The Business Process Outsourcing Trend: How BPO Benefits Businesses Of All Sizes

Clients need to invest more in building their supplier management capabilities to manage the new normal and achieve maximum value from their service provider ecosystem. Companies have no shortage of options at their disposal to optimize facilities management expenditures. Outsourcing is a well-established strategy that’s on the rise thanks to an influx of vendors, while integrated approaches to facilities management, workplace strategy, and technology all hold promise.

What was originally born out of necessity is now a learning opportunity for businesses to reassess what optimization and efficiency look like for them. To the specialists in 2022, organizations are taking two advantages; adding modern tools to their arsenal and hiring competent employees to deliver superior performance. Companies will explore more outsourcing options to keep their operating costs low, as raw material, fuel, and transportation costs rise. Process and people will continue to drive outsourcing relationships rather than price. Outsourcing statistics, Eastern European countries like Ukraine, Poland, Belarus, and Romania will give them a run for the top position. As the data from the GSA report reveals, 83% of respondents believe RPA will be of greater significance over the next decade.

Prediction #1: The talent war continues

Various data on outsourcing show that this number hasn’t changed since the fourth quarter of 2019. In the third quarter of 2019, 66% of transactions were digital-focused. This will encourage outsourcing companies to create new digital execution strategies, maintain digital systems, and integrate these strategies across various digital platforms. Many of the emerging techs like virtualization and grid computing are also enabling the innovators in the outsourcing industry to utilize the cloud, the standardized IT infrastructure. Robotic process automation, software bots, automation, machine learning, and other disruptive technologies are becoming ubiquitous and taking over the world.

future trends of outsourcing

For example, outsourcing includes contracting outside accounting firms, attorneys or marketing companies to handle a business’s bookkeeping and accounting, legal department or marketing. Automation could eradicate low-level work in the following years, making traditional outsourced services more irrelevant. This could create a domino effect for employees doing repetitive work. Further, the rise of Business Process as a Service is expected to add value to their clients. Businesses will see an increasing number of their workload streamlined and automated thanks to their outsourcing providers. A lot of adjustments had to be done when companies were forced to work remotely during the pandemic.

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Accounts payable is growing increasingly dependent on data analytics and reporting since they may give companies insight into their payment procedures and help them find areas for improvement. Businesses may spot bottlenecks and inefficiencies and decide on their accounts payable strategy by carefully evaluating data such as supplier performance, payment timeliness, and trends in invoice quantities and amounts. Companies must ensure that staying in business and bouncing back from adversity are two key considerations when refining IT sourcing strategies. Businesses have to incorporate new ways of working—particularly working from home, which is becoming a standard operating procedure—into their future plans.

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The world is incrementally but inevitably transitioning to a decentralized outsourced model. In doing so, companies can reduce in-house expenses and benefit from the services of specialized experts. A growing number of companies are realizing that finding, hiring, and retaining software developers is difficult and expensive, especially when demand ebbs and flows throughout a company’s lifecycle. As demand increases, so too do the costs of hiring in-house developers. Xavor Corporation is a leading technology company based in Irvine, California. We are committed to help our clients with reliable software solutions.

future trends of outsourcing

Outsourcing can have both benefits and drawbacks, depending on a variety of factors. The primary benefits include improved productivity, cost savings, time savings and better use of resources. Outsourcing non-core business functions can also allow companies to tap into vast wells of expertise outside of their industry.

Improving business performance, turning risk and compliance into opportunities, developing strategies and enhancing value are at the core of what we do for leading organizations. 60% of organizations are either considering or planning to assess their outsourcing strategies in the next 12 months. That’s a clear sign outsourcing has evolved into a true business transformation solution. Outsourcing in the future will be better thanks to further improvements in the industry. The breakthroughs and trends mentioned above proved that now is a great time to outsource services. Stated that around 50% of BPOs still practice traditional outsourcing.

Global Outsourcing Survey

Digital transformation has become a fast-evolving trend, amid the widespread disruptions brought about by the pandemic. Once focused just on reducing expenses, today’s outsourcing initiatives are likely to help companies do things they previously could not do. Find out how your business can deliver an exceptional 24/7 customer experience, improve conversion rates and convert website traffic into customers.

