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December 2017 | Outsourcing Blog | BPO Industry Updates and Articles

More than decades ago, companies started outsourcing their business processes and functions to offshore locations, primarily to cut down on costs and focus on core business activities at home. Since then, the global outsourcing industry has come a long way.

Advancement in technologies has made it much easier to perform work from a remote location, and consequently, the offshore outsourcing industry has grown tremendously. Research studies have been conducted to provide insights and statistics on popular outsourcing destinations and the outsourcing providers that offer their services to customers from all over the world.

Outsourcing statistics

We've compiled the ultimate list of outsourcing statistics to help stay up-to-date with the trends. Check out this infographic and read on to learn more about the global outsourcing industry.

Outsourcing Statistics Infographic

The Global Outsourcing Industry

According to Deloitte's 2016 Global Outsourcing Survey, 78% of respondents claim that they feel positive about their outsourcing relationship.

When asked about the reasons for outsourcing, 59% of businesses cited cost-cutting as the primary reason, while 57% claims that it enables them to focus on core business functions. Another 47% of businesses claim that outsourcing solves business capacity issues.

Other reasons for outsourcing include the enhancement of service quality, critical to business needs, access to intellectual capital, business environmental management, and wider transformational change.

This is why more industries are outsourcing their business processes, especially IT and customer service. Outsourcing sectors include IT-BPO, healthcare and pharmaceuticals, energy, travel and transport, telecommunications, and media.

In KPMG's recent Global IT-BPO Outsourcing Deals Analysis, telecommunications sector consistently remains one of the top contributors to the outsourcing industry. It's because this sector is increasingly leveraging information and communication technology as well as social, mobile, analytics, and cloud technology.

Adoption and Revenue

Another study revealed that since the Great Recession in the United States, the country had outsourced more than 2.4 million jobs. In fact, 57% of companies in the United States increased their use of outsourcing, while 34% significantly restructured outsourcing agreements and only 9% terminated their outsourcing agreements.

When KPMG analyzed the deals closed in the first quarter of 2017, they found that albeit decreasing, the Americas is continuing to be a major outsourcing region that contributes 42% of the total deal value (from 68% the previous quarter). Of these, 41.5% came from the United States alone.

Meanwhile, the EMA (Europe, Middle East, and Africa) and ASPAC (Asia and Oceania) regions are not far behind and have increased their adoption of outsourcing. In the previous quarter, EMA contributed 27% of the total deal value, but during the first quarter of 2017, their contribution increased to 35%. Of this percentage, 22.07% of deals came from the United Kingdom.

ASPAC, on the other hand, contributed 23% this quarter as compared to only 16% in the last quarter. Australia and India were also identified as a key outsourcing market in the same report.

Since the advent of outsourcing, revenue has almost doubled. In 2000, the global market size for outsourcing was at 45.6 billion U.S. dollars and that number has continued to grow until it reached 88.9 billion U.S. dollars in 2015. However, the same source reported that last year, the global market revenue went down to 76.9 billion U.S. dollars.

Automation and Outsourcing

The global outsourcing industry has evolved, as automation technology is taking over much of business processes. Traditional IT-BPO offshoring models are evolving. In the past, operations of an entire business function are contracted. Today, specific services can be contracted and delivered across distributed environments in the world.

But, because automation is a relatively new technology, it still needs to be closely monitored. As a result, new jobs are created as human decision-making and critical thinking are still required in creative and more complex processes. These new positions require more advanced skills for the building, training, management, troubleshooting, and improvement of the technology. In effect, the demand for low-skilled jobs in offshore BPO companies is declining, and the demand for higher skilled workers that can manage and improve automation technology is rapidly increasing.

As such, new offshore positions are being created in rhythm with the trend of outsourcing higher-skill jobs, and creative tasks that cannot be automated is rising. According to MicroSourcing, the most common business processes that companies nowadays outsource are for small or one-time projects, photography services, administrative tasks and repetitive processes, accounting and bookkeeping, and graphic design projects.

