As businesses expand, it may become difficult for business owners to enhance the prospects of the business and focus on the more essential elements of the business all by themselves. This is when outsourcing to a reliable business process outsourcing companies becomes useful. Business process outsourcing is an important business strategy for all organizations. It is the practice of contracting specific work to an external service provider. All businesses that aim at being successful rely on BPO to keep their enterprise running smoothly. It helps to cut down back office cost and also provides innovative ways to increase revenue.
BPO companies are now expanding their service line and developing new business models to match with the latest technological trends like artificial intelligence, big data, cloud computing, machine learning etc. According to an article published by MattsenKumar, the global BPO industry valued at $85.6 billion in 2018, increased to $92.5 billion in 2019. According to Fortunly, the business process outsourcing market size is expected to reach $405.6 billion by 2027.
5 Emerging Trends in Outsourcing for 2021
Robotic Process Automation (RPA): Advanced technologies like AI and RPA can help outsourcing vendors manage huge workloads effectively and improve productivity. According to Deloitte’s 2018 survey, 72 percent of organizations were planning to adopt or had already adopted RPA to enhance their work and efficiency. It also helps businesses stand out among the competitors.
Knowledge Process Outsourcing: This is a type of outsourcing that deals with specialized knowledge and problem solving. It includes services like research and development, data analysis, financial consultancy, and technical analysis. Even though there are many advanced and smart technologies available today, KPO still holds a significant position in outsourcing services. Companies that are looking for highly skilled professionals can use KPO to fulfill their requirements at minimal cost.
Upskilling Staff: As technology is growing, it is important enhance the skills of the staffs also. When automation takes over repetitive tasks, the focus of the staffs should be on specialized knowledge. This gives an opportunity for outsourcing staff to increase and widen the level of services they offer. Social media, niche specifications are some of the areas that require outsourcing.
Social Media as Customer Service: This is an increasing trend in outsourcing. With 49 percent global penetration rate, social media apps and platforms reach millions of people globally. Taking customer service to social media refers to interaction with clients to create a seamless customer experience and also increase customer satisfaction.
Cloud Computing: Cloud computing offers computing services including servers, storage database, networking, software, intelligence etc. over the Internet. Outsourcing providers now offer their IT infrastructure for storage, server, networking requirements etc.
Guidelines for Businesses Considering Outsourcing
- Clear Objectives: Businesses will need outsourced labor. But before outsourcing, identify all your requirements and decide what needs to be outsourced. This will help both the business and outsourcing provider to set realistic expectations, and the outsourced service will align with the business’ objectives.
- Proper Data Security and Regulatory Terms: Maintaining the confidentiality of business data should be given priority. Understand all the data security and regulatory requirements and make sure that the service provider adheres to the standards. This will minimize the chances of data breach and ensure compliance with all applicable laws and regulations.
- Strong Management Relations: The success of outsourcing depends upon how the company and its outsourcing service provider work together. With proper management, both parties can build mutual respect and commitment to the agreed-upon terms. Good relationship between the provider and company will boost the growth of the business.
- Good Communication: Clear communication between the company and the service provider is also essential to achieve the business goals. It helps to minimize errors and ensure timely delivery of the project.
With every year, the need for the solutions offered by a business process outsourcing company is increasing drastically. With efficient employees, BPO helps businesses in cost reduction, productivity growth and innovative capabilities. BPO is the key strategy for surviving in today’s highly competitive business environment.
