Outsourcing Trends to Watch Out For in 2020

Outsourcing Trends to Watch Out For in 2020

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The outsourcing industry is rapidly growing and the trends come and go quickly. What might be working a year ago may not be effective for your business today. And what you might think as inefficient before may be the growing trend today. Change is the only thing constant in the business industry, particularly in the outsourcing world where service providers have to adapt to the changing needs of businesses.

Another factor that contributes to these changes is the skyrocketing technological advancements. New tools are developed every day, and these changes in technology have a huge impact on how outsourcing is done on a global scope.

Let’s look at the top outsourcing trends every business owner, marketer, and outsourcing service provider should watch out for in the coming months or years.

1. Increase in Process Automation

Artificial intelligence or AI is rapidly expanding to nearly every aspect of our lives, and the BPO industry is no exception. Thus, businesses and service providers must adapt to the AI revolution, or be left behind. BPO companies will be largely affected by the rise of AI because the services they offer mostly involves completing manual tasks outsourced by clients.Iif AI can do the job at lower cost, there is a huge possibility for BPO companies to lose their clients as they switch to the more cost-effective solution. Because of this, BPO companies must learn how to adapt to the use of AI and configure their services to integrate artificial intelligence into their strategy to stay competitive.

2. Rise of Social Media Services

We have seen how xscial media re-invented the way that businesses market to consumers, and we’ve also seen how social media was instrumental for consumers providing feedback, both positive and negative, to companies. Consumers have realized that a post or tweet directed at the business that goes viral can have greater and quicker results than reaching out to customer service. Because of this, BPO companies that offer customer services using traditional platforms, such as call centers, will have to shift towards social media management to deal with customer service issues that are posted on social media.

3. Shift Towards SaaS and Cloud Computing

The popularity of cloud products and software as a service (SaaS) products will continue to rise in the near future, having huge impact on BPO companies. According to the 2017 State of the Cloud Report survey, results found that 95% of businesses are using some form of cloud technology. This trend towards using cloud products and SaaS will result in the increased rate of adoption by BPO companies, as businesses expect their service providers to be using the latest technologies to improve efficiency and cost savings.

4. Diversification of Outsourcing Services

Outsourcing services offered by BPO companies originally include accounting, information technology (IT), HR, and call centers. But now, outsourcing companies have started to offer a much wider range of services, such as web development, social media management, digital marketing, telesales, managed services, and other more robust forms customer support services. As businesses look to outsource more of their business processes that are not core competencies, we can expect outsourcing service providers to continue to offer expanded services to meet their clients’ requirements.


The outsourcing industry is an ever-changing industry, and service providers, as well as businesses, have to learn how to adapt to the changing landscape to leverage the benefits that outsourcing has to offer.

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