Content
- The Most Important US Outsourcing Statistics (Editor’s Choice)
- Sustainable outsourcing gains prominence
- Future of Business Process Outsourcing (BPO) Market by 2029: Trends and Predictions
- How Outsourcing Practices Are Changing in 2020: an Industry Insight
- Outsourcing trends to expect in the next decade
- Managed Teams
- Which countries outsource the most?
For example, accounting services, billing services, and payroll services, to name just a few. Outsourcing statistics, Eastern European countries like Ukraine, Poland, Belarus, and Romania will give them a run for the top position. Platforms like Upwork and Power Publish are good examples of this outsourcing in action.
Organizations are focusing more on cybersecurity as cyber threats continue to grow. Indeed, 64% of Deloitte respondents cited security capabilities as the primary concern driving the deployment of emerging technologies over the next three years. The fast pace of technology and the rapid expansion of the market results in constant change for companies in the IT Outsourcing Industry to be aware of. In this blog, Savvycom will provide you with the most recent IT Outsourcing Trends in 2023 and how they may affect your business processes.
The Most Important US Outsourcing Statistics (Editor’s Choice)
Almost 54% of all companies use third-party support teams to connect with customers. Cloud-based applications are also great for collaborative and real-time work. For instance, you can give revisions or instructions, and your outsourcing partner can go back to them anytime. Continues to keep its head above water as global industries endure the impact of the pandemic. While COVID-19 compels a significant number of companies to shut down, the BPO industry is embracing the new normal. Taking a bionic approach to digital transformation can lead to successful business outcomes.
The technologies have evolved and practices have changed—and this change is constant. Companies will approach service providers as service integrators who will not just complete the project but also share the risks and rewards for a more value-driven delivery. Companies will also benefit from such a contract as it will allow them to get an in-depth assessment of the possibility of any future outsourcing relations. Companies are becoming more aware of the risks and instead of creating an output-based contract, they will now be forming outcome-based contracts.
Sustainable outsourcing gains prominence
Additionally, Southern Europe has the largest share of business process outsourcing. Every enterprise must re-evaluate the capabilities that it can develop in-house with the talent it has and determine which ones to procure from service providers. By building capabilities in-house, companies can reduce the risk of their transformation projects stalling and turn to service providers in areas where they suffer from talent gaps. In fact, some companies are trying to develop capabilities in tandem with service providers—a trend that is likely to grow in the years to come. Outsourcing, or hiring a company to perform a specific set of tasks for another company, gains popularity worldwide. As more organizations seek to lower costs and improve productivity, the outsourcing industry offers more and better services to meet customers’ ever-more demanding needs.
- The automation process ensures enhanced productivity and efficiency at lower cost while retaining maximum quality in the process.
- Agility in business operations became the leading reason why businesses outsourced in recent times but owing to the pandemic, cost reduction once again became the driving force for outsourcing.
- Instead, we are talking about sustainability in general—practices that satisfy present needs without compromising with future needs.
- You can often more easily execute diversity initiatives and meet corporate goals when you utilize outsourced service providers from a different geographic area.
- Making a decision requires an ecosystem management view beyond traditional vendor management.
- Many companies, especially startups, questioned how far outsourcing could take them.
- This will lead to more efficiency and cost savings, as companies can outsource more of their financial services and processes to fintech providers.
Figuring out the latest trends in any industry sector is one of the main perks of analyzing statistics. With such information, you can see what areas of remote work are going to grow in demand. When it comes to the size of the business process outsourcing market , it is expected to reach $405.6 it outsourcing trends billion by 2027, growing at a CAGR of 8.0%. The trend toward automation is accelerating, as outsourcing statistics like this one show. Robotic process automation is often the first step a company can make toward digital labor, and most financial companies are already implementing it.
Future of Business Process Outsourcing (BPO) Market by 2029: Trends and Predictions
That’s because the year 2023 is shaping up to be a game-changer for AI. By then, AI technology will be widely used in all industries, from healthcare to transportation. We will see a major shift in the way businesses operate, with AI-driven automation and outsourcing trends taking over many of the tasks currently done by humans. Fintech is one of the most rapidly growing industries of the 21st century, and it’s projected to reach new heights in the next few years. By 2023, we can expect to see a major shift in the way financial services are outsourced, with greater digitisation and automation leading the way. Fintech will continue to revolutionize the finance industry, providing customers with more convenient, user-friendly services and more secure financial transactions.
