Thursday, September 22, 2016
As a delegating practice well known to successful entrepreneurs, business process outsourcing has been one of the biggest market trends over the past few years. Global competition, mobile technology and the rise of the free agent have been some of the major factors responsible for this phenomenon, and as predicted in the early 2000s, all of them have led to the rapid rise of the BPO industry.
With a growing number of well-calculated executives and managers joining the trend, business process outsourcing continues to spur new models – in addition to old variants such as crowdsourcing, the 21th century has welcomed newer, more socially aware and comprehensive concepts like impact sourcing and knowledge process outsourcing as well. So far, the increased popularity of BPO activities has made the industry’s contract values reach their financial peak, with 36 billion dollars earned a couple of years ago, and in 2015, the number of outsourced jobs increased to 2,382,000.
Instead of having to hire new staff members and to reorganize an already functioning infrastructure, the majority of United States businessmen now leverages the potential of specialized freelance talents provided by BPO suppliers and online services. Benefits of such practice are various and all equally significant for further improvement, and businesses that have outsourced a part of their operations have all reported increased organizational capacity and staffing flexibility, improved performance and cost reduction, as well as operational revenue growth and competitive advantage.
With IT sectors, accounting, finances, human resources and customer services still on the top of the BPO chain, and China and India competing for the title of the best outsourcing destination, little is expected to change in the years to come. A vast number of outsourcing contracts has already been proven as successful and extended further, gradually becoming prolific long-term collaborations. Like those, BPO suppliers have also drastically improved their service, which now includes management consulting processes as well.
If predictions of global market analysis are correct, the BPO industry in the United States is expected to reach 220 billion dollars by the end of 2020. Taken together, the advantages of outsourcing strategies promise a steady growth in the future, and not solely due to cost reductions and increased efficiency – the decrease of business risks, lowered product development cycle, innovative solutions, access to expertise and new technologies and better analytics are all equally important motives that drive entrepreneurs toward outsource service providers.
The concept of business process improvement that suggests new operational models and further technological automation remains a primary force of outsourcing, and will continue to demand comprehensive, sector-specific and high quality services. In the following years, outsourced service providers will therefore be compelled to additionally boost their traditional services, as well as to include analytics and big data services, cloud infrastructure, social media technologies and robotic process automation to their current offer.
Until then, the BPO industry will proceed with what’s been achieved so far, and constant practical innovation, long-term partnerships and value-added services that this practice provides will certainly reshape for the better, if not entirely transform, the future of business.
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