Outsourcing refers to a process whereby an organization refers a part or a total branch of its work to another individual or company to either increase process efficiency for that particular component and/or to cut the cost.
In recent times it has been noticed that processes like a customer and after sale service, marketing and design are the main elements that have been outsourced by companies worldwide to increase efficiency and reduce the cost per dollar on all these processes.
2018 is going to be no different as companies worldwide seek to increase the share of processes that have been outsourced to different companies which specialize in the process that is being outsourced to them.
The main rationale apart from efficiency comes from increasing the pace at which the business is being conducted by any organization. A closer look at global statistics reveals that the IT sector devolves about a third of its work in 2017 to various companies that specialize in that very process, they are followed by healthcare, finance and human resource which also give and take devolve about a third of their processes to various other companies. The manufacturing sector is one where about a fourth of the total market size devolves its work to various companies that outsource.
Considering the global market share contraction for the BPO sector in the year 2015 and 2016, the outsourcing market recovered exponentially in 2017 and is expected to reach the highest point in the 2015-2020 period in the months to come. From about a hundred billion dollars in 2017 the market is expected to grow by 40% to reach about 140 billion dollars.
The main reason for this growth is the confidence that companies are placing in the outsourcing industry and the reliability that these companies offer, according to an estimate about 65 percent of the companies that already outsource will likely outsource more of their processes in 2018. The increasing use of AI the introduction of IoT and chatbots is what paints a favorable future for the outsourcing industry.
Let’s have a closer look at all the trends that will contribute to increasing the overall market share of the outsourcing industry in this year. The most notable ones have already been mentioned above, apart from that information and data security and impartiality, an increase in cloud computing and increasing use of cloud technology, an increase in the resources to choose from and a digitization of the whole communication process can be listed as contributing factors to the predicted boom in the outsourcing market. Sub-branches of digitization include robotic process as well as intelligent automation.
The first and foremost contributor to positive BPO trends is the rise in cloud-based technologies, this sector is expected to hike up to about 200 billion dollars in 2018 from 131 billion in 2015 which signifies its importance to the outsourcing world. Cloud computing will enable companies to better understand and solve client concerns using the data stored on various cloud-based servers, this will result in higher efficiency and lower costs per unit as well as assisting higher client satisfaction levels.
Data and information security pose a greater threat to large organizations and a search for 128-bit security systems from various companies would be a top priority for firms. This will enable various security systems providers to benefit from the increased demand in 2018.
This isn’t all, since technology is transforming the traditional ways of operations in many fields, the bpo service industry is also getting influenced by it. The new trend that has been looked forward to in the year 2018 is the change in traditional communication. Companies and organizations are switching to the option of email promotion, mobile marketing, digital marketing, social media and other online services for the enhancement in the functions of bpo service industry. The reason that a huge number of people are now members of social media platforms and also users of cell phones, the reliance on these medium is significantly multiplying and can be utilized as better marketing tools.
In other cases, it has also been seen that companies are outsourcing the SEO services to bpo industry, as its giving a great boost to companies in terms of marketing and search engine optimization. Hubspot recently revealed that 68% of the companies outsource their SEO services to gain a better position on search engines and improve the lead generation capacity of their companies beyond the publicity through word of mouth or mere websites. The year 2018 will focus on improving the quality of these marketing tactics and means to give a rise to the business companies regularly receive in conventional circumstances.
Getting work done with a higher quality score becomes cardinal during the era of automated micromanagement, this leads to robotic process automation(RPA) and enables companies to standardize processes and mold them as and when the need arises. Outsourcing enables companies to achieve all of the above at a lower cost per dollar. The prime example of RPS is known as the IVR (integrated voice recording). All these practical uses of AI technology will continue to grow in 2018.
Another contributing factor to the expected rise in the market size of the outsourcing industry revolves around the availability of higher quality resources both as individuals and organizations, these highly specialized entities mean that there can be greater reliability and less unpredictability for the companies seeking an outsourcing agent. The prime example of high-quality outsourcing agencies is the extremely high tech call centers that offer customer support, human resource, and marketing/sales services. These call centers are facing competition from the newly introduced chatbots and intelligent assistants, the call centers which are offering round the clock services will definitely help to boost the market share for the outsourcing sector.
Just a few years ago, the BPO industry was majorly recognized for call centres, customer services and IT industry. Whereas, the canvas of service of bpo industry has widened in the recent few years. The service providers present in the bpo industry are expanding their horizon of expertise and taking many other fields in the fold as well. Now the industry is offering solutions in graphic designing, HR management, accounts, law and many others. It’s the development in communications that is making the incorporation of other fields in the bpo industry possible. The gap between the customer and the industry is now gradually bridging and the contact between different factions of the industry is getting materialized. This is definitely an addition to the positive growth of the bpo industry.
Other emerging outsourcing trends will also contribute to positive outsourcing trends in 2018, these include 5g preparation, where the outsourcing industries will continue to prosper in becoming cardinal to providing people with the idea and managing after sale client support for people who would be on these networks, 5g will shake up the whole dynamic of how people use the internet.
Whilst concluding it should be noted that the introduction of software-based solutions by various companies has resulted in the value of an outsourcing agency for a large business, outsourcing offers the most prudent and reliable solution for all large organizations. This enables them to provide customers with unmatched user experience at a very low cost. Just this core function indicates favorably towards the future of outsourcing in the years to come.