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Outsourcing is the practice of hiring a third party to provide, manage or handle a business function that could otherwise be performed internally. For example, outsourcing includes contracting outside accounting firms, attorneys or marketing companies to handle a business’s bookkeeping and accounting, legal department or marketing. 60% of organizations are either considering or planning to assess their outsourcing strategies in the next 12 months.

Though unknowingly, the longer they outsource, the more their processes improve, satisfying their customers better. Automation could eradicate low-level work in the following years, making traditional outsourced services more irrelevant. Reports in 2016 stated that around 50% of BPOs still practice traditional outsourcing. However, more BPOs have started and planned to integrate robotic process automation (RPA) into their operations.

Related outsourcing resources

Although many companies will be itching to get staff back into the office as soon as possible, workers will continue to push for the flexible work environments that they’ve become accustomed to during the pandemic. Having the flexibility to work remotely is a major demand of the millions of people looking for their next outsourcing opportunity. But it’s also something How to Hire an ICO Developer that most current workers want to keep, even when offices reopen in their area. 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. The savings and flexibility that the BPO market provides are attracting new players all the time.

• It means this approach will help clients select a suitable vendor for their project and makes it one of the outsourcing software development trends.
• Slow response times and security risks might be those things that scare you from outsourcing your project to a third party.
• Let’s set up some time to talk about your unique needs and work together toward a successful future.
• Cultural incompatibility risk is often overlooked by business owners when selecting a 3rd party service provider, which is a leading cause of failed collaborations.
• Since the onset of the pandemic, workers across many industries around the world have been reevaluating their relationship with work.

Starting in 2020 and only further accelerating this year, the remote workforce is now a staple of our society. What was originally born out of necessity is now a learning opportunity for businesses to reassess what optimization and efficiency look like for them. Download the full report to explore detailed findings and analysis, insights from executives, and takeaways on how you can enhance your sourcing model to unlock immediate and long-term business value. Platforms like Upwork and Power Publish are good examples of this outsourcing in action.

Steps to Consider before Outsourcing Digital Marketing

By creating an outsourcing strategy now and pairing it with a human capital management plan to see your employees through the changes, you’ll be well prepared to super-charge your profits and productivity. Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing. HR outsourcing trends include entrusting HR activities like compliance, payroll, benefits administration, and HR assistance to a reputable firm. BPO is another subset of outsourcing that involves hiring third-party vendors to handle business-related operations.

It will include everything, from system integration to software development and beyond. As an increasing number of organizations are migrating their IT network to the cloud, the demand for outsourcing IT company that provides cybersecurity and data privacy services will increase. A reputed IT company uses robust security measures to secure users’ data and IT infrastructure from the malicious attempts of cybercriminals. They comply with industry specific regulations such as GDPR and CCPA to actively monitor and secure sensitive information.

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Top BPO companies have even emerged from these rising locations, which can make it easier for future clients to outsource. Much of these efforts are seen with the use of chatbots, remote tools, and cloud calling services. With physical stores getting closed down due to the lockdowns, startups and small companies could not keep up with their expenses and labor costs while they’re losing profit. A Small Business Administration (SBA) report showed that around 25% of small businesses affected by disasters failed to reopen.

With the new normal approaching, BPOs started to transition from a cost center to a profit center by adding value to their services. BPOs now practice better workload management by streamlining services with the help of automation. Customer centricity is now “in.” The increasing customer demands require businesses to add extra efforts in connecting with their audience base.

The Future Of Outsourcing—And How To Outsource The Right Way

Despite the local restrictions and limitations in hiring employees, companies were able to hire the best talents outside their location at a fraction of the cost of local teams. The pandemic made companies realize that outsourcing is the best way to keep their expenses low while efficiently running their business. Not to mention they can easily plug and play with their services and scale them easier whenever they need it.

These services help manage spending and maintain transparency from the late seed to series A stages. However, organizations must carefully plan their moves and avoid making mistakes when outsourcing to ensure a better relationship with their teams. When a company outsources, they now get to keep up with their competition and adapt to the changes in the times better.

Ensuring business continuity

Bringing in Sykes, a full life cycle provider of CX management services, multichannel demand generation, and digital transformation around the globe, makes Sitel Group a top-three CX leader in the world. The idea of sourcing gig work talent to manage business functions could be a major win for startups and small businesses in the coming year as well. Entrepreneurs that have never considered the idea of offshoring will now be able to take advantage of the managed services ecosystem and reap the benefits of outsourcing, even if only on a short-term basis. As outsourcers react to the labor market’s demands for more remote work options, clients will have to as well.

Compared to onshore outsourcing, nearshore outsourcing may offer slightly lower operational costs, while offshoring can result in saving sometimes even twice more. Within a short period of time (at inVerita, up to 30 days), you can set up remote teams with experience in various tech stacks and domains. Customer experience has become a critical differentiator for businesses in various industries. Outsourcing customer support and service functions to specialized providers with expertise in omnichannel communication, chatbots, and personalized interactions is gaining traction. This trend helps companies deliver exceptional customer experiences while also managing costs effectively. The future of outsourcing will witness an increase in the outsourcing of smaller projects.

Cost savings will continue to be a major advantage of outsourcing

This is since the new normal obliges businesses to keep up with digital transformations and the increasing competition within their industries. A lot of adjustments had to be done when companies were forced to work remotely during the pandemic. Outsourcing made it easier for them to implement remote work and adjust to a digital environment as a way to provide uninterrupted service to their customers.

Back in 2016, a study conducted by Deloitte revealed that 72% of respondents from the business sector were already outsourcing IT functions, with over a quarter planning to increase their outsourcing efforts. Notably, 70% of surveyed companies were going to outsource more in the upcoming years, and a significant 35% of them had plans for substantial increases. In this regard, 84% of service providers expect the outsourcing industry to grow, and 37% believe it will do so remarkably.

Not only have technologies evolved, but ways of working also transformed and borders expanded. We’ve talked to industry experts and analyzed trends in hopes of understanding what to expect over the coming year. Another area of the C-suite that is getting the outsourced treatment is the chief marketing officer. The danger of straining the budget through excessive hiring is very real, particularly for companies in the startup or rapid growth stages. Outsourcing is one way a growing brand can avoid the mistake of expanding its team too quickly.

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