The Philippines as a Top Outsourcing Destination

Because SMAC and automation technology is rising, A.T. Kearney took digital competence in consideration to identify the top outsourcing destinations in its Global Services Location Index (GSLI). Along with this, they used 38 metrics surrounding financial attractiveness, people skills and availability, and business environment. In this GSLI, the Philippines ranks as the 7th best offshoring landscape.

Meanwhile, the Tholons Services Globalization Index added digital innovation this year as one of the metrics in coming up with the top outsourcing destinations in the world. It places the Philippines 3rd on its list of top digital nations. Manila is also ranked 4th on their list of top super cities.

These rankings confirm that the country is holding steady as an industry leader in outsourcing. As one of the world's largest English-speaking nations with a 95% literacy rate, the Philippines is an undisputed leader in customer service and BPM (Business Process Management). In fact, 16 of the top 20 offshore call center projects in 2016 were located in the country.

More importantly, the Philippines is gaining ground in high-value fields including legal-BPO and engineering. The country is constantly updating the skills and knowledge of their talent pool to keep up with the evolution of outsourcing trends and automation technology.

Final Words

Digital forces such as robotics, AI, cloud storage, social media, mobile technology, and big data are shaking up the traditional model of outsourcing services. As such, the global outsourcing industry is becoming increasingly competitive, with Canada, Chile, Israel, and Brazil disrupting its landscape. Outsourcing companies and third-party providers need to innovate and re-invent their services to keep up with evolving demands.

At MicroSourcing, we enable organizations and enterprises to get the most value for their money and grow their business exponentially in response to today's digital demands. Whether you're a startup company or an established enterprise, we make sure to offer a strong outsourcing option to help your business thrive.


Your Guide to Outsourcing Content Creation

by: Sidney Liquigan

Thursday, December 7, 2017 | Comments (0)

Category: Outsourcing Research / Trends

The first step to making a name for your business is gaining an audience through engaging content. People will trust and follow your content if it is professionally done, relevant, and substantial. It takes more than just knowledge about the topic to create effective content; it also takes expertise and the right tools and resources.

Outsourcing content creation helps you focus on growing your business while leveraging high-quality content at affordable rates. And as people become more reliant on the internet for information, the more it becomes necessary for brands to produce creative, engaging content regularly to cut through the noise.

In order to get the results you want, it is important to understand the ins and outs of outsourcing content creation.

Why you need to outsource content creation

It goes without saying that outsourcing, in general, is a strategic way to save time, resources, and energy that you can allocate on improving key business operations. But that's not the only reason why outsourcing content creation is a blessing to business owners.

SEO standards require websites to have regularly updated content. It's already time-consuming and tedious to research and create content on a single topic, what more if you have to do it on a regular basis. Furthermore, the frequency, topics, and the order they are published require strategy. Outsourcing to content specialists means you get access not only to the right skills but also to insights on the latest SEO standards and other online best practices that will help your content get the boost it deserves.

Content that you can outsource

Blogs

The best way to produce fresh content regularly is through blogs. Blogs are also a great venue for marketing your services, products, and promos in different approaches. Outsource blog management to get professional help from topic and keyword research to blog writing, publication, and promotion.

Articles

While blogs are more casual and conversational with the primary purpose of creating relationships with the readers, articles, on the other hand, are more formal and less dynamic but can be as effective when they adhere to SEO standards, can hook the readers, and present the right information in the best way. Articles include content in magazines and newsletters. They are mostly informational and are based on facts, data, and research.

Lead Generation

Lead generating content is content that has the goal of generating leads and increasing conversion. This type of content is seen in ads, landing pages, e-books, and white papers. Beyond getting your audience hooked and interested, lead generation has the crucial responsibility of getting the readers to actually take action, whether it is to contact you, to subscribe, or to make a purchase. It takes special skills and techniques to produce persuasive content, especially when you only need a few words to deliver your message.

Social Media

Social media is a powerful platform for networking and promoting your business. To have a successful social media presence, it is not enough to create engaging and relevant content. You should be constantly online to respond to inquiries and communicate with your audience through the comments section. Along with creating content adhering to each social media platform's standards, outsource your social media management to third-party providers that can also manage your social media community and can understand analytics and insights to come up with more audience-centric content.

