Today, outsourcing is a proven solution to navigate the labor market, reduce risk, maintain productivity, and meet various challenges.
The latest outsourcing trends focus on enabling businesses to adapt faster, manage resources more efficiently, and maximize productivity. Here are some outsourcing trends that you should be aware of in 2023.
A growing market for cloud computing
Demand for cloud computing keeps increasing as data storage requirements increase. Businesses of all sizes are flocking to the cloud due to its processing power, flexibility, and scalability. As of 2022, 60% of all corporate data will be stored in the cloud, according to Statista.
The use of cloud services simplifies the outsourcing process for businesses. Among the main outsourcing instruments are cloud-based technologies, which are flexible and expandable. The cloud allows for sharing information, as it is always available online.
The cloud computing market is experiencing explosive growth due to pandemic-related disruptions and emerging technologies. According to MarketsAndMarkets, Fortune, Business Insights, and Grand View Research, its size is between $250.04 billion and $445.3 billion.
It will grow at a CAGR of 15.7% to 17.9% by 2026-8, reaching $792 billion to $947.3 billion. According to other studies, it will surpass $1 trillion by 2030. This trend will continue in 2023, as this technology will benefit the sector.
Automating internal and external processes and control over robots is possible through Robotic Process Automation (RPA). In RPA, artificial intelligence (AI) performs routine, time-consuming tasks, freeing humans to work on more complex tasks. The advantages of RPA include increased speed and efficiency, cost savings, improved accuracy, and scalability.
Robotic process automation (RPA) drives innovation in business process outsourcing (BPO) by automating processes, optimizing workloads, and elevating services.
As companies realized they could save money by automating repetitive tasks and allowing only critical jobs to be handled by humans, the demand for RPA increased.
Outsourcing companies are expected to continue implementing RPA and automation, which will bring significant benefits soon.
AI and Chatbots
Some customer support tasks are automated and sped up using AI and chatbots by BPO providers. Clients can use chatbots as personal assistants whenever they need help with various tasks.
Partnerships for strategic growth
Partnerships have become increasingly important in the outsourcing industry in recent years. Consequently, skills are valued more than cost-cutting by companies.
Outsourcing companies build global teams to ensure seamless collaboration, and this trend is expected to increase in 2022.
Shortly and in the future, the agile, highly responsive way of cooperating is likely of more excellent value.
Outsourcing companies with outsourced staff increasingly seek long-term collaboration and strategic partnerships as long as one vendor meets their needs.
A growing market for BPO
In addition to enhancing flexibility and adaptability, business processing outsourcing reduces operating costs and allows companies to focus on core competencies, among other advantages. More organizations are outsourcing some of their business functions because of these benefits.
In April 2022, the global BPO market reached $245.9 billion in 2021 and will grow by 9.1% from 2022 to 2030.
The main market drivers are increasing efficiency and business agility, decreasing operating costs, and emphasizing core competencies.
Secure and robust cyberinfrastructure
Digitization makes BPOs more vulnerable to cyberattacks, so cybersecurity plays an increasingly important role. Regarding security threats, data security is one of the items on the agenda.
Since companies trust their data to a third party, outsourcing poses some risks, making cybersecurity one of their top concerns.
Data security has become a trend and a necessity because it has become the most valuable resource. It is essential to choose a reputable company, to ensure data and outsourcing process security.
Deloitte reported that 64% of businesses plan to invest in security capabilities to combat security threats and ensure the reliability of their infrastructure.
Strengthening cyber security will help you earn customers' trust and feel more confident in the market during cyber attacks.
Outsourcing providers are stepping up their cybersecurity efforts to protect themselves and their clients.
Most outsourcing companies follow multiple levels of security, such as multi-factor authentication and GDPR compliance, to prevent security breaches.
Increase in flexibility, agility, and adaptability
As a result of the pandemic, the workplace has changed dramatically. More and more companies are replacing traditional office-based jobs with flexible, remote ones.
Businesses had to restructure and rapidly adapt to transition into a remote work mode and only realized all the available benefits and opportunities afterward.
A remote work environment allows companies to hire the best talent from around the globe; technology and cloud infrastructure make it possible to execute workflows anytime and anywhere.
Globally, remote work remains a trend in 2023 despite the pandemic slowdown.
A digital era has brought with it developed technologies, software, and applications, outsourcing with its flexibility and lack of geographical borders, access to a wide range of specialists and narrow specialists, short-term collaboration within one project or even just one task, and long-term collaboration.
