One of the tasks of a business leader is to track the trends across the industry.
And within most industries, one common trend is the growth of outsourcing.
The pandemic has brought out changes in the way we work and the way business processes are distributed. But it’s a trend that precedes the pandemic.
The forecast, based on the past few years, is for businesses to look further for providers with quality services – in order to implement broader capabilities, higher scalability, and great technologies.
So what are the specific trends that have been emerging?
Let’s take a look!
The preference for remote work
One of the biggest impacts of the pandemic has been the acceleration of the adoption of remote working. For many professions, working from home has become the norm.
According to one survey, 27% of employees worked remotely pre-pandemic while now around 44% work remotely while 74% of companies still plan to shift all workers to remote work full time.
The priority of quality
All companies want high quality. And traditionally, by outsourcing you may compromise some of that quality. However, today, providing a high-quality service is an absolute necessity – whether or not a company outsources or not.
For this, companies that outsource will need experienced workers that are highly competent with advanced technology – whether it’s tasks like bookkeeping, payroll management or software development.
Last year, almost 70% of employers found it difficult to find talent in the US. This is particularly profound in tech. Outsourcing specific tasks and projects is thus the ideal alternative to finding home-based talent, given the fact that there is a broad talent pool around the world that US companies can source workers from.
The use of modern tech
Modern technology helps to automate processes, simplify operations, and increase efficiency. And in areas like software development and IoT, their evolution is twice as fast. It can be a challenge to regularly update things, and as such, many companies have begun to outsource to service providers.
With outsourced service providers, they are better placed to regularly update the technology of which they are experts. Some of the most current tech trends and emerging technology include robotic process automation (or RPA), artificial intelligence (AI), and cloud computing.
Popular with startups and small businesses
According to one report, 80% of small businesses in the US were planning to outsource at least one process in 2021. By outsourcing, small businesses and startups can have access to the best talent at competitive prices.
Outsourcing repetitive tasks can save a lot of time as well as money. They also use these services because smaller businesses are less likely to have the know-how when it comes to tasks such as payroll budgeting.
The preference for nearshoring
Of all outsourcing models, the most popular is nearshoring, which involves hiring third parties from a neighboring country or region to take care of tasks, processes, and projects.
Partnering nearshore means working with a team that is close by – in terms of geography, language, culture, and business practices.