Web Content

Having a website establishes your existence in the World Wide Web. A website makes it more convenient for people to find more information about your business and what you offer. SEO writing experts know that effective web content is not only creative and valuable but also goes well with the web design in terms of structure and typography, to provide a seamless user experience.

Visual Content

A successful online strategy involves delivering your message through powerful, emotionally captivating visuals. A company's credibility is also manifested in the quality of its visual content. There are outsourcing companies and creative agencies that offer graphic design, animation, and video editing to help you with your campaigns.

Before outsourcing content creation

All types of content serve different purposes. Before outsourcing content creation, there are a number of considerations worth finalizing.

Goals and values

You should first define your company's mission, vision, and values which will then help you identify what your content should achieve and the approach it should take.

Tone and voice

Establish a style guide for consistency in branding, design, message, and the tone and voice that your writers should use when creating content for your brand.

Buyer persona

You create content for your audience; know more about your audience and customer base from which you will base your overall content strategy. Your buyer persona will help your content strategy to have a clearer direction and goals.


6 Factors to Consider Before Outsourcing Development

by: Sidney Liquigan

Tuesday, December 5, 2017 | Comments (0)

Category: Outsourcing Research / Trends

Outsourcing parts of your business functions can significantly improve productivity and efficiency, as well as reduce costs. According to a research by IBM, companies outsource to cut costs (27%), for innovation (36%), and for growth (37%), making outsourcing part of their business plan as a tool for optimizing their businesses and more than just as a way to get affordable deals.

One of the most common jobs that startups, small- and medium-sized businesses, and big companies alike outsource is development. This can involve web development, software development, or app development.

Before outsourcing development

Depending on the nature of your business, and depending on what role development plays in your goals, it can be a crucial aspect to outsource. Before outsourcing development, it is important that you know the important factors to consider.

Choosing the right outsourcing provider

Once you have chosen the right outsourcing provider that has the skills and resources to perform the job, everything will fall into place. So it is important to have that part carefully planned. It is ideal to have more than one potential partner and conduct due diligence on each candidate. Consider their respective pros and cons to help you decide the best development service to go with.

Keeping up to date with technology

Continuous advances in technology mean standards also change and become more demanding. Make sure that your developer uses the latest tools to make the developed app, software, or website more optimized and the development processes more efficient. Your developer should also always adhere to the latest technology standards to ensure that your project never goes outdated. These standards generally include having a responsive design and a mobile-friendly interface.

Constant communication

When you work with others, especially with offshore outsourcing companies, communication is a critical part of the process. Development projects are purely technical, so there should be a guarantee that you have seamless communication with your developer even after the project has been completed. It is likely that your outsourcing partner is in another time zone; be aware of the time zone difference and set up a plan on how both parties can communicate more effectively.

Protecting your intellectual property and legal rights

Be aware of the legal considerations that come with outsourcing development. Protect your business and secure your intellectual property by creating limitations. Have your outsourcing partner sign contracts and non-disclosure agreements. Seek legal advice to guide you through this process.

Getting involved

Outsource development to a company that allows you to have control over the development processes. It is not ideal to be only interested in the end product; always get involved with your projects by at least getting regular updates to monitor progress and to make sure that the outsource tasks are on track. By providing your input and communicating with your outsourced developer or development team, you'll learn more about your project that will help make smart decisions.

Getting your money's worth

Outsourcing is worth the investment. In the long run, the benefits will start reflecting in your cash flow as well as in the efficiency of your operations. Make sure that you get your money's worth by outsourcing development to developers or companies with the right skills, experience, and tools you need for your development project.

These are just some of the factors worth considering when you choose to outsource development projects. The main takeaway here is to have the right knowledge and know the best practices for what you are getting into. For tasks that require specialized skills, such as development, it is best to turn to experts. Working with outsourcing companies to find the right one for the job is a worthwhile solution.