Despite the local restrictions and limitations in hiring employees, companies were able to hire the best talents outside their location at a fraction of the cost of local teams. With outsourcing, surviving companies were able to ensure business continuity just when they needed it most. They could easily manage the risks and threats that come with running an operation.

New platforms and mechanisms have sprung up to connect businesses with investors and donors – think crowdfunding, initial coin offerings , tokenization and special purpose acquisition companies . Many of these new methods are driven by the decentralized finance movement, in which financial services like borrowing and trading take place in a peer-to-peer network, via a public decentralized blockchain network. ● This report will help stakeholders to understand competitors better and gain more insights to strengthen their position in their businesses. The competitive landscape section includes the market share and rank , competitor ecosystem, new product development, expansion, and acquisition.

This might include cyber-security, cloud migrations, data management, and secure digital infrastructure. Outsourcing not only impacts operations, costs and productivity, but it also affects your employees. Outsourcing can be a great resource for helping to avoid employee burnout, but the way you plan to use outsourcing needs to be communicated clearly. As the “great resignation” surges on, remote and hybrid workplaces become increasingly popular, and automation with improving technologies takes increasing hold, I think the outsourcing industry is likely to continue expanding. Gone are the days of outsourcing being a “cost center.” Companies outsourced for decades mainly to cut costs and free up their time and effort.

Report

With the additional support of a globally outsourced team, your team is freed to take up more tasks. On the verge ofdisruptive outsourcingand Robotic Process Automation , companies are turning to virtual outsourcing solutions. The prominence of titles like “Chief Globalization Officer” and “Strategic Services Manager” clearly highlights this shift. Companies are seeking strategic advantages based on outsourcing alliances, operational efficiency being the driving force behind this. Continues to keep its head above water as global industries endure the impact of the pandemic.

This study bestows production and revenue data by type, and during the historical period and forecast period. In this, a third-party provider takes care of a number of processes, ranging from recruitment, human resources, payroll tax, to overall management supervision. Apart from the engagement costs in such an approach, you only need to sacrifice time to train new offshore employees.

• Smaller companies are expected to use outsourcing more, reducing operating inefficiencies, reducing costs, and improving their core business strategies.
• These outsourcers, in turn, have hired talented people specializing in those specific in-demand tasks.
• Continues to keep its head above water as global industries endure the impact of the pandemic.
• It is not the turnkey outsourcing that companies could apply in the past.
• However, the way businesses got their work done then, , is very different from how companies outsource today.
• The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 2,300+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

Luckily, BPOs saw this as an opportunity to advance with their game even pre-pandemic. Increasing number of businesses have even intended to support remote work and balance it with in-house working in 2019. Cost-saving is one of the main reasons businesses decided to outsource during the pandemic.

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The report offers qualitative insights on the latest trends, business developments, demand patterns, and an overview of the regional market, including the current and projected CAGR status, and updates on leading manufacturers. In 2019, Clutch found that 37% of small businesses already outsourced at least one business function, and Statista reported the total market value of the global outsourcing market to be worth $92.5 billion. More recently, Deloitte found that around 90% of companies see cloud computing as a vital aspect of outsourcing. Business process outsourcing is a company that specializes in a subset of outsourcing, which includes contracting operations and responsibilities for specific business or organizational processes to third-party service providers.

It is not the turnkey outsourcing that companies could apply in the past. The report also covers new developments in the Business Process Outsourcing market, providing insights for businesses looking to sell into the industry, invest in it, or provide a business valuation or consulting services. The outsourcing industry will become more collaborative and yet competitive. In particular, clients will look for IT outsourcing vendors who provide customer-centricity and are progressing with new technologies.

Cloud and robotic process automation are table stakes.It’s no surprise to see cloud and RPA solutions becoming a core component of most new outsourcing strategies and transactions. In fact, as they become more proven and familiar, they’re less of a transformative driver than two years ago and are now effectively table stakes for all transformations. Organizations are looking forward to the next major technology catalyst to power the evolution of their business. The outsourcing industry is undergoing a digitally disruptive change in 2020.

