The Future of Outsourcing Practices: Top Trends in 2022

Because of the better solutions, a larger pool of potential clients, and advanced security, outsourcing will become more beneficial and reliable. Chamber of Commerce launched the “America Works Initiative,” a campaign aiming to grow the country’s workforce. Writing for InfoQ has opened many doors and increased career opportunities for me. I was able to deeply engage with experts and thought leaders to learn more about the topics I covered. And I can also disseminate my learnings to the wider tech community and understand how the technologies are used in the real world. Despite the uncertainty of 2020 pushing it further, the digital model of outsourcing is all set to emerge.

• By contrast, in the 2008 recession, tech skills shortage fell by a greater amount.
• Decentralized apps have a better line of defense compared to other cybersecurity measures.
• BPO service providers help companies bridge need gaps within their structure and cover additional technical or non-technical business functions.
• According to the research conducted by Computer Economics, during the last year, the amount of security work outsourced increased.
• For employers, the wage hike means an average of 3.9% increase in payroll costs.
• With this outsourced model, virtual receptionists manage a company’s calls, texts, chats, and appointment schedules.

Certain services may not be available to attest clients under the rules and regulations of public accounting. You can go through the top outsourcing trends listed above to develop a strategic plan for successful outsourcing for the coming years. In the past years, most companies had little idea about the decisions made regarding the outsourced project as the outsourcing provider handled it completely. Also, Eastern Europe has a high percentage of skilled people (including tech professionals), affordable talent, and strong data security. Business and outsourcing companies use Artificial Intelligence to automate repetitive tasks, calculations, or replying to messages.

#3 Increasing Robotic Process Automation

There are certain trends that are expected to take a complete turn after the lockdown, and digital transformation or business automation will be a popularly-adopted strategy. In years gone by, companies would often have to have built a large company with big revenues before they even really considered outsourcing in any meaningful way. With the way the world has become better connected, and businesses have started to become more nimble and flexible, it is possible to start to outsource from day one. For example, you could start a company knowing full well that you were planning to outsource a lot of the services you offer to clients, or aspects of your business such as customer support. Outsourcing your whole customer experience relies on a company having a good track record of managing customers, but if it is done correctly, it can take a lot of hassle away from your business.

After all, the technology can reduce costs, provide control, and promote efficiency. We expect AI to significantly impact outsourced call centers which require accurate and speedy transactions. One of the more telling indicators of this growing trend is the widespread nature of its implementation.

Everything You Ought to Know About Inside Sales Outsourcing

By prioritizing these key factors, outsourced partnerships can achieve long-term success and drive sustainable growth for both the BPO provider and their clients. The outsourcing industry has experienced significant growth in the IT sector in recent years, with IT tasks accounting for 37% of all outsourced tasks. This growth is driven by various factors, including cost savings, scalability, and flexibility. The average IT department budget allocated to outsourcing is 13.6%, indicating the importance of outsourcing in the IT industry. Contrary to the popular notion that businesses sustained all their digital transformation projects last year, the survey shows that many companies were selective about which ones they pursued. And while 76% of respondents expect to slow down some transformation initiatives during the next 24 months, 96% expect to accelerate the execution of some transformation projects.

However, over 60% to 65% of strategic partnerships end in failure, often due to unrealistic expectations, inability to reach a consensus on objectives, and insufficient trust or communication. For these reasons, outsourced partnerships should always be based on transparency and open communication, with clearly defined goals and expectations from both parties. The global augmented reality (AR) market has experienced remarkable growth in recent years and was valued at around $38.5 billion in 2022, according to Grand View Research. It is expected to grow at a compound annual growth rate (CAGR) of 39.8% from 2023 to 2030. The global virtual reality market size was valued at USD 28.41 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030, according to the Grand View Research.

Future Trends of Outsourcing: Choose devabit

The offshore outsourcing sector has become among the solid pillars of the modern U.S. economy. From the Great Recession of 2008 to the recent global health crisis, outsourcing has helped many businesses weather economic downturn—some even thrived. Primarily prompted by stiff competition for talents https://www.globalcloudteam.com/ and high turnover rates, wages and compensations in the U.S. ascend. More than 80 states, cities, and counties have increased their minimum wage this year, recording the highest uptick in more than a decade. For employers, the wage hike means an average of 3.9% increase in payroll costs.

When outsourcing, the quality of the partner you choose is paramount to a successful relationship and outsourcing experience. Problems with outsourcing can occur when businesses outsource with partners that are not high-quality choices. Disadvantages of outsourcing can include problems like a lack of continuity in communications, quality, security concerns and hidden fees or costs. Additionally, if you don’t receive the quality of service you expected, the business can suffer overall. It’s one resource you can rely on as you continue your digital transformation. KPMG has specialized teams of experienced outsourcing professionals ready to help.

#4 Greater Demand for Social Media eCommerce Services

This article will look into triggers propelling outsourcing growth in 2022. But first, let’s take a quick look at how big the outsourcing industry is in the U.S. I discovered InfoQ’s contributor program earlier this year and have enjoyed it since then! In addition to providing me with a platform to share learning with a global community of software developers, InfoQ’s peer-to-peer review system has significantly improved my writing.

This trend could continue in 2023 while the world economy recovers from the pandemic and recessions. Similarly, a 2022 report by Bloomberg revealed that 80% of companies in North America like the United States, were actively considering nearshoring. In the post-pandemic world, companies are nearshoring more than in previous years. Digital transformation can open up several ways for intruders to access inside data.

Outsourcing Services

The Bureau of Labor Statistics reported that in November 2021, 4.5 million U.S. employees willingly left their jobs. According to the agency, the latest figures recorded an all-time high, prompting many to dub the movement as “The Great it outsourcing trends Resignation”. Taking a multi-level security approach will become a standard for many BPO companies. Purplesec’s 2021 Cyber Security Statistics report revealed that cyber-attacks increased by 600% since the start of the pandemic.

Businesses wouldn’t want to put all their eggs in the same basket if something similar happens in the future. Multi-vendor outsourcing means they can upend the drastic effect that such unrest might cause. Hence, companies that are more stable and competent in enabling crucial functions outsourcing are predisposed to a competitive advantage. Census Bureau showed that the country averaged only about 200,000 net international migration annually from 2017 to 2019, about 450,000 short of the yearly average of 650,000 from 2010 to 2017. The steep decline in immigration threatens to hamper the country’s economic recovery.

Future Trends of Outsourcing: Changing the Nature of Partnership

In 2019, Clutch found that 37% of small businesses already outsourced at least one business function, and Statista reported the total market value of the global outsourcing market to be worth $92.5 billion. More recently, Deloitte found that around 90% of companies see cloud computing as a vital aspect of outsourcing. In IT outsourcing trends 2022, we foresee that organizations will be more open to HR outsourcing relevant positions. This is especially true for the tech industry, as lower infrastructure costs paired with highly skilled individuals who are not in the same region will encourage businesses to hire third-party resources.