The BPO (business process outsourcing) sector has become increasingly important in recent years. This is because there is a higher need for fast and effective services. Further, it costs less to operate, and there has been a lot of improvement in using digital technology.
Using more machines and advanced technology has helped BPO companies make their work smoother, better, and cheaper. The popularity of cloud services has made it easier to provide BPO services in a flexible and expandable way.
BPO companies now serve more industries and areas, reaching more customers and offering a wider range of services. In today’s digital age, businesses need specific BPO services that focus on tasks like analysing data and keeping their online information secure in order to stay competitive.
Global BPO Market – An Overview
A report from Statista said that the global business process outsourcing market was expected to be worth $0.33 trillion in 2022. They also predicted that the industry could grow by 6.69% each year, reaching $0.45 trillion by 2027. This means that many people are preparing to be a part of the BPO industry.
However, there’s one downside to BPO outsourcing: it might not work out well if you don’t plan to outsource properly.
And for this, you must keep up with the latest outsourcing trends. So what does the year 2023 hold for the BPO outsourcing industry? What will BPO outsourcing in 2023 be like? The article will discuss the top BPO trends 2023 that will help you plan your strategies properly.
But before we jump to knowing the trends for outsourcing in 2023, let’s quickly recall the BPO trends 2022.
A Quick Recap for BPO Trends in 2022
Here is what the business process outsourcing industry upgraded itself for in the previous year:
- More and more people opted to work remotely.
- Experienced a higher demand for global teams and become agile.
- Focused more on strategic partnerships
- Enhanced focus on cybersecurity to strengthen data security
- Rise in robotic process automation (RPA).
- Incorporating omnichannel solutions.
BPO Outsourcing trends to follow in 2023
Here are some upcoming BPO trends 2023 every professional business process outsourcing company must follow. Doing this will help them to stay competitive and take better decisions.
1. More Focus on Quality
Companies need to now focus more on giving their customers high-quality services. To do this, they need employees with good skills and advanced technology, which can be costly in many countries.
So, companies are starting to use things like hiring outside software developers, outsourcing human resources tasks, outsourcing business processes, and outsourcing legal processes.
Based on a study by Commit, the amount of software development work being outsourced is expected to grow by 70% in 2023 compared to the last year.
Additionally, outsourcing allows companies to provide tailored solutions to their clients. An outsourcing company is more likely to have the necessary time, knowledge, and resources to customise solutions compared to an in-house team.
2. More Collection and Usage of Data and Analytics
Using a lot of information called big data and analytics is helping businesses develop new ideas and make better choices. Companies that handle tasks for other companies are gathering and studying lots of data to understand how customers act, learn about the market, and see how well they’re doing.
Using this information, these companies can make more intelligent choices, improve their offer, and become more successful in their industry.
BPO providers want to stay ahead of their competitors and make their clients happy, so they are using data to help them make smarter decisions. This trend of using data for decision-making is expected to keep growing.
3. Recruiting Niche Talent
A new study by ManpowerGroup found that an overwhelming 77% of employers worldwide are having trouble finding people to fill their job openings. This is the highest shortage of skilled workers in 17 years.
Further, a yearly survey involving 39,000 employers from 41 countries showed a 2% increase in the difficulty of finding people to fill job positions compared to the previous year. This increase is more than double the 31% reported in 2010.
Since training their in-house employees takes too long, companies are outsourcing them to a vendor with expert talent in an outsourcing destination of their choice.
When a company hires a skilled outside company to help, they can quickly get the knowledge and skills they don’t have internally.
4. Increased Outsourcing Among Startups and Small Businesses
Outsourcing helps small businesses and startups get top-notch skills and tools without spending too much money. They hire outside help for tasks they do over and over again to save time and cut costs.
Since small companies often can’t afford to hire highly skilled employees, outsourcing allows them to tap into the best talent available.
According to a survey by Clutch, 90% of small businesses are planning to hire someone outside of their company to take care of a specific task or job in 2022. This is a 10% increase compared to 2021. This trend will continue to thrive in 2023 and cause significant changes in different industries.
5. Prioritise Process Automation and Take Necessary Actions
BPO leaders are investing in technology like artificial intelligence and robots (Robotic Process Automation) to make their work easier and faster. This helps them save time and money by getting rid of repetitive tasks. They can then use their people for more important things and give better service to their customers. This is becoming more popular as BPO providers want to grow and do well in the industry.
By transforming digitally and automating their processes, businesses can improve customer service, follow industry regulations and standards, work faster and handle data better, and help employees be more productive.
Furthermore, many BPO companies are hiring a new high-level executive called the “Chief Automation Officer” – a new C-suite executive. This person is responsible for managing the AI or RPA systems used by the company.
This involves a careful and organised search strategy, thoroughly evaluating potential options, and third-party review.
6. Focus on Cost Reduction
Before the pandemic, businesses were shifting their focus from cutting costs to placing more importance on quality and scalability. However, this changed when the pandemic hit.
According to a survey by Deloitte in 2021, 88% of the companies said that their top goal for outsourcing was to reduce costs. Of the majority of outsourcing companies surveyed, the main reason clients choose to outsource is to save money on their operations. Although they also desired flexibility, growth potential, and technological advancements.
This pattern is expected to continue in 2023 as the global economy recovers from the pandemic and economic downturns.
7. Increased Focus on Social Responsibility and Sustainability in BPO
Companies in the BPO industry are placing more importance on being sustainable and socially responsible. They want to lessen their negative effects on the environment and enhance their image.
BPO providers in different parts of the world are adopting eco-friendly actions to help the environment. They are using less energy, recycling waste, and using products that are good for nature.
They also care about people and are involved in activities that promote diversity, help local communities, and ensure that their employees are treated fairly according to the customs and traditions of their place.
If you care about being responsible in your business, it’s now easier than ever to find a partner who cares about the same things you do.
The Takeaway
Over the years, outsourcing has been changing in positive ways. Understanding these changes can help you create successful business plans for 2023. By learning about the latest outsourcing trends, you can better handle uncertainties in your business and work well with your team. By reviewing the top BPO trends 2023, you can develop a smart plan for successful outsourcing in the future.
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