We’re into the second half of 2019 and this is the best time to prepare for the coming 2020. One of the things businesses have to prepare for is how the outsourcing landscape will evolve in the coming years, and what changes will contribute to this paradigm shift.
Starting in 2020, outsourcing will develop in new areas instead of providing the same services over and over again. But which areas of a business do you think will be outsourced in the future?
Even since the outsourcing trend started, companies have been offshoring production and other services abroad to save on expenses, but it was restricted to low-risk processes such as payroll processing and data entry. Over the years, businesses have begun to outsource single-service basic needs that are outside of a company’s core business. For example, customer service operations started to be outsourced on a large scale.
Most companies, particularly those who have tried outsourcing, swear by the benefits of this trend. But the outsourcing debate continues over its long-term sustainability. Some businesses are afraid of jumping into the outsourcing bandwagon because of fear of lack of quality control, lack of hold on project management, and lower opportunities for innovation.
But despite these fears, outsourcing has continued to grow and is now being embraced by businesses of all sizes and industries. And with 2020 coming up fast, it is important to understand which new outsourcing trends will be beneficial for your business.
Outsourcing Trends in 2020
Outsourcing strategic processes.
We all know that most of the outsourced processes are those that are time-consuming non-core tasks, such as telemarketing, data entry, lead generation, and sales. However, we have seen some strategic tasks starting to be outsourced, such as customer service, content and digital marketing, as well as social media. These tasks are crucial for the branding of a company so entrusting it to an outsourcing partner is a huge step towards relationship building. And in the future, outsourcing will evolve to include more strategic areas, such as management, idea generation and innovation.
With the outsourcing trend becoming prevalent in the industry, the processes will become standardized across the field. This move will level the playing field for outsourcing providers in the future.
Custom outsourcing services.
Due to cost pressures and the ever-changing needs of businesses, custom outsourcing services that are flexible in contract and scope of delivery will become in demand. This is more attractive for businesses and organizations that have specific needs and requirements.
Higher outsourcing among small businesses and startups.
2020 will witness a higher adoption of outsourcing among small businesses and startups to reduce the operational inefficiencies and increase their time to market. Raising prices of raw materials, transportation and oil costs will also prompt companies to outsource to lower their operating costs.
Outsourcing evolves with technology, so it is only natural for technological advancements to have a huge impact on outsourcing. For example, the rise of cloud technology has paved the way for cloud outsourcing where all outputs are processed and delivered through the cloud. Instead of investing in expensive hardware, outsourcing providers can deliver outsourcing solutions via cloud technology. Although this trend is popular among IT outsourcing providers right now, it will soon become an industry-wide trend in the future.
Outsourcing will continue to evolve in the future, and it is important for businesses to keep abreast with the changes in order to make strategic and informed decisions ahead of their competitors. Are you ready to take that step towards outsourcing? Send us a message or contact Online Officer via our Contact page.