In the recent past, outsourcing has brought in a lot of businesses opportunities for countries like India, China, The Philippines and Mexico to name a few. India is perhaps the biggest beneficiary of the outsourcing boom, and over the years, has created a niche for itself in IT and ITES outsourcing. A large majority of IT companies prefer to choose India, when it comes to outsourcing due to the presence multi-talented pool of affordable resources, timeliness, and reliability. Our analysis of the deal landscape, reinforced with the experiences of major outsourcing providers and buyers, highlights four critical elements to next-gen outsourcing deals. Over the five years from 2016 to 2020, digital services grew from 30 to 70 percent of TCV, and the number of new deals with a digital component has steadily increased to almost 50 percent .

BPO service providers ensure maximum efficiency, security, speed, flexibility, and accessibility with effective cloud integration. New analysis by the McKinsey Technology Council highlights the development, possible uses, and industry effects of advanced technologies. • Clients’ portfolios of service providers are becoming more complicated and require management comparable to looking after a portfolio of stocks. 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. There is a new kind of outsourcing practice called outcome-based outsourcing as companies look for service integrators instead of service providers.

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The biggest cost saving factor is that the RPO provider hold the accountability for searching the candidates, this saves a lot of cost of advertising. The amount of time invested by the company in the process of hiring, at times, crosses the deadlines by a wide margin. This issue is generally faced by companies which conduct mass recruitments.

The outsourcing industry will transform this year with a major emphasis on building value networks with outsourcing companies. Outsourcing will continue to survive in the future, as it provides companies the access to specialized skills and save on time and effort, which can be channeled into the other core business ventures. Despite such perceived negative aspects, outsourcing has only continued to grow. In fact, outsourcing is now being embraced by organizations of all sizes and domains. From startups to large enterprises, outsourcing continues to be a tool of choice to gain competitive advantage in the business scenario.

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The provider brought in a proprietary human–machine operating engine that optimizes people, technology, data, and intelligence. Through that tool, the provider redesigned and standardized hundreds of HR and finance processes, implementing automation and analytics along the way. The new capabilities were first rolled out in Europe and expanded to North America, Australia, and New Zealand over the next year.

How Outsourcing Started – A Brief Recap

Global companies who wanted to leverage the cost benefits of outsourcing started outsourcing high-end functions like IT services, healthcare BPO and research services to reliable companies. Today outsourcing is no longer a buzzword only for the low cost labor. It has become a key business strategy for both small and large business enterprises who believe in devoting 100% to their key business operations and outsourcing the rest to specialized vendors. A large industrial manufacturer wanted to partner with a BPM provider to transform its legacy processes and business-support functions using next-generation platforms and solutions. It engaged a global BPM player to help redesign its shared-services operations through a combination of business-process reengineering, robotic and point automation, and lean principles.

Four key outsourcing trends

Outsourcing helped small businesses cope with the challenges brought by the lockdowns and provided stable business continuity for companies. Invoices go through 3 -way matching, a review process, and a multi-level approval process. Vendor invoices are received in multiple physical and electronic formats. Deloitte’s report,shows that cost reduction has remained the outsourcing trends primary objective of outsourcing in past years. Below, we lay out these considerations for all 14 technology trends, so that you can better understand them and consider how they relate to your organization. At the bottom of this page, you can download detailed profiles of all these trends or download a customized PDF containing profiles of the trends you choose.

This will assist the users to be attentive and make informed decisions related to business. Specialists have also laid their focus on the upcoming business prospects. This report also outlines the market trends of each segment and consumer behaviors impacting the Outsourcing market and what implications these may have on the industry’s future. This report can help to understand the relevant market and consumer trends that are driving the Outsourcing market. While data security was always prioritized for the outsourcing industry, the coming years will see greater enforcement in the form of better compliance with the laws of client-residing countries. Cyber insurance is one of its facets, a sector that is projected to grow to$20.4 billionby 2025.

Outsourcing party to keep track of the progress as well as to clarify what targets they are engaged to achieve for the hired professional. As the data from the GSA report reveals, 83% of respondents believe RPA will be of greater significance over the next decade. Therefore, we will face a growing demand for professional data scientists, big data analysts, and AI experts. Also, AR/VR technologies can boost the sales effects of your product by making it more tangible and realistic. For example, lately, we have developed a VR escape room set for the promotion of the Mr. Mercedes TV series.