Outsourcing Trends

The 10 Biggest Outsourcing Trends that BPOs Should Know

Over the past few years, outsourcing has grown tremendously. Due to safety protocols and social distancing, many businesses outsourced their various business functions during the COVID-19 pandemic, including customer service, call center services, and back office operations. It is estimated that the global outsourcing market will reach $435 billion by 2028, from merely $92.5 billion in 2019.  

Those who want to continue offering their services and grow their businesses must keep up with the growing trend. This article examines the various trends shaping the outsourcing industry today and in the future.  

10 Biggest Outsourcing Trends  

Businesses can gain a competitive edge by outsourcing a wide range of services. By doing so, they are able to reduce their operational costs and become more flexible in terms of staffing. These benefits have led more businesses to outsource some of their functions. Businesses are expected to spend over $700 billion annually on outsourcing by the end of 2022, according to data.  

The outsourcing industry is one of the fastest growing in the world. Many trends have contributed to its growth, which can shape its future. Here are some of the biggest ones.

1. Virtual Workplaces are taking over

Statista reports that 17% of US employees work remotely five days or more per week. In the midst of the COVID-19 outbreak, this number increased to 44%. Managers can monitor team members in real time using project management tools. Even after COVID-19 has settled, 70% of employees prefer remote work even though it was designed primarily for the safety of workers during the pandemic.  

Businesses can now execute their workflow from anywhere and anytime thanks to technological advancements and cloud infrastructure. A study by SCIKEY found that 64% of employees feel less stressed and more productive working remotely. Outsourcing is therefore a smart business decision. 

Businesses benefit from remote work by reducing operational costs, increasing productivity, and reducing turnover rates. A study by Global Workplace Analytics revealed that 37% of remote workers would take a 10% pay cut just to work from home. 

2. Building global teams has become more important

Most organizations have faced recruitment challenges as a result of the COVID-19 pandemic. Due to the closing of many countries’ borders, businesses need to become more agile in order to remain competitive. Global teams have become increasingly popular as a result of this. Deloitte’s 2021 Global Outsourcing Survey found that many businesses became more flexible with their work due to the Coronavirus outbreak. Beyond 2022, this trend is expected to continue. 

Building global teams is becoming increasingly popular among companies as a means of increasing brand awareness and expanding their talent pool. As a result, they are able to remain competitive in their market. Their operations continued to be sustainable by outsourcing work. 

Businesses benefit from a geographically diverse workforce because they have greater access to functional expertise and support. Furthermore, it allows employees to expand their networks, further increasing their job satisfaction. Rent, utilities, and other costs can be reduced as well. 

3. Progressive Web Apps growth

The use of progressive web apps, or PWAs, has also increased in recent years. Websites and mobile applications are combined with this technology. PWAs are expected to reach $10.77 billion in market value by 2027, according to research. In terms of operations, progressive web apps have proven useful to BPOs. 

The PWA solution solves the issue of some applications taking a long time to load. Rather than downloading or installing an app, you can save the home web page to your home screen like a regular application. A PWA works on any device and is effective even when a network connection is poor. Due to their efficiency and convenience, PWAs are preferred by most businesses. 

According to studies, apps lose 20% of their users for every step between the first contact with the app and the first use. In order to open the app, the user must search for it in Google Play or App Store, download it, and install it. By using a PWA, users can start using the app immediately without having to download or install it. The result is improved user retention and performance.

4. Cloud Computing is on the rise

With more telecommunication companies relying on virtual networking, cloud services will continue to grow. Approximately 70% of businesses are already using cloud computing services and plan to expand their investments. According to a Cloudwards survey from 2022, the cloud services market will reach $832.1 billion by 2025. 

Files and data can be accessed quickly and easily with cloud computing. Furthermore, it eliminates the need for businesses to invest in traditional data storage hardware, which reduces maintenance costs. Additionally, cloud-based applications are useful for collaborative and real-time work. 

Other modern technologies will also be reliant on cloud computing. This tool is flexible and expandable, making it a valuable outsourcing tool. As it is always available, users can easily share information. Businesses can collect and store resources on the cloud and access services through cloud technology. 

5. Omnichannel preference

Businesses have long utilized omnichannel solutions to improve customer experience. According to Harvard Business Review, 73% of consumers prefer to shop through multiple channels. Further, up to 85% of digital consumers begin their purchase on one device and complete it on another. 

