Grand View Research estimates that the global market for business process outsourcing will be worth $245.91 billion in 2021. And now according to Straits Research, by 2030, the market for business process outsourcing is expected to be worth USD 513 billion, expanding at a CAGR of 8.5%
Small enterprises used outsourcing employees to overcome the difficulties posed by the lockdowns and to ensure reliable company continuity. The sector kept evolving through the years despite the danger of automation, increasing the value of its services to customers.
The future of outsourcing became more digital and promising as a result. This extensive manual offers a thorough forecast of the outsourcing sector’s future.
How Outsourcing Is Still Useful
The industry’s “demise” remains questionable, according to experts. It is anticipated that non-core and repetitious tasks would soon become irrelevant due to the threat of automation, eliminating the need for outsourcing in the process.
The epidemic demonstrated that outsourcing is a venerable sector with countless opportunities. It filled in the gaps in several areas that businesses previously ignored or glanced over.
Solutions were specifically offered by the sector for the following factors:
—Ensuring ongoing business
—Cost-cutting tool
—Promotion of remote work
—Bridging the talent void
Outsourcing’s Prospects In The Upcoming Years
In fact, companies should prepare for the continued use of outsourcing employees in the future. This is because the new normal forces companies to keep up with technological advancements and the escalating competition in their markets.
According to research, the outsourcing industry would grow by US$40.16 billion through 2025. The need for some of the top outsourced staff services, such as accounting, IT, and human resources, will persist in the coming years.
Additionally, the development of business process as a service (BPaaS) is anticipated to benefit their clients. Thanks to their outsourcing providers, businesses will see an increasing amount of their job reduced and automated.
Trends That Will Impact Outsourcing In The Future
Companies can anticipate several trends that will further define the outsourcing industry’s future as it continues to develop.
1-BPOs Are Using Automation
With the emergence of automation and AI, many predicted the demise of conventional outsourcing. Fortunately, BPOs(Business process outsourcing) recognized this as a chance to up their game even before the outbreak.
According to reports, almost 50% of BPOs continue to use traditional outsourcing methods. But more BPOs are beginning to use robotic process automation (RPA) in their daily operations.
The usage of chatbots, remote tools, and cloud calling services is prevalent in these endeavors.
2-Upskilling of staff
In the upcoming years, automation may eliminate low-level jobs, further devaluing conventional outsourcing. This can have a cascading impact on workers who perform repetitive tasks.
For years, machines rendered repetitious labor useless. From 1990 to 2007, almost 400,000 jobs were lost as a result. Millions of jobs were lost as a result of the pandemic in 2020 alone, with 42% of them expected to be lost forever.
This necessitates that businesses, particularly BPOs, upskill their workforces as much as they can. To adjust to the new standard, some even started educating staff members and switched to online training.
3-The Value Of Client Centeredness
Customer focus is now “in.” Businesses must put up more effort into engaging with their audience base given the rising client expectations.
For instance, since most individuals are unable to leave their homes, e-commerce services have increased throughout the epidemic. Even now, customers anticipate that companies will have social media pages and websites if they want to be found.
Overall, businesses have built their brands by always putting their clients first.
4-Increased Interest In Outsourcing Places
These days, outsourcing is not simply done in India and the Philippines. Clients searching for alternate places to outsource have steadily started to choose regions like South Africa, Vietnam, and Puerto Rico.
Companies can now choose to outsource locally (onshoring), regionally (nearshoring), or even in a nation thousands of kilometers away from them (offshoring).
These emerging places have even produced top BPO firms, which may make outsourcing simpler for prospective consumers.
5-Demand for Cloud-Based Technology
According to a Nemertes Research report, 59% of contact centers worldwide already let a portion of their personnel work from home before the pandemic.
When lockdowns were implemented, though, that percentage increased to 74.1%. After the limitations were relaxed, 70.7% of these contact centers still permitted some form of professional employment outsourcing.
6-The Two Main Factors In Outsourcing Are Price And Value
The day when outsourcing employees was a “cost center” has long since passed. For many years, businesses outsourced staff primarily to reduce costs and free up their time and labor.
Though they are unaware of it, the longer they outsource, the more their procedures advance, better pleasing their clients.
BPOs began to transform from cost centers to profit centers by enhancing their services as the new normal approached. BPOs increasingly use automation to streamline services and improve task management.
Final Thoughts:
In the past couple of years, Businesses used to send non-core activities to other nations for outsourcing employees. However, thanks to technological improvements, BPO firms are now capable of managing increasingly complex business procedures.
Therefore, if you work in the sector, you should start investing in the necessary technologies for remote work and take into account flexible work schedules to draw in top talent.