Outsourcing continues to develop and grow as it adapts to the challenges of the present.
In almost every industry, outsourcing is used to complete important projects. BPO providers were forced to become agile, flexible, and adaptable to meet high demand.
Navigating the volatile landscape with lockdowns, highly frustrated customers, labor shortages, and travel restrictions incredibly stressed BPO companies.
Those who failed to adapt failed altogether.
Businesses must follow the latest outsourcing trends to adapt fast, manage resources efficiently, and optimize productivity.
In 2023, they will focus on remote services, flexible contracts, access to the latest technologies, and speeding up time to market.
Ensuring business continuity
Traditionally, Business Continuity Plans (BCPs) are required for investment firms, but only some have experienced a crisis or dislocation that completely disrupted operations.
Undoubtedly, the pandemic highlighted the benefits of outsourcing regarding business continuity.
Outsourcing supports business continuity planning and can help firms fulfill their fiduciary responsibilities to clients. Here are a few key benefits of outsourcing for business continuity:
- Preventing a disaster from compromising a firm's technology infrastructure, data, and operations
- Connecting remote workers to core systems securely from anywhere
- Increasing personnel depth and expertise to minimize disruptions caused by turnover and critical person risk
- Implementing a business continuity plan that complies with regulatory requirements
The practice of outsourcing is changing as clients seek shorter contracts with fewer or one provider instead of dealing with multiple providers in the past; this ensures stable BPO services and avoids fluctuations or disruptions caused by switching providers.
Sourcing Top Specialist Talent
In 2023, attention to outsourcing services will be turned towards locating niche talent - those who can perform jobs that few other professionals can.
Businesses' options are limited when specialist talent is in short supply in their area; however, exploring the abundance of niche talent worldwide makes sense when the global talent pool opens up to them.
As technology continues to advance, there's an increase in the need for more specialist talent. With AI taking great strides, there's likely to be an uptick in tech-focused outsourcing.
With the right working-from-home monitoring software, you can hire talented overseas workers and get factual data regarding their productivity levels.
Maintaining Business Continuity
Business continuity is maintaining relationships with the same companies, suppliers, and service providers. The advantage of doing this is knowing what to expect from the market and minimizing the change volume within your organization.
When you constantly change your business working arrangements, you risk losing productivity, making it much harder to predict productivity and other metrics you need to succeed.
In 2023, many businesses will focus on cultivating strong working relationships with a few outsourcing companies in favor of the constant churn and unpredictability of juggling new partnerships.
Especially in light of the turmoil of the past few years in business, with pandemics and growing talks of recession, it's worth having business partners you can trust in the long term.
The Need for Advanced Technology
As technology advances at breakneck speed, it's likely that in 2023 there'll be a trend toward less traditional outsourcing services.
For example, machine learning and automation could play a massive role in the coming years as companies look to grow more innovative and efficient with the assistance of technology.
Cloud computing is another area many companies will look to for managing the heavy burden of storing and accessing online data and resources.
A Focus on Flexibility
Flexibility is a trait that many companies are already prioritizing - more and more businesses emphasize agile processes and the need to be adaptable to navigate and overcome ever-changing obstacles.
2023 will mark a further honing in on this focus on flexibility, as many businesses are now considering alternate work models such as the 4-day workweek.
As a result, there are gaps to fill, services to maintain, and customers to be served when teams spend more time OOO.
Companies look to mitigate against disaster by outsourcing and refining their collaboration infrastructure and general workflows.
Surveillance software can be a valuable aid for building a flexibility-first work dynamic, as you can onboard new hires with different hours while tracking productivity and output.
Almost all industries use outsourcing to complete important projects. The digital age has brought about the development of technologies, software, and apps, outsourcing with its flexibility and no geographical boundaries, access to a large pool of specialists as well as narrow specialists, short-term collaboration within one project and even one task, and long-term collaboration that is appealing to a growing number of people.
The outsourcing industry continues to grow and develop, adapting to the present challenges.
There is a fast-paced change in the outsourcing market today as it adapts to global challenges. The latest outsourcing trends help companies adapt faster, manage resources more effectively, and optimize productivity.
Businesses must keep up with the fast-paced outsourcing industry to remain competitive. Your business will be affected by these trends both now and in the future.
What criteria do you employ to choose the perfect outsourcing partner? If you need help finding the right outsourcing partner, don't hesitate to drop us a line here!