The aftermath of the COVID-19 has ideally taught us the perks in gearing up the wheels on the roads of digital transformation. For sure, in spite of emergencies, natural calamities, or other unprecedented times, technology might help your business circumvent the situation. 

As days and years roll out, trends in every sector keep changing, for which ‘outsourcing’ is not an exception. Infact, the BPO market which was valued at $232.32 billion in 2020 is expected to witness a CAGR of 8.5% from 2021 to 2028.  

In this blog, we suggest you watch out for these IT outsourcing trends and statistics that are going to create a massive transformation in businesses belonging to various industries. 

Without any further ado, let’s get into the blog post. 

1. What is IT Outsourcing?

We don’t want you to directly dive into the trends, let’s begin from the first square. 

As outsourcing gives access to work with experts in different fields, reputable brands like Google, Apple, Facebook outsource to vendors for their work.

IT Services that can be Outsourced

And many more…

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IT Outsourcing Models    

These outsourcing models, unlike the types of outsourcing, solely represent the nature of collaboration with the vendor.

For example, you may be a startup looking to develop your business, the project-based model might not be a right option for you, therefore, based on your budget and requirement, opt for the right outsourcing type and engagement model. Many businesses fail as they outsource vendors without considering their requirements.

2. Too Many Advantages of Tech Outsourcing to Your Business

Handing over the digital transformation of your business to any third party agency is not something easy. You may be alarmed by security issues, delivery risks, delayed deliveries, hidden costs, quality issues, and others.  

No need to panic. All these challenges can be minimized with the below advantages. Infact, more than 78% of businesses in the world are satisfied with their outsourcing partners! 

• Opportunity to collaborate with a pool of experts in the field
• Focus on other business activities leaving all the IT-related operations to the outsourcing team
• Costs less than in-house team development
• High performance – You outsource professionals from single/multiple regions. Each country has a different time zone, even while you’re sleeping, your partners will be awake in their daytime and it’ll look like your IT operations are carried out round-the-clock
• Minimum Viable Product (MVP) is properly tested and verified by outsourcing professionals 
• Better access to high performing software and IT products 
• You don’t have to worry about security issues, your vendor will provide disaster recovery and security solutions as well 

Forbes Technology Council has written a blog post on when you can opt for outsourcing your IT operations, to learn more on this, click the link.  

3. Technology Outsourcing Services Trends & Future Predictions

Reported from Statista

After exploring the advantages, now you might have made a decision to outsource to an IT vendor, in that case, it’s your obligation to stay updated on the current trends in the outsourcing industry. 

Without any delays, let’s get into the nucleus of this post. 

Robotic Process Automation (RPA)

Generally, machines perform operations according to what they are commanded of, mostly, repetitive tasks. Gone are the days, when staff spent hours-together on certain mundane operations that were piled up on the desks. 

What is Robotic Process Automation (RPA)?

You might have a question, so, will this tech-enabled software leave humans jobless? No, it’s not like that, RPAs will just minimize the manual workload and assist in the workstation. For example, the average time spent on responding to a customers’ simple query by humans and RPA-powered virtual chatbots – For a programmed bot, it’s just a matter of minutes.       

This time-saving concept will enable your outsourcing team to work on other core-related challenging tasks like strategy development, relationship building, and decision making.  

RPA in Outsourcing Statistics

Considering the efficiency, less time consumption, streamlined operations, and accuracy rate, both businesses, and outsourcing providers are likely to embrace RPA. Implementing this tech on your own will be overwhelming and break your pocket. This is when you can outsource to an agency that provides RPA as a Service. 

Blockchain Technology

Blockchain tech is a decentralized ledger that can store information in blocks forming a chain enabling every user to access the data without any centralized controls. 

In simple words, Google Docs is a perfect example of the technology used in blockchain. You create a doc, share the doc with your peers – It’s not copy-paste content, the doc is just distributed among those who have access and all the changes would be saved globally.         

Owing to the myriad security measures, transparency of data, accessibility, blockchain is not only a vivid technology for cryptocurrency businesses, but businesses of almost all the industries including IT, finance, trade, e-commerce, real estate, healthcare are likely to implement it for their digital transformation.

Infact, governments are introducing new laws to show their support in blockchain promotion, Arizona government has legislated that signatures secured through blockchain technology are approved under state law.

Machine Learning(ML)

Oh wow! How fantastic is the tech? Now machines analyze your activities, understand your likes & dislikes, and provide you with the best-satisfying results! Yes, you’d read it right, a machine does all these… 

For example, imagine you’re watching an insightful video from ColorWhistle’s YouTube channel – How Pricing is Determined in Outsourcing Digital Services? 

At the end/below the video, you would get recommendations from the same/different channel something relating to outsourcing. This is the same case while watching a series on Netflix, which helped them to save more than $1 billion. 

If you want more clarity on this, then look at what high-profile brands like Google, Amazon, Microsoft, and Facebook say about ML tech.  

What all ML can do for Your Business? 

