Startup outsourcing has proven to be an effective approach for small businesses who want to focus on core functions, streamline operations, and reduce costs. Before making the jump, it’s important for small businesses to learn what both the current state and the future of outsourcing look like. Let’s review some trends in outsourcing and what it means for your business.
Quick Facts
- 37% of small businesses outsource at least one business process
- Companies that outsource to the Philippines can cut labor costs by 70%
- Accounting and IT services are the most popular outsourced processes for small businesses
- Deloitte found that 81% of executives outsource their cybersecurity capabilities, whether fully or partly.
- The same Deloitte survey found that talent acquisition is a top internal challenge for companies.
- 23% of small businesses consider high costs the biggest challenge in working with an outsourced team.
Outsourcing Trends in 2024
AI and Digital Tools
More and more businesses have incorporated the use of artificial intelligence (AI) in their practices. The outsourcing industry is no exception with several BPO service providers integrating innovations such as AI-integrated chatbots for websites or robotic process automation (RPA) to automate BPO tasks.
If you outsource customer service, for example, these AI-powered chatbots can receive concerns and respond faster, thereby enhancing the support your outsourced agents can provide. This combination of automation and the human touch can increase customer satisfaction and solidify brand loyalty.
Data Security
One of the benefits of startup outsourcing is gaining access to higher levels of cyber security that their operations might not be able to handle yet. With the increasing reliance on digital platforms, outsourcing providers are ramping up their investments in cyber security to avoid data breaches and cyber-attacks.
Outsourcing firms need to invest in end-to-end encryption for all communication channels to ensure that their clients’ data is protected. Since data protection regulations such as the EU’s GDPR and California’s CCPA have come into play, outsourcing providers have also taken increased measures to ensure compliance.
Cloud Computing
Cloud computing has made it possible for companies to outsource data storage and management and allows them to increase or decrease cloud services based on business demands. Since the pandemic, cloud-based services have also transformed the outsourcing industry. Both in-house and outsourced teams can access, edit, and transfer files in real-time fostering collaboration between the two.
Client-centric Work Model
Clients need to be able to communicate with their outsourced teams through multiple communication channels at multiple points in the day to ensure objectives are being met. Remote work and flexible schedules have allowed outsourcing companies to meet client expectations and respond promptly to their concerns. This client-centric model allows for an increase in transparency and collaborative decision-making in the outsourcing process.
In Conclusion
Digital innovations have and will continue to change the landscape of the outsourcing industry. It’s important to find a trusted outsourcing provider who can stay on top of and utilize outsourcing trends in order to maximize the benefits for your company. A good outsourcing provider in 2024 must have:
- Compliance with data security requirement mandates
- End-to-end data encryption for all communication channels
- Structured monitoring process for remote workers
FGC+ has all these data security protocols in place and more. Learn more about how we keep our clients’ data and information safe at www.fgcplus.com