6 Trends in Outsourcing in 2021
Outsourcing is one of the most resilient industries amidst the crisis. It has its advantages and disadvantages too.Outsourcing reduces labor and overhead costs and focused more on the company’s core competencies and thus improving its competitive advantages. While Outsourcing on the other hand also has its own disadvantages, it involves handing over direct control over a business function or process to a third party. As such, it comes with certain risks. For example, when outsourcing, you may experience problems with confidentiality and security or management difficulties.
Somehow, Outsourcing has experienced disruptions that may have changed the expected trends in the future.
Would the outsourcing trends remain as close as to what is expected?
“6 Outsourcing Trends this year to watch out for”
- INCREASE AND ADVANTAGE IN REMOTE WORK
In times like this, remote work has increase and most employees worked at home five days per week during the outbreak. Outsourcing can also be a fantastic way for small business owners to improve efficiencies and bolster their company’s bottom line.
Many organizations may likely get the services of outsourcing companies that have the capacity, stability, and compliance for work-from-home functions.
- ADOPTION OF ROBOTIC PROCESS AUTOMATION
Automation has already changed the world. The manufacturing sector overhauls have been the most visible for the business sector, but many other areas are being shaped by innovation.
Global businesses recognize RPA’s potentials in outsourcing as the sector relies on advanced technology to process tasks efficiently.Automation continues to revolutionize finance, customer service, and the offshore services world, more people are coming to believe that the future won’t necessarily be worse for employment — it will simply be different.
- INVESTMENT IN CLOUD COMPUTING
Cloud Computing helps organizations to lower operational costs, access resources quickly, increase efficiency, and secure data.
It reduces CapEx and OpEx expenses.One of the main reasons businesses move to the cloud is to decrease costs. By sharing a pool of servers instead of buying and maintaining their own, and by relying on an outsourced IT staff and data facility, companies dramatically decrease capital and operating expenses.
- DEMAND FOR SOCIAL MEDIA SERVICES
Outsourcing social media is in demand as businesses want to leverage social media for customer service and engagement.
82% of B2B organizations outsourced content creation last year.Social Media is also in demand in Outsourcing because of the advantages it has.
Outsourcing social media is that an agency typically has more experience and expertise than just one social media manager.
- CAPACITY FOR OMNICHANNEL EXPERIENCE
A unified communication strategy across channels is essential in providing a seamless experience to customers.
Outsourcing to an omnichannel customer support team you can provide better customer service to your customers. By providing them access to multiple easy options to reach you at any time of the day, you can then handle queries and resolve issues on time.A positive experience will drive an increase in customer satisfaction and most likely lead to referrals and potentially good reviews, which are hugely beneficial for business.
Since outsourcing companies are adept with technology, they will be able to develop tools and resources in establishing an omnichannel experience.
- SURGE IN SMALL BUSINESS CLIENTS AND UPSKILL OF WORKFORCE
The Outsourcing market today shows that startups and small businesses believe that outsourcing can help their companies to improve efficiency and business growth. 80% of small businesses in the US plan to outsource this year.
Also, the biggest benefit of outsourcing is that it frees the small business owner up to concentrate on the core business. Every small business can struggle to find the resources they need to grow. Outsourcing can level the playing field by allowing outside experts to contribute to making your company a success.
On the other hand, the industry keeps on evolving to tailor-fit the needs of existing and potential clients. Thus, outsourcing companies are in need of talents with upgraded skills.
We all know employee turnover is expensive. According to Gallup, the cost of replacing an individual employee can range from one-half to two times the employee's annual salary—and that's a conservative estimate.
Upskilling, or reskilling, is a smaller investment than hiring and training a new worker. As you reskill your employees, you create a more well-rounded, cross-trained workforce, and increase your team’s effectiveness.
SO WHY OUTSOURCED?
- Companies use outsourcing to cut labor costs, including salaries for their personnel, overhead, equipment, and technology.
- Outsourcing is also used by companies to dial down and focus on the core aspects of the business, spinning off the less critical operations to outside organizations.
- On the downside, communication between the company and outside providers can be hard, and security threats can amp up when multiple parties can access sensitive data.
Outsourcing Lowers Barriers to Entry and Increases Competition. While increased competition is encouraged by free markets and generally benefits consumers, it can hurt businesses that can't keep up. Outsourcing allows new entrants to industries where labor would have been too expensive otherwise.