In its three decades of existence, the outsourcing industry has experienced exponential changes and growth from outsourced telemarketers to specialized roles such as graphic designers, IT specialists, and many more.
With that in mind, the world’s biggest companies would not be what they are today without outsourcing. Thus, giving them the flexibility to expand without hurting their budget. Outsourcing helps companies sustain their growth by reducing costs and gives them the ability to focus on core goals.
The global outsourcing industry is a $245.91 billion industry in 2021 and is expected to grow to $435.89 Billion in 2028. While the number of BPO companies worldwide is unaccounted for. In the Philippines alone, there are about 700 outsourcing companies. This growth is likely to continue in the years to come regardless of the challenges that may lay ahead.
This is why outsourcing is here to stay:
Outsourcing Remains Budget-Friendly
Companies frequently turn to outsourcing to reduce costs. Even though the pricing of services in outsourcing companies may vary. One thing is for sure, their cost-effectiveness makes it one of the best benefits outsourcing has to offer.
Examples of budget-friendly services offered by outsourcing companies include:
- Remote Staffing
- Seat Leasing
- Hourly and Projects Service
- Build A Company – Build, Operate and Transfer (B.O.T)
- Recruitment Process Outsourcing (R.P.O.)
On top of that, outsourcing companies offer bespoke services to their clients. This option to scale up or down their staffing needs and billable charges provides leeway for companies to leverage their budget savings to expand even further.
The insatiable desire to reduce costs will continue to increase the demand for outsourcing services.
Hiring Niche Talent
Finding the right person to hire in your company can be a daunting task, no matter what sector you are in. Mainly, if the role you’re looking for falls into what we call “niche talents”. Niche talent refers to a person with strong experience and expertise in a very specific field.
Examples of niche roles:
- Embroidery Engineers
- Layout Artist
- Sales and Use Tax Finance Specialist
As stated previously, numerous companies’ inability to effectively and efficiently hire has sought to outsource their recruitment to BPO companies. Meanwhile, BPO companies are more than willing to supply the increasing demand for companies to recruit potential candidates.
Outsourcing companies prefer to package services that will suit the needs and budget allocation of their clients. One example is Recruitment Process Outsourcing (RPO), this is a service introduced by outsourcing providers wherein, they offer companies to outsource their recruitment department to them.
Types of Recruitment Process Outsourcing:
- Contingency Recruitment – Emphasis on faster recruitment thus sacrificing quality over quantity.
- Retained Recruitment – Emphasis on the quality and expertise of the person to be hired.
- Contained Recruitment – Combination of Contingency and Retainer Recruitment.
- Custom Recruitment – This is a customized placement fee prioritizing the number of positions that need to be filled and the available budget of the client is taken into consideration.
In this day and age, outsourcing companies have made it easier to find the right talent.
Well-equipped to handle such tasks because of years of accumulated experience and their global reach on available talent pools is unequivocally in their favor.
The ability to quickly and effectively implement instantaneous solutions to meet the needs of their customers is one of the benefits of outsourcing. This adaptability was put to the test during the pandemic when outsourcing providers quickly moved their employees to work from the office into their own homes in a matter of days.
In my opinion, outsourcing companies’ adaptability can be categorized into three types:
- Contract Adaptability
Outsourcing companies offer remote staffing with bespoke solutions to meet the changing business and environmental needs.
2. Infrastructure Adaptability
Seat leasing is an option offered by outsourcing providers to lease out their infrastructure to clients who have their own employees but lack the facilities to accommodate them.
3. Operational Adaptability
Hourly and Projects staffing services are being paid per project or by the hour, you can easily scale up or down if your business needs less or more staff on a project, cost-cutting, or expansion.
Emerging Modern Technologies
Outsourcing companies are known to incorporate new technologies such as cloud computing, artificial intelligence, digital communications, and the latest trends that will help streamline everything from analyzing data, improving communication with clients, and minimizing the cost of doing business.
The Wrap Up
All that is said, the future of outsourcing looks bright but there would still be hurdles ahead. With the insatiable demand for reducing costs continues and the need for innovative and adaptable solutions in its constantly changing landscape will surely increase the demand for outsourcing services.