Growth is always a welcome development for most businesses. However, rapid growth will inevitably hit a plateau that can stunt your venture’s earning power. One business practice you can consider to prevent this is business process outsourcing (BPO).
While expansion is one of the main reasons companies have tapped the services of various outsourcing agencies, there are other perks that come with hiring such services. Ultimately, the efficiency they can provide for the costs they incur can significantly help your company’s bottom line.
Unlike other fields that were hit hard by the COVID-19 pandemic, global outsourcing industries have experienced remarkable increases in their businesses and received positive projections in the coming years. In this article, we will provide you with relevant outsourcing statistics for a clearer picture of the current and future state of the dynamic outsourcing industry all over the world.
While the global health crisis has limited the growth of some businesses, the outsourcing industry has seen significant changes that are projected to carry through in the years to come.
In 2019, the industry’s global value hit the $92.5 billion mark. With strong optimism for the field’s future direction, a Grand View Research study estimates it to expand to $405.6 billion come 2027 at a CAGR of 8%. This leap shows how more companies are starting to see the value outsourcing can bring to their business, even when everything goes back to normal.
Even as the health pandemic affected the economy, the BPO industry in the Philippines saw a revenue increase of 1.4% in 2020, recording a $26.7 billion total. According to the IT and Business Process Association of the Philippines (IBPAP), the climb reflected the efforts of BPO companies to ensure continued operations amid the global health crisis.
In terms of employment rate, BPO establishments hired 1.8% more people in the same year, resulting in 1.32 million direct employment in the country.
Even before 2020 changed the way businesses operate, companies in the United States have always been the top subscriber to BPO services. It’s not unreasonable to think the same thing rings true today, as at least 68% of American companies still rely on third-party contractors to do some of their work for them.
Interestingly, as the top digital nation in 2021, the United States is among the largest supplier of online labor in the world. In their rising gig economy, 16% of Americans are reported to have earned money from an online gig platform.
Many businesses closed due to the pandemic, so retaining customers can become a tough task to accomplish. The numbers paint a different picture, though. Call centers increased their volumes by 14% in 2020 to meet customer demand. Moreover, over half of all businesses partner with a third-party customer support business in 2021 to enhance their customer experience.
A Salesforce report reveals that at least 84% of customers stay because of loyal customer service. Additionally, companies that invest in customer retention initiatives by at least 5% see their profit rise between 25-95%. These statistics alone make call centers a vital component of your business strategy.
Not many companies have fully recovered from the pandemic’s impact on their coffers due to the current global economic situation. As such, at least 70% of companies that use outsourcing services attribute their decision to reduce costs.
Meanwhile, flexibility (40%) and speed to market (20%) are the second and third most important factors businesses consider when opting for an outsourced partner for their operations. Other attributes like access to tools and processes and agility (15%) are also included on the list.
Aside from video conferencing tools, the pandemic also highlighted the importance of cloud servers to hold crucial files during a remote setup. Data shows that more than 93% of businesses are considering or have already implemented cloud technology as part of their processes.
As it allows for more effective and efficient work, a third of all companies are willing to increase their operating budget if it means getting better-outsourced support.
The outsourcing industry long held the reputation of only handling a company’s customer service needs. However, 2021 was a different tale as more skilled labor is being outsourced by companies worldwide.
According to a Clutch study, 27% of small businesses outsource their IT work. This can be attributed to the technical nature of the work that some smaller companies have no resources to build themselves. Furthermore, the report shows that 23% relegate their finance operations, 21% want a third party to handle their legal needs, and 20% tap another company for their marketing work.
Most small businesses will outsource work to get a more efficient workflow. In fact, 24% of business owners opt to outsource for this reason alone. An increase in efficiency means spending less time delivering products and services to make room for other tasks.
Efficiency isn’t the only reason most enterprises tap outsourcing companies, though. Some want to get expert help (18%) on their processes, while others use such services to provide more flexibility (16%) to their work.
Although once aloof to the concept of outsourcing, the IT industry is now becoming more receptive to such work. Today, at least 44% of chief intelligence officers welcome the idea of outsourced teams handling some of their tasks for them.
Functions that have to do with software application development make up most (64%) of the field’s outsource requests. Meanwhile, technology executives delegate application and software maintenance (51%) and data centers (40%).
Amid the COVID-19 pandemic, Asian countries remain at the top of the outsourcing list, specifically India and the Philippines. The two countries are the world’s most preferred outsourcing hubs for different services. India specializes in IT and software development, while the Philippines is better known for customer service and back-office work.
Outsourcing has long since shed its customer service roots and is now an asset for big and small companies. With this list of strong facts and figures as a basis, you now have a snapshot of the industry’s potential moving forward.
In case you’re looking for a call center outsourcing partner to scale your business, there’s no better place to go than Executive Boutique Call Center. We are a team of highly-skilled customer service specialists that can provide you with optimal results to increase your bottom line. Get in touch with us to learn more.
Publish Date: February 14, 2022
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