• Recognition of Images: Allows to analyze objects & features of images pixel by pixel. Every piece is validated forming a network of insights obtained based on cohesive analysis
• Social Media Analysis: Helps to understand not only the words but the context behind customer feedback, track their brand health, and improve reputation on Facebook, Twitter, Instagram, etc. 
• Smart Assistant: Recognizes, collects, and analyses users’ voice inputs, looks for logic in between the phrases, and processes the request to provide the best outcome. Have you used a virtual assistant chatbot for clarifying your doubts? How was the response? Do share your experience in the comments below.    

• News Feed Recognition: Reads through various news articles and provides the relevant results according to user interests, recognizes fake news by comparing the information with legitimate articles 
• Video Surveillance: Using complex algorithms, under human supervision, the system will learn to spot human figures, cars, and other suspicious objects, then later without human supervision
• Search Engine Optimization: Analyzes the search statistics and understands user interests  
• Email Optimization: Helps to detect spam and fraudulent activities by comparing legitimate emails with spammed ones 
• Speech Recognition: The system learns to recognize different new words, idioms, slangs, and phrases of users   

“Computers are able to see, hear and learn. Welcome to the future”

Dave Waters

Internet of Things (IoT) 

You might have heard about use cases of Internet of Things (IoT) devices in home appliances, manufacturing businesses, automobile industries, healthcare industry, and in many sectors – Turning Everything Smart! 

But, you might have a question like – how is it going to work for the digital transformation of my business? This section can answer you in this regard.

The Internet of things (IoT) is nothing, but a system of interconnected computing devices, mechanical and digital machines holding unique identification codes (UIDs) that can exchange data with other systems connected over the internet. 

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How IoT can Transform Your Business Digitally?

• Inventories and assets tracking & management – Amazon uses WiFi robots to scan the QR code on the products for tracking purposes
• Prediction of customers’ needs on data analysis – Big Ass Fans introduced smart fans with light, speed, and temperature sensors. Depending on the users’ mood, the fan speed will be tailored 
• Acquiring real-time insights – In livestock, the ranchers use IoT devices and collect the data about the well-being of the cattle in real-time
• Omnichannel optimization – AWM’s Smart Shelf is built with high-definition optical sensors and edge displays to showcase the price details and other information of the products 
• Boost productivity rate – IoT powered SmartDesks offer an optimal workstation for employees to work productively as well as from their comfort-levels    
• Customer experience – In Mercedes Benz’s Mercedes Me Connect cars, customers are allowed to connect with the world via modern sensors and technologies. Have you ever traveled in a self-driving car? Share your experience in the comments section.    
• Meet customers’ new demands – Panasonic IoT-enabled futuristic refrigerators which notifies you of the fridge conditions, grocery item stocks, etc. 

Outsource to an IoT service provider and experience all these perks in your business as well!

Artificial Intelligence (AI)

• “AI-powered cameras can spot shoplifters and alerts staff even before they steal”
• “AI can predict the next time when does a COVID-19 patient may need a ventilator by analyzing their symptoms and traits”  
• “Big cities in the USA, Canada, and the UK have introduced a self-driving taxi service exclusively for physically-challenged people”

AI-powered systems can do all these, also more than these with great results in the real-world. This might astonish you, AI is not a technology introduced today or yesterday, it’s been there since 1956. 

It’s not like AI is going to pluck job opportunities from your hands, instead, AI-powered robots, software, and systems will just gear up the process, enhance efficiency, and help you go on errors-free. Many B2B and B2C companies are already experiencing it. Then, how will we ignore AI tech in our outsourcing trends curation?   

Applications of AI Tech in Businesses 

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Countries that are the Best for IT Outsourcing

After thoroughly researching the regions to outsource IT solutions, we’ve curated these countries below. 

• Europe & Eastern Europe – Ukraine, Poland, Bulgaria, Belarus    
• South America – Mexico, Colombia, Peru, Argentina    
• Asia – India, China, Indonesia, Malaysia 

Before partnering with an IT outsourcing service provider, make sure they’re either aware of these trends or apply these in various businesses. We’ve written a detailed blog on – How to work with website outsourcing agencies? Do give it a read! 

No matter what, at the end of the day, it’s all about customer satisfaction. If you’re not meeting the expectations of your customers, then you’ll be lost! One best options to satisfy your customers is through implementing trending technologies in your business. 

With the help of outsourcing vendors, you can also kickstart your game. We’ve been in this digital transformation field for over 15+ years, and as far as we’ve noticed, we feel – India, to be the budget-friendly destination to outsource your digital services.       

ColorWhistle Technology Services, an Indian-based outsourcing consultant can be the backbone of your business. We offer website design, development, digital marketing, and specialized social media design services, available both as white-label and outsourcing services. If you like to take this call further, do give us a call at +91 (944).278.9110 (or) send us a message. 

Would you like to know what all the digital services we offer? 

To elaborate on these services and our consultative approaches, you can check out the homepage of our website. 

Did you find this blog post useful? Would you want us to add any more outsourcing tech trends to this list? Do tell us in the comments.