This implies that companies now require more IT Outsourcing Providers to automate processes. It’s hard to tell whether sending jobs overseas has more pros or cons, but companies undoubtedly gain more profit because of it. By examining and comparing data, we’ve been able to identify why companies in the US decide to use outsourcing as a business strategy.
What we had expected to see by the end of 2020, we’ll be seeing the progress this year. After some in-depth research of the latest studies, here is my analysis of how outsourcing practices are changing in 2021. The Fourth Industrial Revolution and embracing disruptive technologies in outsourcing are becoming more critical than ever. They need to ensure continuity while also thinking about sustainable practices focused on the socially and environmentally-conscious users. QCon London Adopt the right emerging trends to solve your complex engineering challenges.
Yearly, different research institutions list the top countries acquiring outsourced services. They usually base this on aspects such as workforce population, literacy rate, and access to the latest technology. The US has the most percentage of outsourced jobs in the world, with almost 68% of companies delegating their services.
How Outsourcing Practices Are Changing in 2020: an Industry Insight
Smart operators are starting to recognise the benefits of outsourcing which offers a genuine solution to many business problems. With this, outsourcing partners now share in the decision-making process while giving support services for non-core business functions. Some companies were able to cope with the crisis because of the portfolio sourcing strategies that they had adopted before the pandemic. (See Exhibit 1.) They had been distributing the services they need to offshore and onshore providers, as well as investing in building in-house capabilities. In fact, 67% focused on developing in-house capabilities, and 66% concentrated on increasing insourcing levels. These companies tasted relatively more success during the crisis than other respondents.
And this need for connection has given rise to authenticity as a business trend in its own right. We want brands to care about issues and stand for more than just turning a profit. Shift to critical business projects and reallocating resources to projects that are high priority. India and China’s IT export was around $150 billion in 2017 and has grown exponentially in the last two years. But countries like Ukraine, Poland, Romania, and Belarus, are gearing up to take their spot. Motivating both the parties, co-sourcing will help improve the IT outcome achieved from outsourcing.
Outsourcing trends to expect in the next decade
● The report offers strategic recommendations for essential business segments based on market forecasts. QCon London brings together the world’s most innovative senior software engineers across multiple domains to share their real-world implementation of emerging trends and practices. It highlighted the many gaps in their preparedness for disruptive times. Many businesses came to a standstill while others saw their operations, sales, and business relations decreasing.
Managed Teams
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. Especially, the businesses and industries relating to innovation, technology, social responsibility and data security will see massive growth in outsourcing. You can often more easily execute diversity initiatives and meet corporate goals when you utilize outsourced service providers from a different geographic area.
Which countries outsource the most?
Business process outsourcing spending will increase to $212 billion in 2023, a 19% increase over 2019. As reported by Deloitte and a news article in the Arabian Gazette, OSS gained popularity in the Middle East, particularly in Dubai, and is projected to increase to $6.8 billion by 2023. Today’s consumers are seeking a more meaningful connection with brands.
A single enterprise might also look to hire remote developers from different service providers in order to improve their outcome. In 2021, while some of the changes of the past year are reflecting in current outsourcing practices, there are some new trends visible in the industry. No one had expected the sudden challenges, surprises, and disruptions that 2020 had in store for businesses across all industry verticals.
Commonly-outsourced administrative activities include telephone services, bookkeeping, event management, payroll management, and more. Deloitte’s Global Survey 2021 stated that 88% of the surveyed companies said cost reduction was now their main outsourcing objective. Before the pandemic, companies were moving from cost reduction to prioritizing quality and scalability but that changed with the pandemic. Customer experience is the key brand differentiator in 2022 and will continue to give businesses a competitive edge in the coming year. Nearshore outsourcing involves hiring a third party from a neighboring country to complete a business task. On the other hand, offshore outsourcing is outsourcing to a faraway country, usually in a different time zone.
Want to know the cost of outsourcing your business processes?
Increase the speed of some tasks that take a lot of time and where the company may need more resources. There are already examples of this trend, such as smart homes, wearable tech, and connected cars, but in the next five years, we can expect to see the IoT grow exponentially. Statista), and this trend is expected to continue to increase in 2023. As a result, the Indian workforce is cheaper than in other parts of the world, and it’s possible to find inexpensive but quality employees. It is only natural that these companies will continue with this practice because of the benefits they get from outsourcing work to remote workers.