Business Process Outsourcing was valued at $92.5 billion in 2019. This was a rise of 6.9 billion from the previous year. Since 2015 when its value dipped, Business process optimization has been rising. There has been the emergence of new players like the Philippines, who are offering BPO services. This has strengthened the belief that outsourcing is a promising venture within the various business owners. Be it in IT, manufacturing, or a small company, different businesses rely on outsourcing to get their work done. Startups fail because of premature scaling. Having noted that, their founders today will outsource repetitive processes so that they can focus on product or services processes. This has led to the growth and emergence of new trends in BPO year after year. In this post, we will look at the business outsourcing trends.
Business Process Outsourcing Trends To Watch Out For
The COVID-19 pandemic sped up the rate of adoption for various industries in 2020. Because of multiple reasons, we expect most businesses to outsource business processes.
The business process outsourcing trends will most likely reflect on the effects of the pandemic on a business. This will be heavily evidenced by how industries will outsource various processes. Below are the Business Process outsourcing trends that are expected to dominate in the coming years.
Business Process Outsourcing Companies Will Set New Boundaries
Remote working has been proved to be a viable working possibility. This is likely to benefit the BPOs a lot. To begin with, large corporations will heavily rely on process outsourcing. In addition, outsourcing will enable them to hire employees who have more experience from across the globe or country. The pandemic has brought up new normal and opened new boundaries for BPO companies. Today, they can hire employees from any part of the world, unlike previously, where they were limited to hiring locally.
There has been a reduction in the overall cost of hiring and training the employees. When a company subcontracts, the subcontracted company is liable for employees’ safety and travels. Such cost-saving is expected to ensure that the subcontracting company experiences some cost benefits. We expect this to make outsourcing of business processes more attractive.
A Key Differentiator Will Be Compliance With Remote Working
At the beginning of the year 2020, the fear of the coronavirus was minuscule. However, by March the same year, many people had died and millions infected. As the global economy got back on track, various new strains of the more infectious viruses than the initial one started cropping up. This further caused the businesses to facilitate remote working. Today, different companies still work remotely despite the existence of vaccines. In the meantime, the leaders in the BPO industry have been pushing for various reforms. For instance, governments from Singapore, India, and Italy have changed the norms of data sharing. It has eased the facilitation of remote working within various organizations. Today BPO companies boast of offering services that are robust while ensuring compliance to remote working. Therefore, businesses and other organizations prefer them.
Increased Business Agility
Managers and CEOs learned essential business lessons in 2020. Today they know the power of working with smaller teams. Many organizations having laid off their workforce, the benefactors are likely to be the outsourcing agencies.
Businesses outsource skill-specific and repetitive processes. Therefore, the companies will probably prefer working only with critical stakeholders. Today many companies find it easier to trust BPOs, especially implementing various compliances like the ISO family. In addition, the Business Process outsourcing companies have taken up measures to ensure data safety, which has increased confidence in outsourcing. Because the pandemic rendered the workplaces useless and led to the adoption of remote working, today, every person can understand the importance of a strong BCP and a small working team. Although a business may prefer smaller working teams, they cannot function with fewer employees. This is where process outsourcing comes as a solution.
Adoption Of Cloud Computing
Cloud computing refers to the use of remote interconnected networks for managing, storing, and processing data. This technology helps the BPO service provider gain more quality control, increase production speed, and reduce various costs. We expect that 90% of the enterprise workloads will shift to the cloud. Leveraging on the cloud will help the BPO agencies ensure continuity and cost reduction. Cloud computing ensures universal access, instant computing support, and access to the system if required. BPOs also take advantage of cloud computing services to reduce the processing time for data-intensive business processes. This saves them the cost of purchasing high-end technologies. This enhances the workflow of processing the data as well as reduces the turnaround time.
Leveraging On Automation
Various industries like the hotel industry, insurance, and product management now realize the importance of data. They are applying the data to improve their marketing strategies, understand the new trend in business and enhance the customer experience. This has made it necessary for companies to look for new ways of data analysis. When data is well organized and error-free, it can be crucial in accelerating the growth of a business.
Maintaining the data daily can be tiresome. Therefore, outsourcing data entry and processing services has become an emerging trend. Various BPO companies like Oworkers have been at the forefront in delivering quality data entry, analysis, processing, and presentation to the subcontracting companies. They use automated mechanisms for the above operations on the subcontracting company’s data. With automation, there is operational efficiency and effectiveness. Automation also enhances digital transformation.
Using Artificial Intelligence And Machine Learning
This is another sector that will be immensely applied in various BPOs. Being an advanced technology, the business process outsourcing agencies train their workers to use multiple aspects in a business context. Machine learning will have many applications like sentiment analysis and pattern recognition which subcontracting companies can apply to understand their customers better.
There will be many other upcoming trends in BPOs as they try to respond to various natural occurrences like the COVID-19 pandemic. BPO agencies will be under immense pressure to enhance data security if they offer remote work to their employees. These changes will help both the subcontracting and the subcontracted companies to adapt to changing economics and nature appropriately. The bridge of increased focus on competence while reducing costs on the skills that are not core to the business will be closed by BPOs adopting new trends.
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