Businesses can reach customers at various touchpoints with omnichannel solutions. Data helps companies improve products and services to ensure customer satisfaction by improving the customer experience. The concept of omnichannel marketing encompasses both traditional and digital channels, point-of-sale experiences, and physical and online interactions. 

Omnichannel marketing can boost customer loyalty when done correctly. Providing value and strengthening customer trust are two benefits. It also enhances brand recall by allowing customers to see your brand across different devices and platforms. In the end, repeat purchases lead to increased revenue.  

6. RPA and AI adoption

Artificial intelligence and robotic process automation have gained popularity in recent years. In addition to increasing productivity and efficiency, these technologies have also reduced costs and maintained maximum quality. Robots and other computer programs are now used instead of humans for repeating work profiles. 

In the field of customer service, interactive voice response, or IVR, is an example of artificial intelligence. In addition to providing basic information, the chatbot connects customers with human call center executives. By automating repetitive tasks and leaving critical tasks to humans, companies have realized they can save money by using AI and RPA. 

From 2022 to 2030, the AI and RPA market is expected to grow at a compound annual growth rate of 38.1%. Outsourcing companies will continue to focus on this market.

7. Recruiting niche talent

The shortage of talent specializing in new technologies has prevented businesses from adopting modern technology in fields such as network and security. A ManpowerGroup survey released in 2022 found that 75% of employers find it difficult to locate talent in the US. 

Upskilling your in-house team is time-consuming, so your best option is to outsource to a provider that specializes in niche talents. Your business will be able to access expertise that it lacks internally. You can fill specialized roles such as software development, content writing, web development, etc., with niche talents. 

It is best to hire niche talents based on attributes rather than skills. By doing so, you will be able to retain and train talent. Look for someone who is eager to learn and has initiative. People like these may not only provide you with the niche skill you need today, but also in the future. 

8. Focus on strategic partnerships

In today’s business environment, outsourcing partners share decision-making while providing non-core support services. In addition to their usual services, providers now complement each other in strategic planning and risk assessment as well. 

Businesses can maximize their internal capital by partnering strategically without spending more resources than necessary. Through it, you will be able to explore new ways of thinking, techniques, strategies, and tools. As the partners complement each other’s expertise, their respective growth is accelerated. New markets and customers can be reached through strategic partnerships. 

According to BPI Network, 57% of organizations use partnerships to gain new customers and 44% to gain new ideas, insights, and innovations. Businesses can meet and work with new people who could help them grow their businesses through strategic partnerships. 

9. Increasing cyber security protocols

Cybersecurity is clearly the biggest threat to outsourcing. There has been an increase in cyberattacks in recent years, which have resulted in the loss of sensitive information and data breaches in many companies. Cyber attacks ranked fifth on the list of top risks for 2020. In the United States, the rate of detection or prosecution is as low as 0.05 percent, according to the World Economic Forum’s 2020 Global Risk Report.  

Due to this, outsourcing companies must strengthen their cybersecurity protocols. However, managing an in-house cybersecurity team can be challenging. IT support outsourcing comes in handy in this situation. Data security is one of the specialties of Managed Service Providers, or MSPs. By 2026, MSPs are expected to reach $274 billion, according to Statista. 

MSPs are familiar with security protocols such as GDPR, HIPAA, and PCI. Furthermore, they can conduct regular reviews and updates of your security measures and ensure that clients’ data is managed safely and securely. 

10. Upskilling of employees

As technology evolves, businesses must keep up with these developments. Training and development are important investments for organizations. Now, they understand the importance of specializing employees in the latest tools. It is imperative that outsourcing firms invest in upskilling their workers. The demand for new skills increases as new technologies are developed. 

How crucial is upskilling to your employees? According to a study by Gartner, 58% of employees require new skills to be able to perform their jobs successfully. Moreover, the World Economic Forum emphasized the importance of upskilling in its 2021 report.  

Employee engagement and retention can be boosted by upskilling your employees. Employees are most likely to leave their jobs due to a perceived lack of growth opportunities, according to Gallup. Furthermore, replacing an employee is more expensive than retaining one, so it can save money. 


In order to remain competitive, businesses must keep up with the fast-paced outsourcing industry. Your business will be affected by these trends both now and in the future. 

What criteria do you employ to choose the perfect outsourcing partner? If you need help in finding the right outsourcing partner, book a FREE APPOINTMENT with Outsource Asia experts today.  

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