What the Future of the Outsourcing Industry Looks Like
11/8/2021 | By Marella Gimenez
Outsourcing is a lucrative solution for many businesses, especially those that are looking to expand internationally or have been struggling with inconsistent results. Outsourcing can be done from anywhere in the world and through a number of different platforms, so it may be one of the most accessible business solutions out there right now.
There are many factors that have led to the boom of outsourcing. Some of these include technological advancements, affordable communication tools, and a rise in telecommuting - all things that make it easier for consumers to work with remote workers wherever they may be located. Because of this, businesses all over the globe aimed to make the most out of outsourcing, so more services were outsourced. Some of these included high-end work such as information technology services, BPO in healthcare, and research work were some outsource solutions.
In recent years, outsourcing has provided businesses and startups in several industries with a lot of business opportunities. Some of the most boosted countries include China, India, the Philippines, and Mexico. People were provided with work, while companies were given resources and reliability to support their business in keeping up with trends.
What does ‘outsourcing’ really mean?
Outsourcing is appealing to companies because it safeguards their capital, resources, and time towards development. It also ensures that they get the best services at reasonable prices for their business. However, what does outsourcing truly mean?
Outsourcing refers to the act of hiring external help that provides different kinds of solutions and support to different industries. Nowadays, more than half of companies in any industry choose to outsource to cut down on costs. From these support teams, customer experience is improved.
Outsourcing also helped the development of customer support solutions to possibly reach over a hundred million dollars by 2024. However, 2020 presented businesses with the challenge of a pandemic which challenged the outsourcing industry. Countries such as the Philippines took a big hit because of consecutive lockdowns. Thus, it took a few months before operations chose to outsource again.
Why do companies outsource customer support services?
The future lies in outsourcing, so it is almost always used when it comes to customer support solutions. When a company chooses to outsource customer service, the benefits are countless. More than just giving teams the job of answering calls all day, customer support has also grown to follow trends with instant gratification services.
Here are the primary benefits and reasons of outsourcing customer support teams for your company:
- More Flexibility
More than companies cutting down on costs and having sideline support, they are also able to gain flexibility to cater to more clients to support. They also obtain a larger support base as needed, without having to commit to hiring full-time employees.
This kind of flexibility also helps boost development for companies and businesses who experience sudden rises in demand. An industry such as e-commerce can benefit from this, as queues don’t stay too long when there is a large customer care support base.
- Skilled and highly qualified talent pool
Not all people are skilled in speaking the English language. However, in most BPOs that outsource, the hired workforce is highly skilled. Compared to hiring locally, your company can earn more and spend less from outsourced work.
- Cost and time-efficient
Customer service support is one of most in demand jobs out there. This is why strategic companies pay their workers competitive salaries, to maintain customer happiness and satisfaction.
The recruitment and management of workers are sometimes a challenge. All this while trying to process the growth of your business in the industry can take a toll on you.
This is why startups, especially in technology, choose to outsource. Through this, they save up on costs, get more time to run and grow the business, and work on the management of standard operating procedures.
- Increased global coverage 24/7
As time passes, customer expectations rise higher and higher as well. Customers want a faster process and management of their concerns. Thus, 24/7 global coverage is highly essential to your business, particularly in the future.
Since everything nowadays is centered in technology, products and services are often sold online. And since technology never sleeps, your customer service team should always be available as well. If they are not, your customers might go somewhere else.
Unless your business can give 24 hours a day, 7 days a week support, you would need the help of outsourcing. Learn a thing or two from other startups and be more strategic in customer management.
- Safety from Lawsuits
Many high-end companies have dealt with lawsuits from in-house workers. On the other hand, when you outsource, your business would not be liable for legal risks. Instead, the outsourcing provider industry is always the one responsible for this.
- Less problems for management
If you’re working with the right BPO provider, you will gain a professional and reliable HR and management team that would ensure your company’s performance is top-tier. You would also be able to keep up with the trends needed for development.
Instead of focusing on dealing with your workers, you can now relay all concerns such as technology and software on workers who would not disappoint. Now, you can finally focus on your company’s future.
- More concentration
Most companies are not able to focus on the future because of dealing with in-house issues such as employee satisfaction, software issues, and other menial problems. Customer service is often a problem too.
However, through outsourcing your non-core competencies such as customer service and software support with a reliable BPO provider, you can grind for the future.
What the future of the outsourcing industry looks like
If you want to find the best outsourcing partner for the future, you don’t need to worry. Many outsourcing companies are looking to provide better solutions to more clients with advanced security. Here’s a glimpse into what the future of the outsourcing industry might look like:
- On outsourcing high-end processes
There is a large array of outsourced services nowadays. In 2020, businesses started to outsource high-end processes that allowed for more achievements.
Businesses that pursue outsource solutions are now more capable of providing stability and security to their partners. They are at a competitive advantage because of higher output of work.
Staying on top of the market has never looked better because companies are now beginning to advance their work through outsourcing and strategizing the best solutions.
Outsourcing continues to be budget-friendly
The benefits of outsourcing on a company’s budget goes to show how worthwhile it is for many businesses. KMC has reduced costs up to 70% for their clients because outsourcing has allowed for less employment taxes. Companies are also able to save up on cash by not paying for more physical offices and transportation costs.
Business operations also continue to be more agile, leading to cost reduction due to outsourcing. With prices of logistics and materials rising everywhere, outsourcing makes more sense to do.
- Outsourcing is more standardized and strategic today
With outsourcing focusing on the process and the people, change is seen in the global market. Businesses benefit from outsourcing service providers because they contribute to the strategic growth of the company.
Through KMC, staff leasing services provide more area for collaboration between clients and the remote team. This standardized process allows proper overseeing and avoidance of having to deal with the hassle of third party communicators.
- High-end business functions will continue to grow in outsourcing as the future arrives
As another decade comes, outsourcing is expected to grow on the higher, more critical end of business functions. On the other hand, outsourcing of lower end services will keep businesses stable as they find ways to improve BPO models. This would help gain operational resilience and flexibility.
- Business continuity and disaster recovery
Businesses are now concentrating on practicing sustainability in outsourcing to continue with long-term relationships. The pandemic coerced businesses to go back on outsourcing contracts with providers due to lack of trust and uncertainty. But as time moves forward, companies are now looking to create strategic collaborations and networks with reliable outsourcing providers to continue on with their business and its recovery. As businesses grow towards cloud outsourcing; support and development will also heighten.
- Post-pandemic world and brighter horizons for outsourcing
The future of outsourcing is nothing to worry about because of the improvement we have seen in the past years. Outsourcing central business services will continue to improve organizations and lead to technological advancements. Automation also alleviates the hassle of processes and miscommunication by providing digital tools and AI solutions through reliable outsourcing.
The future of outsourcing is bursting with potential. As it continues to grow amidst adversity and diversity, businesses continue to adapt and grow with outsourcing that helps their companies. It will continue to provide hope for businesses in the future, lessen costs, and make work more efficient.