Much of these efforts are seen with the use of chatbots, remote tools, and cloud calling services. As the most in-demand jobs increased, more non-core work eventually became irrelevant, triggering an increasing gap between the demand and supply for workers. Increasing number of businesses have even intended to support remote work and balance it with in-house working in 2019.

future trends of outsourcing

Entities have distinguished themselves by offering specialized technologies and tools and the relevant professionals to help implement and manage the required technology. Such as cloud collaboration, AI, robotic process automation, and cybersecurity. With the influx of remote work, the expectations of HR are shifting. As more workers begin transitioning from in-office positions to remote work, companies will change to gig models to distribute projects to gig workers. In a more distant future, the implementation of artificial intelligence, or AI, will most likely expand into numerous unexpected areas.

Incorporating advanced tools via outsourcing:

• Outcome-based contracting is still a distant prospect for most clients. Most of our survey participants still utilize traditional models linked it outsourcing trends to outputs or more simplistic models like full-time equivalents . • Data security is still the most cited concern relating to cloud services.

  • As cloud technology expands and advances, data migration, security, and troubleshooting will increase as well.
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  • 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.
  • In a more distant future, the implementation of artificial intelligence, or AI, will most likely expand into numerous unexpected areas.
  • To the specialists in 2022, organizations are taking two advantages; adding modern tools to their arsenal and hiring competent employees to deliver superior performance.

Companies typically follow a progression that begins with outsourcing noncore activities at individual locations . The consolidation, standardization, and bundling of these tasks across facilities over time results in the outsourcing of a comprehensive set of noncore services and management to third parties. Outsourcing, workplace strategies, and technology innovations hold immense potential for companies seeking to reduce costs and improve productivity in facilities management. Hiring help desk workers from a service provider is one of the services that helped establish the IT outsourcing industry.


These tools are understood now to be effective cost-cutting strategies. University of Chicago study, outsourcing contracts based on the old notion that people deliver services using tools will be wholly affected to reflect that people provide services using digital tools. Demonstrative of this catastrophic change in viewpoint are recent findings from Spiceworks’ survey of 700 business technology buyers. The study reveals that today, businesses consider employee security awareness training as the most effective solution for preventing cybersecurity incidents, followed by breach detection systems. The report also forecasts an uptick in IT spending for 2019 due to heightened security concerns and business plans to adopt end-user security awareness education. Outsourcing not only impacts operations, costs and productivity, but it also affects your employees.

Lessons from Our Clients: How to Choose the Right Software Outsourcing Vendor

Both the internal and external teams work together, side-by-side to create value. Together, they share the risks, face issues, and come up with quick solutions. In the IT industry, multi-vendor outsourcing is all about outsourcing different aspects of their IT services to different companies. It will be like getting the IT architecture, microservices, cloud services, AI, ML services, and all other development or designing services from different companies to get the best from all.

And while 76% of respondents expect to slow down some transformation initiatives during the next 24 months, 96% expect to accelerate the execution of some transformation projects. South Africa provided a great example in 2021 as both industry leaders and politicians worked together to accelerate the region’s BPO growth. One of the more telling indicators of this growing trend is the widespread nature of its implementation. Additionally, businesses often don’t dedicate the time required to recruit a new employee to leverage potential growth opportunities. This is where globaloutsourcing providerscan have your outsourced team set up in as little as six to eight weeks. As 2021 comes to a close and a new year begins, all signs point toward a future of digital solutions and remote services.

Swati Sharma, an avid writer by day and an ardent reader by night, is in charge of Content Marketing atClassic Informatics, a global web development company. Owing to her passion for her profession, she loves to stay updated about the current and upcoming trends in the IT industry. Take the case of Ukraine—presently it has over 166,000 software developers and the number is expected to increase to 250,000 by the end of 2020. No wonder we will see the country rising as a bigger competitor for India, China, and other leading countries. Co-sourcing will become the new norm as businesses choose to support each other and share the risks.

The economic recession due to the pandemic caused mass layoffs, and changes in working conditions also forced many people to quit their jobs. Add to this decrease in fresh graduates due to online classes, and it gives businesses a challenge for multiple open positions they have right now. Many people have also sought to start their businesses due to the seemingly insecure nature of their jobs. Experts expect the healthcare, telecommunications, and fintech industries to be top users of IT outsourcing services. Outsourcing is the practice of hiring a third party to provide, manage or handle a business function that could otherwise be performed internally.