Last Update March 21st, 2023
As you know, Outsourcing is an ever growing industry.
An article published by Deloitte, states that 31% of IT services have been outsourced and will continue to grow in future.
Same is it with healthcare sector and finance sector. They have seen growth of 36% and 30% respectively. HR sector is not left left behind with 32%.
Outsourcing has revolutionized the way business is done in almost all sectors.
It was a gradual process that evolved with time and as per the latest requirement of the industry.
The basis of outsourcing business is to accelerate the pace of one’s business and increase its efficiency.
Considering the dynamism of today’s complex business operation, outsourcing is certainly a blessing for the business community as a whole.
According to the latest estimate, around 43% of the manufacturing industry outsources their work from time to time.
The year 2023 will see a further rise in outsourcing trends worldwide.
Especially, the businesses and industries relating to innovation, technology, social responsibility and data security will see massive growth in outsourcing.
Outsourcing Statistics for Global Market Size
(in billion U.S. dollars)*
The Year 2023 Will Be Promising for Outsourcing Industry
With 2022 set to bid adieu, we are now ready to welcome 2023. Interestingly, outsourcing industry is only likely to grow manifold. The latest statistics have indicated 63% of the outsourcing consultants expect their clients marketing to increase dramatically in 2019 and in 2020 as well.
Now, the entire outsourcing business is likely to grow via the use of centralized technology. Some newer aspects of technology and IoT such as AI and automated chat bots are also likely to be unilaterally introduced in more outsourcing businesses
Putting things into perspective, the latest survey report published on computer economics has claimed that 65% of the firms that already outsourced their business operations in the past would outsource more in the coming days.
It clearly shows the entrepreneurs immense faith and reliability on outsourcing.
Outsourcing Trends In 2023
- AI-powered automation: Integration of artificial intelligence and machine learning technologies to streamline processes, reduce costs, and enhance service quality.
- Remote workforce's: The shift towards remote work continues to gain momentum, enabling businesses to tap into a diverse and global talent pool.
- Information and Data Security is Still Remains on Top
- Artificial Intelligence and Robotic Process Automation
- Wider Use of Cloud Technology
- Rise in Virtual Employment
- Outsourcing will be a Success Key for the companies
- Digital Transformation of Traditional Communication
- Rise in Freelance and Independent Outsourcing Services
1. Cloud Computing:
The firms will significantly increase their functional capabilities in IT segments and other key process areas with better management of client’s problems and requirements. No doubt, there will be a massive workload for the consultants in the coming months across the globe.
In 2015, Markets predicted that the industry of cloud computing, which is mostly associated with outsourcing would reach a worth of $121 billion. In 2018, the figure is actually expected to reach 200-Billion USD in a short span of time.
The cost-effectiveness and an ability to offer customized solutions to clients will pave the success chart for outsourcing firms. Big IT giants like Amazon, IBM, and Accenture among others are likely to get more competition from other IT service providers.
2. Information and Data Security is Still Remains on Top:
Another thing that is likely to top the thinkers mind is the data safety. Cyber security will surely grab more limelight and thinkers attention in the days to come. Since, these days, many firms outsource their full work to a consultant, so definitely the former expect a higher level of data security from them.
Even a slight data breach could result in a massive loss to the firm while immense profit to rival. Firms need to take the responsibility of them and work towards offering a 128-bit fully encrypted secured server for online office communication.
3. Intelligent Automation and Robotic Process Automation:
It is known as RPA and becoming more popular with each passing year. The automation process ensures enhanced productivity and efficiency at lower cost while retaining maximum quality in the process. These days, several firms use robots and other computer programs to replace humans for repeating work profile.
For example; instead of call center executive, now IVR itself provides basic information to the customers while connecting them to the real call center executive as per his requirements.
Artificial Intelligence (AI) or simply the robotics will rule the roost in the world of technology and outsourcing services. It will lead to supplier margin expansion, large savings for great buyers, and enhance revenue generation capacity with reduced liability towards staff as well.
