Easter isn’t just about the Easter bunny and gorging chocolates. For many, it’s a time of reflection and celebrating new beginnings.
In keeping with this theme, between bites of chocolate, I’ve been reflecting on the major development in offshoring over the last couple of years. Particularly since COVID, the industry has been fast-evolving.
Here’s my top 10!
1. Remote work and virtual teams:
The COVID-19 pandemic has accelerated the trend of remote work and virtual teams. Outsourcing has been around for decades, but COVID certainly accelerated widespread acceptance and adoption.
2. Rise of digital outsourcing:
Companies are increasingly offshoring digital tasks such as web design, social media management, and online marketing to specialized service providers.
This trend will only accelerate as local tech salaries continue to soar.
3. Increased focus on security and data privacy:
As companies rely more on outsourcing and digital platforms, they are also becoming more concerned about the security and privacy of their data.
IT security will become a central talking point – especially as workforces become increasingly remote and digital-dependent.
4. Greater emphasis on positive impact:
Clients are generally concerned for the welfare of their offshore staff – especially in emerging economies. The outsourcing industry usually does a great job of looking after their most precious asset – the staff.
However, recently there has been a big push toward ‘impact sourcing,’ B Corps, and ‘Great Place To Work’ certifications.
5. Nearshoring and reshoring:
Due to the pandemic and geopolitical tensions, some clients are choosing to outsource to providers closer to their own operations.
6. Upskilling the workforce:
Outsourcing started as a high-repetition, low-capability function – think call centers and telesales.
Now, the industry boasts world-leading talent across virtually every professional role imaginable. The sector continues to upskill aggressively
7. The rise of PEO:
Professional Employer Organisation (PEO) and Employer of Record (EOR) are cousins of outsourcing, facilitating global employment.
Companies like Deel.com, Remote.com, and Omnipresent have raised billions from Silicon Vally in an attempt to simplify a single global workforce.
8. It’s a hot market:
The outsourcing sector is booming, and there’s plenty of attention on the space. As the industry matures, there’s a lot of M&A activity, with the big players buying up smaller innovative firms and private equity looking for opportunities.
Watch this space..
9. New entrants:
There are a lot of new entrants to outsourcing. Places like Etiopia, Uzbekistan, Fiji, Jordan, Albania, and more… All these countries are set on becoming the next top outsourcing destination.
10. Increased use of automation and AI:
Everyone is talking about ChatGPT right now! So I’m not going to add to the noise. Suffice to say that many firms are turning to automation and AI to increase efficiency and reduce costs in their outsourcing operations
The question for your business
What reflections do you have of your business? And what will you change this coming year?