Since the spread of Covid-19, it seems like even the most resilient companies around the globe found themselves in financial troubles. With very few people predicting a pandemic, it was hard to imagine what would have happened if a deadly, highly contagious virus spread in almost every country on the planet.
However, there are industries out there that have managed to prosper amidst the ongoing crisis. Since early 2020, outsourcing has been one of these industries. Just like any other sector, there have been areas of the industry that have experienced disruption during the pandemic, which might have altered the expected trends for 2021.
In this article, we have combined some of the top Outsourcing Trends for 2021 that are worth keeping an eye on.
1. Cloud Computing
Approximately 90% of companies viewed Cloud as a digital enabler in their outsourcing quest. Here are some of the reasons why so many organizations use cloud computing:
- Helps reduce the businesses operational cost
- Gives the organization fast access to resources
- Boosts efficiency
- Secures data
In 2021, organizations all around the globe are expected to put further investment into cloud computing. This will prove extremely beneficial for outsourcing companies because many predict it will become far more mainstream, not only in 2021 but further down the line.
At present, cloud computing is worth $180 billion worldwide. However, the SaaS estimate they alone will generate around $113 billion this year. In 2023, experts believe the cloud computing market will be worth just over $600 billion.
Although cloud migration is often expensive and it can prove to be an extremely demanding process, this isn’t stopping more and more organizations planning to change from on-premise to cloud-based storage.
Nowadays, especially in the E.U. that enforce strict data protection laws, cloud computing is vital. Cloud computing offers a much-needed improvement when protecting data in comparison to on-premise storing.
2. Increasing Demand for Social Media Services
Whether you like it or not, social media services are a big part of many people’s lives. Businesses understand the importance, and how effective these platforms can be. Since the pandemic, there has been a major increase in the number of businesses that have outsourced content creation. Around 86% of B2B organizations used outsourcing companies to provide content and manage their social media accounts.
In 2021, you can expect outsourcing companies that offer social media management to be in serious demand. It is estimated that 97% of companies have at least 1 social media network, here are a few popular options:
Organizations use these social networking platforms to have a better communication line with advocates and stakeholders. If you are a business owner, whether it’s a small or big organization, the chances are you don’t have time to manage your social networking accounts yourself. In fact, it can be extremely time-consuming just managing one account which is one of the many reasons companies are seeking professionals to manage their social networking account.
During 2021, you can expect outsourcing companies that offer social media management to be in serious demand.
3. More People Working Remotely
Since the first outbreak of Covid-19, just under half of the United States employed population was forced to work remotely. Instead of commuting to the office each day, most people worked from the comfort of their own homes. Lots of people, especially those who have been in the same position at the same office for decades, found the change very strange.
In the outsourcing industry, working remotely was nothing new. The industry didn’t have to wait for workers to adapt to their new working environment because many were already working from a remote location.
In 2021, lots of organizations are expected to use outsourcing services that have the stability and capacity for working remotely.
Once the pandemic is over, it is unlikely that everyone will go back to working in the office. Plenty of employees have found that they are more productive while working from home and business owners can save money on purchasing or renting offices.
4. Expect more Small Business Clients
Before it seemed like the only companies that used outsourcing were large organizations and well-established businesses. This seems to have changed in recent years, and now experts believe that 80% of small businesses in America plan to outsource in 2021. Nowadays, small businesses and start-ups believe outsourcing can help their company get to the next level. Here are a few reasons why so many small enterprises are outsourcing these days:
- Reduce the amount spent on staff: To avoid having to fork out a vast amount of money on wages each month, especially on those who only work at certain times throughout the month, such as accountants or payroll experts, many businesses are outsourcing these jobs to professional contractors instead. There are plenty of contractors available that have the expertise to carry out these tasks, however, you will pay them a fraction of what you are currently paying. This will help keep the running costs of your operation down.
- Helps reduce the amount of money spent on I.T.: Jobs in the information technology sector are still the most outsourced jobs. Outsourcing jobs like disaster recovery, app development, and IT security can be scalable, which is one of the reasons so many businesses of all sizes are outsourcing lots of their I.T. tasks.
- Highly skilled people: Outsourcing work, often gives a business the opportunity to hire a person who has world-class skills. In recent years, there has been a huge increase in the amount of highly skilled professionals that are becoming independent contractors. For organizations that outsource work, this is music to their ears. They can hire someone or an organization that is based thousands of miles away, pay less than they did before, and still have the work complete to a very high standard.
Due to the high demand, it is expected that many outsourcing companies and individuals in the industry will focus solely on smaller-sized businesses.
5. Artificial Intelligence
To improve your businesses security and to help make it smarter, you might be considering implementing artificial intelligence into your company’s system. AI is a great way of predicting what customers will purchase what product, which is incredible information to have for any business. Things like facial recognition will help boost your business’s security. There are many reasons why so many organizations are implementing AI into their business, and there are very few signs suggesting this trend will slow down anytime in the near future.
The main issue companies have with AI, is that it can prove difficult to integrate it into the business’s existing systems. There are very few businesses that have a development team on hand that have the know-how when it comes to the likes of Python, C++, Java, and TensorFlow which are key when integrating and maintaining AI in a system.
Companies are worried if they don’t hop on the AI bandwagon soon, they might fall behind, which in many cases is true. In 2021 and in the coming years, experts believe there will be huge growth in outsourcing AI tasks.
It seems like outsourcing is going to get even more popular over the next few years. With the damages caused by the pandemic to the economy, it is no wonder so many businesses are looking for ways to help reduce operating costs. Some outsource workload just so they can keep their heads above water. Hiring highly skilled professionals can improve the company’s focus and bring the business in the right direction.