COVID-19 has massively redefined the way we work. While it has created an uncertain future for many industries, it has also led to the emergence of more resilient business solutions. One of the critical sectors that has seen significant and rapid change is the outsourcing industry.
Despite the many challenges, outsourcing continues to stay strong, with the BPO market size expected to reach US$405.6 billion by 2027. It is consistently evolving into a more strategic and collaborative model. As we move into 2021, new outsourcing practices and methods are yet to come. Below are five key outsourcing trends that businesses need to keep an eye on.
#1 Increase in Outsourcing Budget
For companies seeking to outsource in 2021, quality would be the main driving force in decision-making instead of quantity. Companies will mainly evaluate potential partners based on the strategic value they bring to the business rather than simply looking at the price. Hence, to access the best talent, companies will not shy away from increasing their outsourcing budgets.
#2 Demand for Knowledge Process Outsourcing (KPO)
Decades ago, outsourcing only involved offshoring low-risk functions such as data entry and customer service. As companies realized the magnitude of its cost-saving benefits, they started outsourcing core services such as financial consultancy, research and development, marketing, and lead generation.
In 2021, it is expected that outsourcing of critical business functions will continue to grow. As various industries become more sophisticated, KPO will play a valuable role in companies looking to expand or fill skill gaps while keeping the cost low.
#3 Digital Transformations
This pandemic has forced many businesses to digitalize their operations. This will continue onto 2021, with businesses increasing their spend to stay competitive in the digital-first era.
Whether it is launching a digital product, scaling their online presence, or shifting to automation and Artificial Intelligence (AI), they focus on agile transformation to create a more seamless customer experience and outpace the competition.
#4 Cultivation of Remote Work Environment
COVID-19 has changed the belief that a traditional office environment is necessary to develop trusting relationship in the workplace. Remote work culture is gradually being ingrained within companies. This will continue onto 2021 as companies hedge risks by diversifying their delivery locations.
#5 Advanced Security
As companies shift to automation and work-from-home setup, security threats are getting increasingly complex and prevalent. Thus, businesses will expect more advanced and customized security solutions from their outsourcing partners. Testing a provider’s ability to deliver from home offices with the desired productivity and security will be the norm.
The Outlook
With the global changes 2020 has brought, outsourcing trends for 2021 will imply further improvements and flexibility. New digital tools will contribute to better services, wider reach, and heightened productivity. To breeze through these rapid developments, however, one must choose the best outsourcing partner.
If you are looking to explore outsourcing possibilities in the Philippines, ask Maquiraya and Associates, Inc. We can work with you on the ground and get you in touch with the right people to iron out your strategy and achieve seamless business continuity.