More organizations are choosing to outsource business activities, resulting in an outsourcing market expansion. Outsourcing gives companies a competitive advantage by reducing operating costs, enabling staffing flexibility, and saving time.
The global outsourcing market was valued at $92.5 billion in 2019, before the pandemic, by Statista. Additionally, a Grand View Research survey said that the BPO sector (Business Process Outsourcing) alone is worth $245.91 billion in April 2021!
This growing outsourcing industry includes IT (Information Technology), healthcare, accounting, and other sectors. However, outsourcing can be futile if you don’t plan it properly. To develop a successful strategy, you’ll need to be aware of the relevant outsourcing trends.
This article explores a few outsourcing statistics and trends of 2021 that can help you make better outsourcing decisions in 2022. If you would like to go beyond this article to learn more about navigating 2022 and beyond, contact MASA today to gain a headstart with the best outsourcing solution for your business.
Outsourcing in 2022: Top 3 Trends for this Year
Using Modern Technology
Software development, automation, IoT (Internet of Things), and other modern technology develop at a fast rate. It’s difficult to keep up with the latest advancements in technology and as a result, businesses are turning to outsourcing agencies to keep up.
An expert outsourcing agency like MASA excels in technology-driven processes to optimise the workflow, productivity, and output of client companies. As a result, they’re more likely to keep up with the latest developments in technology than an internal staff member.
Here are the most current and trending technologies used in the outsourcing industry:
A. Robotic Process Automation (RPA) Solutions
RPA is the software technology that helps build, deploy, and manage robots to carry out simple tasks.
The demand for RPA is increasing as companies realise they can save money by using robots to perform repetitive tasks.
According to a 2021 Grand View Research, the RPA market size was worth $1.57 billion in 2020 and can grow at a CAGR (Compound Annual Growth Rate) of 32.8% between 2021-2028.
B. Cloud Computing
Cloud outsourcing is essential to access other modern technologies like AI, RPA, and machine learning. It also empowers a company to collect, store, and access its resources on the cloud.
C. Artificial Intelligence and Automation
Business and outsourcing companies use AI for the automation of repetitive tasks, like calculations or replying to messages.
Additionally, AI is helping providers improve customer service. Chatbots or cloud-based IVR (Interactive Voice Response) are examples of widely-used outsourced AI services.
A 2019 Grand View Research survey reported that the AI market would be worth $62.35 billion in 2020 and is predicted to grow at a CAGR of 40.2% from 2021 to 2028.
Emphasising Cost Reduction
Before the pandemic, companies moved from cost reduction to prioritising quality and scalability. The 2018 Deloitte’s Global Outsourcing Survey said that outsourcing companies were willing to spend to expand the business. But this changed during the pandemic.
Deloitte’s Global Survey 2020 stated that 70% of the surveyed companies said cost reduction was their main outsourcing objective. Most surveyed outsourcing companies said that although clients wanted agility, scalability, and technology enablement, the cost of the services was the primary decision-making factor. This trend could continue in 2022 while the world economy recovers from the pandemic.
1. Favoring Nearshore Outsourcing Over Offshore Outsourcing
Nearshore outsourcing involves hiring a third party from a neighboring country to complete a business task. And offshore outsourcing is outsourcing to a faraway country, usually located in a different time zone.
In the post-pandemic world, companies are nearshoring more than in previous years.
In fact, a McKinsey and Company survey in 2020 released that 60% of fashion stakeholders expected a rise in nearshoring.
Similarly, a 2020 report by the Vienna Institute for International Economic Studies summarised that German companies were actively considering nearshoring.
This could be due to the relative comfort companies experience in managing supply chains over a shorter distance and smaller time zone differences of nearshore companies.
Additionally, navigating Covid-related health regulations and travel restrictions in distant and culturally different countries can be a huge business challenge. Nearshoring may empower businesses to overcome some of these barriers without hurting their bottom line too much.
Companies looking to outsource to an offshore company should ensure that they get they receive the highest level of services possible. Partnering with an outsourcing agency like MASA gives companies the same international-grade service offered to blue-chip companies across the globe.
2. Prioritising Quality
Companies now emphasise providing high-quality services to their customers.
For this, they’ll need skilled employees and advanced technology — which can be expensive in most countries.
As a result, companies are outsourcing tasks like software development, bookkeeping, recruitment, and payroll management to leading outsourcing agencies. MASA specialises in sourcing, vetting, and hiring the most qualified talent ready to bring value to businesses and their people.
In a study published by GSA UK in 2020, companies said that the quality and value of outsourced goods were top priorities.
Moreover, outsourcing enables companies to offer their clients customized solutions. An outsourcing company is more likely to have the time, expertise, and resources needed to perfectly customise solutions than an in-house team.
Are you keeping up with the trends?
These 5 top trends are what we think will remain relevant in 2022. MASA provides the platform that connects your business with the outsourced staff or labour force you need that. All outsourced staff comes vetted giving you peace of mind when adding to your workforce.
MASA is a leading temporary and permanent employment specialist providing expert staffing solutions locally and globally.
Get in touch with us today and let us help you, so you can focus on what matters.