6 Trends in Outsourcing in 2021
Outsourcing, a resilient industry despite crises, offers unique advantages and challenges. As the landscape evolves, here's what businesses need to watch for.
Outsourcing has both pros and cons. It reduces labor costs and allows companies to focus on core competencies, improving competitive advantages. Yet, it involves relinquishing direct control over certain business functions to a third party, posing potential risks such as confidentiality breaches or management issues.
The Disruption in Outsourcing
Current disruptions in outsourcing might alter future trends. The question is: will the trends align with expectations?
1. Rise of Remote Work
The pandemic has elevated remote work, with employees increasingly working from home. For small businesses, outsourcing presents an opportunity to enhance efficiency and boost profitability. Companies will likely partner with outsourcing firms equipped for work-from-home setups.
2. Automation's Evolution
Automation is reshaping industries. Recognized for its potential in the outsourcing sector, Robotic Process Automation (RPA) is ensuring tasks are executed efficiently. As automation continues to impact sectors like finance and customer service, the employment landscape will transform – not diminish.
3. Cloud Computing: The Future
Cloud computing aids in reducing operational expenses, quick resource access, improved efficiency, and data security. By leveraging shared server pools and outsourced IT personnel, companies can significantly reduce both capital and operational costs.
4. Social Media Outsourcing's Popularity
Businesses are increasingly outsourcing social media for customer engagement. Last year, 82% of B2B firms outsourced content creation. The expertise an agency offers often surpasses that of a singular social media manager.
5. Omnichannel Customer Support
A unified communication strategy across platforms ensures a flawless customer experience. Outsourcing an omnichannel customer support team enhances customer service. By offering diverse, accessible communication avenues, companies can address concerns promptly, boosting customer satisfaction, referrals, and positive reviews. Outsourcing firms, with their technological prowess, can craft a superior omnichannel experience.
6. Small Businesses and Outsourcing
Currently, 80% of US small businesses plan to outsource. The primary benefit? It allows business owners to concentrate on core activities. As the industry evolves, outsourcing companies seek individuals with advanced skills. Employee turnover can be costly, making upskilling a more economical and effective choice than hiring anew.
Outsourcing reduces entry barriers and intensifies competition. While it benefits consumers by fostering competition, it can pose challenges for businesses struggling to adapt. For newcomers to industries, outsourcing can mitigate otherwise prohibitive labor costs.
Written by Niels Siskens