder” badge. This mindset has shifted the focus of customer service to social media.
Therefore, one of the global outsourcing trends will be experienced in hiring human specialists to work with their automated processes to provide a greater level of support across social media. Most of this work will be outsourced since it’s more efficient than delegating in-house teams.
#3: Robotic Process Automation (RPS) Adoption will Continue to Grow
As technology becomes more accessible to businesses, we will start to discover more about how outsourcing trends are shaping the 2020 market. Bots will perform repetitive manual processes, but certain tasks will still require a small level of human interaction. This will bring about a renewal of intelligent automation where humans interact with machine workers to perform labor.
With that in mind, RPA security is going to become a priority because it removes human error from the equation. Business happens so quickly today that the process of protecting sensitive data has become quite complex. It’s completely helpless to human error, so it will be important to automate certain security measures.
#4: SaaS and Cloud Technology Become More Diverse
Cloud technology adoption rates are on the rise, so that means businesses will need to adapt their service delivery models. The biggest concerns with cloud technology have always been security-related. However, cloud technology is quickly becoming more diverse so that businesses can address these security concerns much more rapidly. This has caused the shift in concern to move more toward actually adopting this technology to meet the demands of their critical operations.
When it comes to learning about how outsourcing trends are shaping the 2020 market, we can look at the outsourcing model for cloud delivery. Many providers are now able to offer their services over the cloud. For instance, cloud computing services are being offered by many top-tier outsourcing partners.
#5: Diversification of BPO Services Becomes a Top IT Outsourcing Trend
Outsourcing services have always been found primarily within three industries – information technology, customer service, and accounting. But in the past decade, we’ve seen businesses adopt a more diverse approach to outsourcing. They are looking to delegate as many non-core business tasks to outsourcing providers.
As a result, a newfound emphasis on social media services has been given life. Customers have discovered that they can get the attention of their favorite brands on social media faster than by calling a number.
Therefore, one of the top outsourcing trends for the future is going to be found in outsource providers offering a wider range of services. We fully expect the focus to shift more toward social media, cloud technology, and AI-powered business processes.
Innovation and new ideas will shape outsourcing trends for the future
Business process outsourcing companies will have to provide innovative services and offer new ideas if they want to stay relevant in the future. It’s how these types of businesses will develop further and gain key competitive advantages.
However, even though BPO companies need to make an effort here, it’s not all up to them. The companies outsourcing their services also need to put more trust in their partners and give them the freedom to generate ideas. At the moment, outsourced companies are mostly bound by strict contracts.
How outsourcing trends for the future shaping the 2020 market are affected by the experience economy
The experience economy has opened up many new market opportunities and service innovation. This economy revolves around providing customers with great experience, not products or services. For these reasons, more and more companies are looking to outsource creative services like:
- Cultural services
- Experience creation
- Aesthetic services
Customers want to have a fantastic experience with a company. It has become an essential factor in whether or not customers will be loyal to a particular organization. That’s why businesses are adopting customer-centric approaches that emphasize emotional journeys.
However, most companies don’t have enough time or expertise to deal with these aspects of their work. It’s the main reason they will have to partner up with companies with all the resources necessary to deliver these crucial incentives.
Outsourcing Trends and Statistics for 2020
Outsourcing trends in 2020 would be more advancing which would require certain skills in hands. Let’s follow the skills in demand in the future:
Outsourcing is alive and well. Both sides are getting a lot of benefits from these kinds of business models. It’s a clear sign that this business model isn’t going anywhere. At the same time, the global economy is becoming more and more connected.
Companies are expanding their markets and cooperating with people from all around the world. Global outsourcing trends will continue, and outsourcing will become an increasingly common practice in the future.