Will outsourcing stay as the best business strategy? Find out what’s in store for outsourcing in 2018.
Outsourcing continues to be the best business strategy over the past two decades. Through it, companies are able to boost productivity, upscale or downscale at any given time, and cut operational cost to as much as 70%. It’s no wonder outsourcing companies expect their clients to increase dramatically in 2018.
Speaking of 2018, it’s a new year, with new goals and new challenges. What’s in store for outsourcing in 2018? We’ve compiled a list of the trends in outsourcing from the experts.
Here are 6 hot outsourcing trends to expect in 2018:
1. 2018 Won’t be a Stressful Time for Outsourcing
Since Donald Trump was elected in 2016, he has made it clear that he is against companies that continue to outsource jobs. But this didn’t stop big companies from outsourcing their business tasks. In fact, the Department of Labor has certified that more than 93,000 jobs as lost to outsourcing or trade competition, slightly higher than the average of about 87,000 in the preceding five years. The reality is that the president has little extent in federal contracting law to prevent companies, even those hired by the government, from shifting jobs overseas.
2. Skill Shortage Will Still be a Problem
Unfortunately, the issue of skill shortage is going to remain unsolved, and probably worsen. Outsourcing companies will have trouble finding the experienced staff they need due to the education systems of the developed countries, being not unprepared to cope with the demand.
3. More Focus on Security
Due to the advent of Internet of Things (IoT) and telematics, security risks have become widespread in outsourcing which is why experts predict that more businesses will focus on security risks in 2018 and beyond. According to an outsourcing survey by Deloitte, 64% businesses are planning to focus more on defining security protocols or security risks.
4. Quality over Price
Businesses outsource mainly to reduce cost but paying less can sometimes also lead to poor quality of work. Businessmen will be smarter, agreeing to pay more if the price is justified and they get high quality. Striving for excellence is the key to success.
5. Rise of Cloud Computing
More companies will embrace cloud-based technology in 2018 for two main reasons: high-quality and cost-effective services. There will be more more business opportunities for BPOs, ITOs and cloud service providers because of the evolving trend of cloud computing.
6. Vendors Will Offer More Flexibility
Vendors will bid farewell to offering packages at affordable prices to their clients, but instead focus on adjusting to meet diverse client demands. This will help them to penetrate deeper in the niche market.
Outsourcing will not only survive but prosper in the year 2018 because it continues to evolve. With so many great things in store in the future of outsourcing, one thing is for sure, more companies will be attracted to give outsourcing a try.
Start the year right. Outsource your business tasks to Booth & Partners! Contact us now.