Outsourcing Trends for 2020

Outsourcing Trends for 2020

Picture of Daven Michaels

Daven Michaels

New York Times Bestselling Author, 30-year business veteran, and Executive Chairman of CurrentC Group.

Are you planning to start outsourcing soon and concerned about whether it will survive or not? Worry no more because outsourcing has come to stay, and will surely survive.

Continue reading to learn more about how your business can survive the outsourcing crisis and the outsourcing trends for 2020 and beyond.

A Brief Examination of the Advent of Outsourcing

Outsourcing was limited to low-risk functions like data entry and payroll when it was first started. Afterward, customer service and contact operations were outsourced on a large scale.

After that, Global organizations began outsourcing high-end functions such as healthcare, IT services, research, and BPO services to leverage the cost benefits associated with outsourcing.

Today, outsourcing has surely transformed the way businesses operate. It has turned out to be a major business policy for both large and small companies.

Outsourcing Trends for 2020 and the Near Future

  1. By the year 2020 and beyond, startups, small businesses, and SOHOs will see a higher implementation of outsourcing in order to increase their time to market and decrease operational inefficiencies.
  2. Pharmaceutical and manufacturing businesses will shift to cheaper and affordable destinations like the Philippines to take advantage of low operating and labor costs. Furthermore, Research and Development (R&D) outsourcing in these industries will as well tap into the enormous outsourcing potential of the Philippines.
  3. At present, outsourcing relationships are by far standardized, and people and process-driven instead of price-driven. This transformation is supposed to intensity the outsourcing service providers in the future.
  4. The Philippines, Europe, and Latin America might provide firm competition to India as the preferred outsourcing destination.
  5. Transportation, rising raw material, and oil costs will make it imperative for companies to consider outsourcing so that they can reduce their operating costs and keep it low.
  6. Development and support will increase as organizations move toward cloud outsourcing.
  7. In the next decade, more high-end business functions will be outsourced, as outsourcing of low-end services will stabilize.
  8. In 2020 and years to come, cost pressures will give way to custom outsourcing contracts that are flexible in their scope of delivery and Service Level Agreements (SLAs).

When it comes to the question of will outsourcing survive in the future? The answer is a capital YES. Outsourcing will keep surviving in the future, because it saves both time and efforts, and also offers businesses access to specialized skills, which can be used for some other core business ventures.

Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.

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