The Future of Outsourcing: Emerging Outsourcing Trends to Watch Out for This 2024

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Outsourcing has been here for quite some time and will probably stick around for the long haul. As your business grows, it has become necessary and cost-effective to outsource several functions while gaining a competitive edge.

Each year, various outsourcing trends come out to shake up the industry. To stay ahead of the competition, we are here to share with you the top outsourcing trends you shouldn’t miss this 2024.

Key Outsourcing Statistics for 2024

These statistics explore how and why companies outsource their various business operations.

  • According to Grandview Research, the global business process outsourcing market is expected to reach $525 billion by 2030. Business process outsourcing (BPO) is projected to grow by over 9% per year between now and 2030.
  • Two sub-industries, BPO and IT outsourcing, dominate the global outsourcing market. IT includes cloud computing services, web and mobile app development, cyber security, data backups to name a few. On the other hand, BPO encompasses marketing, customer support, payroll and other HR management services, and logistics.
  • Companies that outsource to the Philippines can cut labor costs by 70%. The Philippines has two big selling points for companies looking to outsource: a highly capable workforce and a low cost of living.

Let’s explore some emerging trends that are expected to shape the outsourcing landscape.

1. AI and Automation

Most organizations have adopted artificial intelligence (AI) in recent years, believing that it is an integral aspect to gaining competitive advantage. AI has emerged as a game-changer, revolutionizing the way businesses outsource their operations.

Automation will be able to do more than just repetitive tasks, thanks to AI and machine learning skills that are becoming more and more advanced. Outsourcing providers are increasingly offering AI-driven solutions, including chatbots, robotic process automation (RPA) and machine learning for a wide array of services.

In 2024, these outsourcing trends will likely continue to become further integrated into outsourcing processes to improve efficiency, increase accuracy, and reduce manual processes.

2. Data Security and Compliance

With persistent threats and high costs, cybersecurity, compliance, and data security are of paramount importance to saving money, protecting your reputation, and safeguarding your clients’ information. As a result, the cybersecurity industry will continue to grow this year. More businesses will look to outsource their cybersecurity, compliance, and data protection to expert, third-party providers.

This trend will drive the growth of cybersecurity-focused outsourcing services, such as security operations, vulnerability assessments, and compliance management.

3. Cloud-Based Solutions

Cloud-based computing is another feat of technology that will continue to dominate the outsourcing industry. With cloud-based solutions, businesses benefit from more efficient, scalable, and cost-effective operations. Moreover, this outsourcing solution allows businesses to streamline their processes and access their data and applications from anywhere. Plus, cloud services offer enhanced data security and reliable backup capabilities.

4. Data-Driven Customer Experience

Every business thrives on data. Yet, without the expertise to extract insights, data is meaningless and useless. Hence, outsourcing data-driven solutions are a growing trend, which include data processing and data analytics, to name a few. By analyzing customer data, companies can personalize their interactions and provide better user experience for customers, which ultimately drives better business decisions and sales.

5. Sustainability and Ethical Outsourcing

Now that environmental and social responsibility continue to gain prominence, organizations consider outsourcing partners that adhere to sustainability and ethical business conduct. This challenge arises from the need to ensure fair labor practices, protection of human rights, and environmental sustainability.

As businesses continue to recognize the importance of sustainability and social responsibility, we can expect more innovative solutions to emerge.

executives having a virtual discussion with an outsourcing partner

What Services are Most Likely to be Outsourced in 2024?

Information Technology (IT)

Outsourcing IT operations has been a hot topic for years. IT outsourcing covers a broad range of services – from software development, cybersecurity and cloud services to name a few — all of which are important for modern businesses.

Digital Marketing

In this modern age, digital presence is the key to raising brand awareness and expanding your reach. Outsourcing digital marketing services gives you access to experts who know how to leverage strategies like SEO optimization, content creation, and social media campaigns to get best results.

Human Resources

Human Resources (HR) is probably one of the most outsourced services today, especially for a growing business. Outsourcing allows you to focus on the integral parts of your business while ensuring compliance and efficiency in day-to-day HR operations. HR functions include such as recruitment, employee onboarding, and benefits administration.

