Did you know that currently, the outsourcing rates are at their highest percentage from the last 5 years? The official study on Outsourcing Statistics for 2017/ 2018 found out that budget dedicated to outsourcing has increased from 10.6% to 11.9% in the past year! This means not only that the number of outsourcing companies has increased, but also that they outsource more and more activities and departments. Read below to find out more about the future of outsourcing.
The most commonly outsourced activities and departments include IT security, disaster recovery, network operations, help desk, desktop support and recruiting. These are all areas which require specialization but are not core to the business. In addition, those costs have the biggest potential to be reduced through outsourcing. This is why many companies decide to outsource those and many more will do so in the future.
The size of the company matters as well: larger organizations are increasing their outsourcing budgets in the past 1 year the fastest (from 6.3% to 8.7%). Smaller companies have increased theirs from 6.7% to 7.8% and mid-size companies from 4.7% to 6.5%. The trend is that more and more budget is dedicated to outsourcing, no matter the size of the company.
Furthermore, being an outsourcing company makes a lot of sense to service providers due to “economies of scale”. Those companies can offer cheaper prices and cost savings because they specialize in only one set of services. Thus, they can also offer better quality compared to having a small department in-house performing the same activities.
However, the demand for outsourcing is increasing and so is the supply. The number of outsourcing companies is souring. Therefore, sometimes it can be difficult for companies to decide which outsourcer to chose. Factors, such as not speaking the language or not having experience in the country where the outsourcing company is based, complicate matters even more. One way to combat this is, you guessed it, customer reviews. Customer feedback is becoming more and more popular among outsourcing companies. It is a way for them to show that they are trustworthy and experienced. By displaying their customers’ reviews, an outsourcing company can attract new customers and easily get new business. It can also demonstrate that they are used to working with companies located in different countries and can handle all the cultural implications which are connected to this.
Outsourcing is now a global phenomenon and it is here to stay. However, the outsourcing model is changing: companies are nowadays not only looking to cut costs, but want reliable, qualified partners who will provide outstanding quality. This is why outsourcing companies need to differentiate themselves by investing in customer feedback management and customer success. In 2019 and beyond, we will see more and more outsourcing companies emphasizing their positive customers’ reviews. They will be striving to build trust and loyalty with their clients because strong partnerships are the key to outsourcing success. In fact, Customer Feedback is the new king in the outsourcing industry!