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According to GRAND VIEW RESEARCH, the global business process outsourcing market size was valued at USD 261.9 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030.
Due to the COVID-19 pandemic, the outsourcing industry faced a higher demand for growth. It underwent various changes and adopted new business models to stay ahead of the competition and fulfill the requirements of post-pandemic clients and customers.
Here are some of the top predictions about the future of outsourcing and what to expect in 2023.
Let’s take a look!
Talent war and better work policies
After the pandemic, the shift in the work environment created a sense of responsibility among employees to maintain a work-life balance, prioritize family over work, and maintain mental health. This led to an increasing number of resignations and difficulty to find the right talent, especially for outsourcing companies.
Even after the pandemic's normalizing effect, employees demanded higher compensation and showed the desire to work remotely or in a hybrid paradigm.
After acknowledging the above-mentioned points, it is expected that in the coming years, outsourcing companies will compete with each other for hiring talented employees and will provide better work policies to attract new hires.
Rise of remote work and technology
As many companies shifted to remote work to keep their employees safe, BPO companies also made their operations remote to manage their clients without compromising the health of their employees.
Shifting to remote work benefitted both the employees and companies, in terms of finance and physical health. Therefore, in the future years, remote work is expected to grow even more along with the use of remote work technologies, such as communication tools, and project management tools, among others.
BPOs constantly need to evolve with change and adopt new technologies to fulfill their client needs and manage remote employees.
Growth of remote outsourcing
At the beginning of the pandemic, many were hesitant about remote outsourcing, but in 2021 many companies started adopting the new way of operation and yielded better results. These sudden shifts in operation brought new technologies and methods into the process that had a direct impact on the service level agreement (SLA) with clients.
Using these new technologies, remote outsourcing businesses can guarantee high-quality results for their clients. In light of this, it is safe to say that outsourcing will likely expand in the coming years.
Increase in the use of automation and omnichannel technology
Currently, technologies like omnichannel and automation are making a big difference in the business operations and profit margins of outsourcing companies.
In a few years, it is expected that these technologies will be adopted on a large scale with customers becoming more familiar with chatbots. Automation tools will not only enhance customer experience but also reduce employee workload and lower the cost of operations.
According to a recent study by Deloitte, 93% of companies are considering or adopting cloud-based technologies while 72% of them are considering RPA solutions for enabling competitive advantages.
Demand for bilingual virtual assistance
With the increasing number of BPO companies, the demand for bilingual virtual assistants will rise in the coming years. According to Business Wire, the global intelligent virtual assistants market size is expected to reach USD 25.63 billion by 2025. It is anticipated to expand at a CAGR of 40.4% during the forecast period.
Currently, virtual assistants are frequently used to assist remote employees with basic tasks, such as scheduling appointments, appointment scheduling, administrative duties, bookkeeping, data entry, and much more.
As the demand for BPO grows globally there is a need to develop virtual assistance in multiple languages apart from English. It will help the companies to reach a larger audience, meet desired goals, and result in low-cost services.
Many critical operations would be outsourced
Companies around the world have recognized the benefits of outsourcing services and rely on outsourcing companies for their most critical business operations, such as IT, development, and research.
The future of outsourcing will continue to grow with more technical and critical services and help companies to diversify.
The only thing companies need to do is find the right partner for collaboration who will help them reach their goals.
Outsourcing will continue to expand around the world
The outsourcing industry will continue to expand around the world because of remote work and advanced technologies. New opportunities will knock on the doors, and they will continue to grow in the coming years starting from 2023.
Various outsourcing companies in South Africa, Bulgaria, Columbia, and others will grow their outsourcing business globally and will help in solving major labor challenges.
Many other countries like Fiji, Nigeria, and Jamaica are also mapping their way to outsourcing.
With new technologies and methods, the future of outsourcing companies can only expect good results.
It is still unknown what the future holds for us hence, companies should keep an eye out for future trends and take action accordingly.
To provide top-notch services to clients, outsourcing companies also need to monitor employee productivity and efficiency so that the quality of work does not get compromised.
Using KonarkPro can help companies and their employees manage time and stay motivated and productive all day long.
Q. Why outsourcing is the future?
Outsourcing worldwide will tend to grow due to its large remote force, internet usage, low cost, and superior talent with quality results.
Q. What factors are important before taking any decision for outsourcing companies?
- Technology and resources
- The service level agreement