One of the most significant effects of the COVID pandemic has been the rapid digital transformation of business. It’s also made IT outsourcing one of the fastest growing industries in the world. But what’s next for this now mission-critical market sector? And how will it impact you?
Post-pandemic, every company is a tech company. They have to be. As the 2020’s unfold, technology has become critical in helping industries survive – and even thrive – in the face of unprecedented global upheaval.
As a result, IT outsourcing is also one of the fastest growing industries in the world. Recent figures from early 2021 show that the BPO market, which was valued at $232.32 billion in 2020, is expected to soar with a CAGR of 8.5% right up to 2028. (1)
The factors underpinning this impressive Covid growth curve, however, are many and varied.
For example, remote work is here to stay, at least in part; and the new remote infrastructure making this all possible involves both existing and new technologies that are constantly evolving.
Security and cybersecurity
With technology growing and diversifying at an exponential rate and with employees remotely accessing networks, enterprises are being increasingly exposed to cyber-attacks and new threats.The digitization of business management has led to an urgent need to safeguard and secure company networks, data, and infrastructure.
A recent cybersecurity 2021 report states that since the COVID outbreak cybercrime has increased by 600% (2). In fact, a malware attack can cost a company an average cost of $2.4 million, and as a resuly cybersecurity is now an IT priority all over the world.
From outsourcing IT jobs to strategic partnerships
Just as IT outsourcing has become more and more integral to core business operations, so too is the client/provider relationship evolving. The pandemic reinforced the need for strong IT outsourcing partners, and in the coming years companies will focus more on building partnerships with a single supplier, whilst the industry itself will become more collaborative.
With huge changes in technology adoption, multiple specialties and focused areas of expertise will become increasingly important for both clients and outsourcing suppliers.
Outsourcing companies that can provide experts in diverse fields will be much sought after.
In addition to changing relationships, there are also a number of key IT trends now becoming more evident.
Robotic process automation (RPA)
A recent GSA Report predicts that the RPA market will grow to over $13 billion by 2030. (3)
RPA can boost outsourcing operations significantly by automating repetitive tasks, enabling employees to focus more on exciting and challenging tasks, not to mention the more complex ones. Businesses will demand services from outsourcing companies that can provide this type of automation, safeguarding them against lockdowns and restrictions.
Artificial Intelligence (AI)
With so much focus today on customer service and experience, AI can simplify business processes significantly by handling huge volumes of data and mining them to provide better user experiences. They can also decrease the average handling time of customer complaints and queries as well as allowing companies to have better control of their data and processes, integrating all areas of business intelligently.
From automation to Hyper-automation
As businesses expand and grow, there will be a need to shift from simple automation to hyper-automation that scales. With hyper-automation, automatic software systems can learn from their environments, modify their own algorithms, and adapt to changing physical or software updates, thereby speeding up business processes and decision-making. Automation will not only involve software but also extend to physical systems like robots and drones, helping outsourcing providers handle workloads efficiently and intelligently.
Cloud-based technologies and CNPs
Cloud-based technologies enable collaboration on multiple levels, seamlessly, remotely, and securely on a cloud-based platform. More and more companies are shifting their infrastructure to the cloud, which means that outsourcing companies are increasingly offering cloud-based services.
With the cloud computing market set to reach $791.48 billion globally by 2028 with a CAGR of 17.9% (4), the growth of cloud-based platforms is an important trend to watch out for in coming years.
Progressive Web Apps (PWAs)
PWAs are web-based applications; but they provide users with experiences that are similar to using apps when the users are actually using a web browser. Users do not have to install any app on their system. PWAs combine the best features of the web and native applications, making the UI/UX design more intuitive and responsive.
In coming years companies will increasingly look towards software development services partners that can build this technology for them.
However, if you’re outsourcing IT, then managing contractors and partners can be a complex undertaking.
Ensuring they are all compliant and paid correctly is just the start.
You may also have to take into account things like changing legislation, worker classifications, health and safety training and obligations, contractor entitlements, and more. Then there’s documentation and record-keeping.
If you’re caught short the risks are huge. That’s why so many companies today choose to partner with workforce management specialists like CXC for advice about payroll and contracting, Government legislation, taxation, staff recruitment and even finding the right IT outsourcing partner for your business
To learn more about how CXC can help you with IT outsourcing services don’t hesitate to contact us today!