In recent years outsourcing has witnessed substantial growth. Outsourcing has allowed small businesses to access specialized skills, reduce costs and improve efficiency.
Several trends are shaping the future of outsourcing. Small business owners need to understand these trends to effectively leverage outsourcing.
Remote Workforce
Recent experience has shown that employees can be productive working remotely. Companies are now more open to outsourcing tasks to remote teams, which allows access to broader talent pools. This trend is likely to continue in 2024.
Companies will continue to leverage technology to allow employees to work together seamlessly across different time zones.
Customer Experience
Customer service remains a key differentiator for most small businesses. As they gain experience in the US market, outsourcing companies are expected to continue to improve their customer service and customer experience results.
Initial efforts to outsource to the Philippines have improved dramatically. Experience in the market, staff training, and improved technology have all contributed to improved results in this area.
Expect that customer service and customer experience outsourcing will continue in 2024.
Niche Services
As business becomes more specialized, outsourcing providers are concentrating more on niche services. Instead of offering a broad range of general services, many are becoming experts in a particular field.
Cybersecurity, artificial intelligence, and robotic process automation are areas that allow outsourcing companies to develop specific expertise. Developing deep industry knowledge allows outsourcing companies to differentiate themselves and offer valuable knowledge and services to businesses in need of those services.
Knowing what parts of their business to outsource will continue to be a challenge for small businesses in 2024
Blockchain Technology
Blockchain is increasingly being incorporated into outsourcing models to improve transparency and security.
This decentralized and distributed ledger system allows each interaction to be timestamped and verified before being added to the chain of other transactions, forming an immutable record. The decentralized nature of blockchain reduces the risk of fraud and data tampering.
Strategic Partnerships
In the past outsourcing was a transactional relationship. You hired an outsourcing company to reduce costs and provide an explicit benefit.
There is a shift toward building strategic partnerships. This involves building long-term relationships with outsourcing partners based on mutual trust, shared goals, and a deep understanding of each other’s business goals and objectives.
As in any other relationship, if both parties invest time and resources to understand each other, there can be a high degree of alignment. Strategic partnerships can evolve far beyond cost savings. If the partners can add value to each other both sides stand to benefit.
Expect this transition to strategic partnerships to continue into 2024 and well beyond.
What Not to Outsource
Certain work is restricted from being outsourced by the US government. Before beginning any outsourcing relationship, you should fully understand any legal requirements.
Do not outsource your company’s core functions. This is your competitive advantage and what makes your company valuable and unique. It’s what separates you from the competition. Hire regular employees and nurture them as they will become vital to your success.