Outsourcing in 2022: A recap

2022 saw the economy opening back in full swing. Unfortunately, this does not mean that the after-effects left by the pandemic are no longer felt by businesses.

Organizations are still reeling in from the sudden shift experienced by the global workforce. Businesses are aiming for adaptability to stay agile and competitive. With this, the preference for remote work and outsourcing grew, especially for small businesses.

The business process outsourcing (BPO) industry made US$246 billion in 2021 alone. It also has a CAGR of 9.1%, projecting its growth to skyrocket up to a whopping US$381.62 billion in 2030.

Its steadfast acceleration is a result of multiple industries that choose to outsource functions mainly for reducing costs and to improve their scalability.

Outsourcing in 2022

Providing solutions to obstacles that arose from the pandemic is the main theme of outsourcing in 2022. Here’s how the BPO industry changed the business landscape this year.

1.??????Growth of global teams

Unprecedented challenges drove companies to think outside the box. Growing teams outside their home country and headquarters are one of the ways organizations increase their agility. Having a workforce spread throughout the globe is an operational strategic plan that ensures contingencies in any event.

With global teams, companies also improve their scalability and gain more firsthand knowledge about local markets. Outsourcing easily helps in a company’s expansion plans without them having to shell out a relevant amount of money.

2.??????The rise of startups engaging in BPO services

Bankruptcy is often attributed as one of the main reasons why startups fail. Taking caution from startups before them, many have strategized to avoid having the same fate. Especially with the talent shortage caused by The Great Resignation this 2022.

Outsourcing is a solution most startups turned to. This year, around 27% more startups use BPO services to save up to 70% on employment and overhead costs. Aside from the huge cost savings, BPO firms also have a quicker turnaround time in hiring qualified candidates thanks to their global talent pool.

Another goal of startups in outsourcing is to reduce non-income-generating tasks from business leaders. BPO firms help accomplish this goal by providing administrative staff that takes care of non-core activities.

3.??????Drive for cloud-based technology

As predicted, there was an increased preference for cloud-based software and applications this 2022. The flexibility it offers such as easily being able to increase storage space in one click makes it the prime option for businesses.

Not having to invest in a physical infrastructure also makes it viable for businesses that outsource. With this, organizations with BPO partners are leaning more and more toward cloud-computing technologies. The ease of sharing and accessing files in real time allows for seamless collaboration among remote teams.

Its robust security also employs measures to ensure the prevention of data loss.

4.??????Focus on cybersecurity

Data is valuable now more than ever. A common concern of companies when outsourcing is keeping their cybersecurity intact. With a 31% increase in security attacks from 2020 to 2021, businesses were forecasted to invest heavily in cybersecurity for 2022 – and so they did.

Organizations with BPO partners now view end-to-end security as a critical necessity. This especially goes for BPO firms that work with clients handling high-level, confidential information.

Various cybersecurity measures are implemented by outsourcing companies to prevent the most common attacks such as ransomware, phishing, and DDoS.

What’s to come in 2023

This year is just a peek at what’s to come in outsourcing. In 2023, experts are predicting businesses to outsource more technical functions or specializations. AI-based technology will also play a huge role in helping with the productivity of outsourced staff.

Remote teams are also expected to increase, and existing ones will likely expand more. ?

The Remote Group

Are you ready to take your business to new heights this 2023? Get in touch with our outsourcing experts today to find out ways we can support your business.