Postpandemic Outsourcing Trends for CEOs
This means that the number of opportunities for companies using outsourcing services will grow, while agencies providing performers will increasingly have to find ways to get ahead of the competition. Hourly pay and short-term contracts can minimize the cost to companies of finding new staffing opportunities and expertise. All employees working remotely will be able to receive a decent wage, thanks to hourly contracts, where their earnings will be directly linked to the quality of their work and performance.
By 2028, the global data analytics outsourcing market will grow at a 34% rate and be worth $60.3 million. Outsourcing statistics have announced a significant growth of the outsourced customer care services industry in the next couple of years. For now, more than 50% of all companies employ third-party customer support representatives to improve customer experience. Apparently, outsourcing reliable customer support agents retains more clients.
Are You Ready to Harness the Power of Disruptive Outsourcing?
In the modern age of AI and technology, a lot of businesses are moving towards automating their systems. It makes perfect sense, as you can outsource some roles that may have once had to be manual– including data entry and order processing– and these can be greatly helped by technology. Only larger companies tend to have their own cybersecurity employees, so it is not uncommon to outsource to others. In this case, it is a chance to tap into other peoples’ expertise more than to save money. Services can range from consultancy on the best practices for your security to fully running your cybersecurity and protecting you from attacks. For example, a design company offering graphics may wish to start to offer web design services, but they don’t necessarily have to take on employees or structure their business in a way that adds a web design department.
While data security was always prioritized for the outsourcing industry, the coming years will see greater enforcement in the form of better compliance with the laws of client-residing countries. Cyber insurance is one of its facets, a sector that is projected to grow to $20.4 billion by 2025. According to statistics by Grand View Research, the market size for global outsourcing solutions will reach $405.6 billion by 2027.
Talent, IT, and new ways to outsource
The outsourcing firm tends to change from recruit single suppliers to multiple suppliers. Moreover, the outsourcing firm tended to produce a white label product to reduce the cost further and maximize the profit. The outsourcing firm also intends to construct a joint venture partnership with the supplier to allow the supplier to join the decision-making process and bear the cost together. Welborn [49] also proposed using a specific assessment tool to help managers and researchers to identified outsourcing risks. Welborn suggested using Failure Mode Effects Analysis (FMEA) to identify outsourcing risk since FMEA is used for risk management. FMEA was evolved from Failure Mode, Effects and Criticality Analysis (FMECA).
Undoubtedly, the remote work culture is a rapidly expanding phenomenon, making businesses consider outsourcing IT services to handle the escalating demand. The global pandemic COVID-19 and the Russian-Ukraine War 2022 have left many businesses in the lurch, demonstrating that we live in an era of uncertainty and ongoing progress. So, when the brick-and-mortar businesses worldwide effectively shut down in 2020 due to the global lockdown, the only ray of shine companies had to keep their services running was to quickly adopt digital transformation. Operational Risk and its cost now are turning into a common obstacle for the outsourcing firm executives who preferred the service automation technology. After all, nearly half of the executives in [59]‘s study found that the existing business structure is not compatible with service automation technology.
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Outsourcing is one way a growing brand can avoid the mistake of expanding its team too quickly. With the pandemic likely to persist well into 2021 despite the recent launch of coronavirus vaccines, businesses are realizing the necessity to revamp their sourcing strategies. Building on the past year’s responses, companies are adapting their outsourcing strategies to get a bigger bang for the buck. IT outsourcing has a lot of benefits, and there are means of fixing the issues of it; thus, outsourcing becomes a perfect business model. No matter how many functions a business model covers, it will always have some drawbacks. At the same time, the technologies you can offer to your clients with outsourcing have no limits.
Cloud computing outsourcing allows the firm to enjoy flexibility at the level of allocating resources. The firm is buying the resource based on real-time demand instead of pre-purchased hardware and software. The charming part of such flexibility is that the firm does not need to pay additional costs for idle digital storage space [61]. Process automation is the robot using robotic process automation to automate the digital and physical task. The machine simulates humans to input and output information from multiple information technology systems.
Improving customer experience and satisfaction
Benefit from the information technology rapidly developing, the operational risks keep decreasing. However, lowering the operational risks required to transform massive information outside of the outsourcing firm will significantly increase information leakage’s strategic risk [37]. By prioritizing trends in outsourcing these key factors, outsourced partnerships can achieve long-term success and drive sustainable growth for both the BPO provider and their clients. A significant concern for 2023 is the impact of emerging technologies such as blockchain and artificial intelligence on privacy and data security.
- Helping clients meet their business challenges begins with an in-depth understanding of the industries in which they work.
- On the other hand, loss of confidential information is the risk of transferring to a new system which indicated this risk tie to information leakage.
- At the same time, the technologies you can offer to your clients with outsourcing have no limits.
- Additionally, outsourcing reduces the number of positions needed to fill in-house, helping to ease the hiring burden.
- Building on [33, 34, 35], Asatiani et al. [36] ran a regression based on a rich data set of 337 companies.
Additionally, a Deloitte study reported that creating an outsourcing contract like an SLA can help increase transparency. An SLA can give your business a clearer idea about the quality of the outsourced work and help enterprises to hold the outsourcing provider accountable. Hen choosing the vendor or outsourcing partner, business continuity will be the top priority. In addition to the usual factors in assessing an IT outsourcing company, businesses are also looking at their ability to deliver from home with complete data security. Over 77% of leaders experienced regular cybersecurity attacks since March 2020. And as they scaled their digital transformation initiatives, the threats escalated.
interesting outsourcing trends from 2022 to watch in 2023
There are many other examples, as people look to “BPO” or “Business Process Outsourcing” and employ other companies to do tasks that would otherwise be done by your team. This could be something as simple as data entry, or as complex as handling the whole business payroll. With the additional support of a globally outsourced team, your team is freed to take up more tasks. These top outsourcing trends in 2021 hint of, hopefully, a continuous positive uptrend for the rest of the year, carrying on from an equally optimistic market outlook from 2020.
Stephen King serves as President & CEO of GrowthForce, a leading outsourced accounting and bookkeeping service provider for businesses. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients.
Trends and discussion
However, considering the technology evolution in such countries and to mitigate risks, companies are now looking for talent within their region. The COVID-19 pandemic ushered in a digital revolution with a majority of the businesses undertaking five years’ worth of digital transformation within a few months. However, with the increased shift to digital, exposure to cyber-attacks also increased. A survey by Syntax revealed that most IT leaders and decision-makers are dissatisfied with their current security tools and practices. Out of the total 500 decision-makers surveyed, 83% plan to move their security teams from in-house to a managed service provider (MSP).
This means that the number of opportunities for companies using outsourcing services will grow, while agencies providing performers will increasingly have to find ways to get ahead of the competition. Hourly pay and short-term contracts can minimize the cost to companies of finding new staffing opportunities and expertise. All employees working remotely will be able…