Finance and Accounting

One of the outsourced services that will carry over this year is finance and accounting. From tax consultations to financial planning and day-to-day bookkeeping, outsourcing your accounting can free up your team to focus on their core tasks. It’s important to hire professional accountant who are knowledgeable on local tax regulations.

Customer Service

Customer service has been one of the most popular outsourced services across the globe. By outsourcing offshore and onshore, you may be able to easily offer round-the-clock service. When outsourcing, companies can gain cost savings, revenue growth, and customer positive experience.

The Future of Outsourcing

Outsourcing will continue to be a strategic solution for businesses — offering optimum efficiency, reduced operational costs, and enhanced flexibility. These current outsourcing trends underscore the transition toward a strategic, quality-driven outsourcing aimed at delivering significant competitive advantages. From here on out, the growth of outsourcing lies within technology, innovation, and sustainability.

Companies should consider these trends when developing their outsourcing strategies to remain competitive and address their specific business needs effectively. The same holds true for outsourcing providers, as they are challenged to cater to the diverse challenges and demands of the global market while addressing the evolving preferences of businesses.

team of colleagues working at their desk with headset

Finding the Right Outsourcing Partner in 2024

Finding the right outsourcing partner is more critical than ever. Here are tips when choosing the ideal outsourcing provider for you.

1. Define your needs clearly.

First things first: Be sure to have a clear view of what your organization currently needs before you outsource several services. You don’t have to outsource every service, especially if you have an in-house team that can handle critical tasks. Make a list and evaluate which functions you need help with, or you need expertise on. Look for several options and communicate your needs clearly so you can get the best value for your money.

2. Prioritize data security and compliance.

When you outsource a project, you will often find yourself sharing sensitive business information with the outsourcing partner. Therefore, evaluate your provider’s data security measures, compliance with regulations, and network and security audits regularly. At the onset, establish clear roles and responsibilities regarding data protection and confidentiality with your outsourcing partner.

3. Leverage outsourcing provider’s technology.

There are tons of promising innovations that can help your operations run efficiently and smoothly. Automation, AI, and cloud-based computing are some of the outsourcing trends that you can leverage for your business.

Truth be told, it’s difficult to keep up with today’s technology, especially since it evolves at a rapid pace. Plus, among many other things that you’ll need to pay for involve software, equipment, and other management programs. Hence, it will be beneficial and cost-effective if you work with a company that can already provide you with these resources.

4. Choose a flexible outsourcing partner.

Business needs and wants shift rapidly. Thus, having the flexibility to scale your operations accordingly is crucial. Choose an outsourcing partner that can accommodate your business growth. Assess their ability to adapt to changing project requirements, timelines, and unexpected challenges.

Plus, look for flexible rates if you want to avail of specialized or several services. Communicate your needs and ask if there’s a way to work around your budget without taking away the core functions you want to outsource.

5. Conduct thorough research.

Take your time when choosing the best outsourcing provider before you work with them. Research thoroughly and weigh the pros and cons of each option. Consider factors like the company’s reputation, client reviews, service inclusions, field expertise, and company culture to ensure that they can meet your needs and expectations. Also, make sure the company is licensed, insured, and compliant with all regulations.

Expert Tip:

Outsource in the Philippines to get the best value for your money! You’ll have access to topnotch services and a great pool of talent — all in budget-friendly rates.

diverse team discussing outsourcing trends around a table

Stay on Top of the Trends with Outsource Philippines

Outsourcing plays a vital role in today’s fast-paced and highly competitive business landscape. Outsourcing has proven to bring high returns for organizations of all sizes. Hence, it’s no doubt that businesses will continue to leverage outsourcing for years to come.

Given these evolving outsourcing trends, you must select your outsourcing partner wisely. A key factor to your successful outsourcing operations is to choose a reliable and competent service provider. Outsource Philippines is here to provide outsourcing services, not only to meet your current needs, but also to help you adapt and stay ahead of the emerging outsourcing trends. Contact us today and request a free quote!