Business Solution Providers: The Future Of Outsourcing

In this technological era, is it time to rethink outsourcing to gain key business advantages? An increased number of organisations are taking this route for cost reduction, agility and other reasons. Statistics reflect this tendency in a survey conducted by Deloitte that reported companies are spending more and more money on outsourcing; 67% of executives surveyed noted an increase in their operating services budget, 57% said they spent more money on managed business services, and 32% increased their budget on traditional outsourcing. Due to fluctuating economic conditions, changes in the job market, and new technologies impacting workflows and processes, the demand for outsourcing services is expected to continue to grow.

To promote favourable conditions for growth and success, many companies focus investments on core competencies and excelling in these areas to achieve improved results. This extends to optimising resources and personnel for financial efficiencies. However, it is challenging to apply effort and expertise across all areas of the business. One significant shift that a business can make is outsourcing. By tapping into the knowledge of a specialist company to execute important tasks can help drive business transformation and success. Such domains of expertise may extend across accounting, marketing, customer services or technology services.

Outsourcing however, notably in the early days, has been associated with a negative perception often related to low-cost labour and low quality. Technical advancement has enabled an evolution in the industry. Modern outsourcing service providers are positioned to offer complete functional and industry-specific solutions for the benefit of their clients. Generally, such advantages include scale, gaining efficiencies or unlocking growth. Further, outsourcing service providers have become known as business solution providers (BSPs) moving from the back office into companies' middle and front offices. This is an important shift for BSP’s from executing at an operational level, to partnering with the C-Suite as an integrated strategic partner.

We at Arringo are part of this major industry shift, as a business solutions provider that takes a modern approach to the outsourcing industry. Our teams deliver various services for clients such as customer services and back office support. To fully customised solutions in the areas of compliance, quality assurance or software development. We have experienced significant growth in the demand for IT outsourcing solutions, as companies require specialist expertise to create digital tools, or processes to efficiently solve complex problems.

To further meet the growing needs of clients at Arringo and improve outsourcing capabilities, we expanded the global footprint in different countries to provide 24/7 scalable operations and gain agility. As well as built on digital capabilities to gain process and cost-efficiencies.

Overall, the future industry outlook appears positive as more organisations are outsourcing part of their operations where cost reduction is the top priority, per a report by Deloitte. Due to economic conditions, also, considering the radical shift in job markets and work processes, largely driven by technological change, the outsourcing industry will continue to transform. Such changes may include the geography of where in-demand talent, for example software skills, and expertise can be sourced. This may then upend where outsourcing companies traditionally have prominent hubs, to emerging markets. These countries are expected to significantly shape the outsourcing landscape.

Other contributors to industry shifts are prompted by Increased automation, particularly through robotic process automation (RPA) and artificial intelligence (AI). Both are key determinants of future trends in outsourcing and are expected to significantly impact daily life. Integrating virtual agents and bots is expected to streamline routine tasks across industries, with AI assistants evolving into powerful tools beyond smart speakers. This automation trend in outsourcing is set to reshape the job market, creating new roles that demand expertise in managing advanced technologies.

Whether a company is committed to pursuing in-house strategies, a hybrid model with outsourcing selective operations, continuously monitoring the business with outsourcing in mind can open up new opportunities. Future horizons could be significantly broader for companies that recognise the potential of the outsourcing model as a strategic partner to cost-effectively expand expertise, facilitate growth and enhance digital capabilities.