4. Wider Use of Cloud Technology:
The cloud technology is likely to become the path bearer for the outsourcing. With more and more businesses are moving to cloud this year, their working efficiency will improve more. Also, it will give further impetus to these firms to deliver innovative products and services to customers depending on the latest market trends.
Overall, outsourcing is a winsome strategy for a firm. According to Whitelane Study, 89% of clients who have outsourced their works claimed to be satisfied by the services provided by the outsourced agents.
5. Higher Efficiency and Competence:
The outsourcing industry is now inching towards automating process utilizing the latest software and other computer programs in the process. These technical tools will simplify the tech support for IoT enabled services and also resolve consumers’ problems in no time.
6. Industrial insecurity adding Woes:
With several countries are likely to witness a change in their political leadership, outsourcing seems to be an apt way to stay safe from the pendulum of political whims and fancies. Increase in corporate taxation, more funds towards employee welfare and high salaries adversely affect a company.
Outsourcing provides a caution to such firms by undertaking its accounting and other important office works. It reduces the firm’s overall administrative and operation cost while enhancing the company’s return on investment.
7. Rise in Freelance and Independent Outsourcing Services:
Now, several firms work from remote locations while rendering outsourcing services to clients. In the upcoming year, there will be a rise in freelance and independent outsourcing agency that will pertain to company’s general works through remote operation. However, it will be larger depending on the internet, online algorithm and other advanced tools.
8. Hi-Tech Call Centers:
Another interesting development is the imminent downfall of call centers. As more and more firms are now hiring intelligent assistants and chat bots to resolve customers’ queries. However, contact centers will not go down all at once.
In fact, a newer type of call centers providing IT-enabled services to its clients on time with round the clock availability online will rule the roost. Using chatbots and virtual agents is always beneficial as they could easily tackle a lot of customers at the same time without disconnecting anyone else.
9. Digital Transformation of Traditional Communication:
Technology has changed the way of traditional communication effectively. Companies are adopting online services, social media marketing, email promotion, and mobile marketing greatly.
Several companies are now leveraging printing service strategies in initiatives that aim at providing best services to customers.
On an average, the statistics revealed by Hubspot clearly mentioned that 68% of the companies would now outsource their SEO services for improved visibility and lead generation capacity of the firm along with website development and mouth publicity. Better the quality of these things, higher will be the firm’s visibility.
10. Outsourcing will be a Success Key for Firms:
The 2016 global outsourcing survey by Deloitte revealed that clients now expect enhanced and specialized services from outsourced consultants. More and more business catering to different fields are now opting for outsourcing to offer improved and far better value-added services to clients.
11. Rise in Virtual Employment:
The latest augment in technology, and software has now made it possible for the staffs and employees to work as employees with a firm. The availability of project management tools and other efficacious programming has made the process of real-time monitoring quite simple and easy. The upcoming outsourcing trends 2018 will certainly see a steep rise in virtual agents.
No doubt, the prospect of offshore outsourcing is very bright in the coming days. Apart from enhancing the firm’s overall efficiency, outsourcing also reduces the operational expenditures of recurring nature, saves the company owner from labor troubles and also augments productivity and flexibility in approach in toto.
Conclusion
Although, several firms have already started initiating partnerships with consultants and outsourced agents for their business requirement yet the debate, whether a firm should move to that route or not still grabs lots of eyeballs.
It will definitely determine the long-lasting success of outsourcing. As a word of caution, considering the dynamic and ever-demanding economic environment around us, outsourcing would be the prudent and complete solution to stay away from the frequent business complications and woes.
Also, with tightening business contests among the outsourcing agencies, some massive improvement in outsourcing business is expected by early next year. Most of these firms will try their best to fulfill the expectations of their clients leaving no scope for any complaint about feedback.
Recently, outsourcing firms have started resolving customer’s problems through the complete solution package that look into resolving all aspects of business solutions.
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About - Outsourcing Insight
Outsourcing Insight was founded by professionals from the Banking, Insurance and Sales and Marketing sectors. Our mission is to offer high-quality outsourcing services, at reasonable costs. For More information visit us at https://www.outsourcinginsight.com/ or follow us on google plus.