For all the havoc that 2020 wreaked on the world (major understatement), it did have a silver lining, particularly for the outsourcing industry.
With so many businesses struggling to stay afloat amidst lockdowns all over the world, cost efficiency became paramount. Social distancing requirements also effectively forced many companies to adopt a work from home (WFH) model. Both of these factors pretty much accelerated the growth of the outsourcing industry over the past year.
Yet with vaccines providing a light at the end of the tunnel, what’s in store for the industry? Will this upward trend hold?
In a nutshell, yes. Here are some trend forecasts that prove why:
1. Large organisations and businesses will continue to outsource their business processes to third-party providers.
Currently, at least 85% of IT leaders with budgets of at least USD250 million are increasingly reliant on outsourcing. This is likely to continue as flexible labour rules and regulations become the norm.
2. More than 35% of small businesses are currently doing the same.
According to a 2019 Clutch survey, 64% of these company’s executives rely on an outsourced partner for software application development. Over 50% of them outsource their organisation’s application and software maintenance to IT outsourcing specialists.
3. The major motivations for outsourcing IT functions are still cost efficiency and increased business value.
At least 48% of global business service outsourcing survey respondents reinvest the savings into the business. 20%, meanwhile, focus on technology upgrades.
4. Added business value and productive outcomes are coming into greater focus over price when it comes to outsourcing.
However, cost is no longer the sole driving force behind most companies deciding to outsource. Instead, a growing number are focusing on the value-added services associated with outsourcing packages.
Then there’s how outsourcing tends to facilitate progress and innovation in companies. The use of emerging technologies in the process has clearly enabled such.
5. Businesses continue to outsource technical responsibilities to third parties to gain crucial, expert guidance on such matters.
Both startup businesses and small-medium enterprises look to outsourcing for areas outside their founders’ expertise. These include IT services, accounting and bookkeeping functions, and digital marketing responsibilities.
6. Chief Information Officers (CIOs) and C-suite executives consider data center investments and IT infrastructure outsourcing essential to organizational growth in the digital age.
Disruptive outsourcing solutions provide many IT companies with a key competitive advantage, especially if they are among the first to utilise them. Cloud adoption is especially popular these days.
On the other hand, outsourcing IT services and co-location are also fast becoming attractive options. These provide the two-prong benefits of meeting capacity requirements and optimising IT functions. Furthermore, they don’t come with the high capital costs of in-house operations.
7. Cloud-managed service providers are facing diverse and numerous growth opportunities.
There is a huge demand for outsourcing teams and cloud-managed service providers. Navigating complex cloud applications and infrastructure has made this necessary.
The continued increase in IT spending could also mean that worldwide market revenue in this industry could reach USD3.9 trillion by this year.
8. Executives value data privacy and cybersecurity when outsourcing.
78% of organisations currently report investing heavily in increased data and security protocols. This is just as well, considering how data breach and cybersecurity losses will add up to USD6 trillion globally by 2021.
It’s worth noting that although India is a top outsourcing country, its data security isn’t ideal. As of this writing, it’s the third LEAST cybersafe country for outsourcing, after Russia and China.
9. The global market for outsourcing is likely to increase to US$105.5 billion before 2025.
2014 was a banner year for outsourcing revenues. They peaked at USD104.6 billion then, with the Americas largely driving the growth.
Australia might be facing a big shortage of digital workers by 2025. Hence, outsourcing emerges as an effective way to address the gap.
10. The Philippines will consistently be a global leader in business process outsourcing.
While India topped 2020’s list of top outsourcing countries, the Philippines isn’t too far behind. This Southeast Asian country also dominates the outsourcing market in the Asia-Pacific region.
Its high English fluency levels, compatibility with Western culture, and comparatively high data security make it an attractive choice. The ability of top Filipino remote talent to deliver high-quality customer service is another plus. At the very least, this gives them the edge over automated services.
Looking to get ahead of the curve and incorporate outsourcing your key business processes to top Filipino remote talent? Remote Staff has got you covered.
Thanks to more than ten years of recruiting and onboarding Filipino remote talents for various Australian businesses, Remote Staff can help your business get off to the best possible start. Our hard-earned expertise and constant support will also ensure a smooth and long-lasting working relationship for both parties involved.