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Genesis of an industry
Outsourcing has been changing the game since its inception.
What started in the early 18th century, as the import/export business took hold during the industrial revolution, has evolved into something much more.
It has become the catalyst for strategic shifts by smart companies to leverage a wealth of global talent and technological opportunities.
And it brings with it an opportunity for tremendous cost reduction.
Evolution of the game
As the world embraced globalization during the 1990s and 2000s boom period, outsourcing evolved beyond mere cost-saving.
It became a strategic tool for business growth.
The rise of information technology and the internet has only served to further facilitate this shift.
Businesses began to outsource more complex functions, like customer service and IT operations, to specialized firms.
This marked a notable expansion period, with Business Process Outsourcing (BPO) sectors in lower cost countries like India and the Philippines exploding in popularity.
The current landscape
Outsourcing today is an integral part of the global business landscape.
It’s no longer just about cost-saving; it’s about adding value and innovation to any business smart enough to step up and take advantage of the increasingly globalized world.
With the AI revolution well and truly underway, the possibilities for outsourcing are seemingly endless.
Whether it’s Amazon with their cloud computing services, IBM with their data analytics, or Google with their AI, companies are redefining technology at a staggering rate, and all of these areas are rapidly becoming hotspots for outsourcing.
Challenges overcome
The road hasn’t been entirely smooth.
Outsourcing faces challenges like any business, with factors like quality control, data security, and cultural differences all playing a part in the evolution of the business model.
But the industry has adapted.
Strict quality standards have been implemented, together with heavy investment in cybersecurity, and focusing on cross-cultural training.
Future
The future of outsourcing will be more collaborative and technologically driven, that much is obvious.
Automation and AI will naturally play a part, changing how services are delivered.
But there is something else; a surge in ‘smart outsourcing’.
Decision-making and processes becoming increasingly automated, leading to greater efficiency, more innovation, better customer service all round.
The net result of all this?
An ability for all businesses willing to take the ride the wave to foster deeper, more strategic partnerships between them and their outsourcing partners.
Traditional models, redefined.
The question for your business
How will outsourcing shape the future of your organization?
