Software development

9 Trends in Outsourcing for 2021 and Beyond

Furthermore, the global outsourcing industry is continuing to adapt and grow in response to the challenges of the present, and BPO providers are becoming more agile, flexible and adaptable to meet high demand. To facilitate seamless collaboration, companies are building global teams and developing agile, highly responsive ways of working. However, over 60% to 65% of strategic partnerships end in failure, often due to unrealistic expectations, inability to reach a consensus on objectives, and insufficient trust or communication. For these reasons, outsourced partnerships should always be based on transparency and open communication, with clearly defined goals and expectations from both parties.

Moreover, this kind of loss can have a negative impact on the future of the outsourcing firm. Organizational competency loss can be identified as intrinsic risks of atrophy since all the risks are shown up after outsourcing behavior happened. The talent loss situation from Intrinsic risks of atrophy can lead to opportunistic renegotiation due to the outsourcing firm heavily relying on the supplier. Intrinsic risks of atrophy referred to after the outsourcing decision was made, the outsourcing firm will lose the professional whose expertise in the outsourcing activities.

Multiple specialties, one outsourcing company

Developing web apps is easy since developers don’t need to work on complex code. Rather they use a simple interface or low code platforms to deliver these types of applications. Businesses can now achieve their goals faster and meet their client’s demands. PWAs are web applications that provide users with an application-like experience using a  web browser.

  • Companies will also benefit from such a contract as it will allow them to get an in-depth assessment of the possibility of any future outsourcing relations.
  • Simply put, the buying organization turns its focus to managing the business with the service provider, not just managing the service provider.
  • Writing for InfoQ has opened many doors and increased career opportunities for me.
  • Full-service HR software can solve this by increasing functionality and…

In addition, Williamson’s Transaction Cost Theory [27] presumed that the most advantageous economic organizational structure is the one that was minimizing the transaction cost while maximizing the profit. Williamson defined Transaction Cost as the cost which summarized all the cost to make a transaction except production cost. However, between the 1970s and 1980s, academics continued to discover that the conglomerate firms were under-performing in the market [23, 24, 25].

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What IT outsourcing trends will shape partnerships between vendors and clients? Here is everything you need to know about IT outsourcing as a great way to thrive in the new normal. IMARC’s information products include major market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial, and high technology organizations.

As the world becomes more interconnected and the global economy continues to grow, it is crucial to stay up to date on the latest trends and predictions for the future of global outsourcing. In this article, we’ll explore some of the emerging trends and predictions that are likely to shape the future of global outsourcing in 2023 and beyond. Now that you’re aware of the top outsourcing trends for 2021 and beyond, your next step is to find a reliable BPO company that can help you meet your specific goals. From IT outsourcing to call center solutions, SuperStaff can provide them all.


Building on the past year’s responses, companies are adapting their outsourcing strategies to get a bigger bang for the buck. Other platforms in the ‘gig economy’ such as Fiverr allow people to do a sort of micro-outsourcing, getting individuals to perform tasks one gig at a time and only paying as they are used. This is changing the world of work, but also changing the way that companies set up.

trends in outsourcing

Maybe cloud computing will be a little user friendly than service automation when it comes to the feeling of use. An immoral cloud computing service supplier may get involved in the data breach and identity stolen in such a condition. However, the service automation outsourcing firm will experience the same harms as cloud computing service plus the company’s core strategy or the newly developed technology got duplicated or stolen. AI and PA are also expected to have a major impact on the way in which outsourced projects are carried out. AI and PA can analyze large and complex datasets more quickly and accurately than ever before, allowing businesses to make more informed decisions about the services they are outsourcing.

Favoring nearshore outsourcing over offshore outsourcing

It promotes flexibility and mutual trust and reduces misunderstandings, overpaying, and displeasing outcomes. Customized contracts undoubtedly represent a prevalent outsourcing trend for 2021. There are different techniques to make one’s mark in the present day’s business scene and gain a competitive advantage. Companies aim to breeze through the market and get ahead of the game by using outsourcing partnerships. Try it for free to see how this growing outsourcing trend can fit into your business model. I started writing news for the InfoQ .NET queue as a way of keeping up to date with technology, but I got so much more out of it.

trends in outsourcing

The industrial revolution started to lead toward outsourcing as we know it. In the 80s, companies turned to the outsourcing of accounting and payroll. And before we could even press play to listen to Another One Bites the Dust, outsourcing has evolved. Governments have been increasingly intervening in the private sector as they have struggled to cope with the pandemic, rising geopolitical tensions, evolving economies, and climate change.

Pivot to an outcome-based business model

Meanwhile, outsourcing firms were shifted from manufacturing to small/medium-sized enterprises and public sectors. Organizational competencies loss means that due to the outsourcing firm’s getting contract-out to the supplier, the outsourcing firm may experience the loss of the professions and knowledge related to the outsourced part. Organizational competencies loss is connected to the risk of contract scope, close to the core competency, and interdependence of activities. Scope of contract means the more outsourcing firm contract out to one supplier, the harder the outsourcing firm can maintain independence. Meanwhile, when the outsourcing is too close to the “core,” the outsourcing activity will cause the outsourcing firm to lose the essential skills [29].

trends in outsourcing

It’s hard to tell whether sending jobs overseas has more pros or cons, but companies undoubtedly gain more profit because of it. It is only natural that these companies will continue with this practice because of the benefits they get from outsourcing work to remote workers. Even though it could be potentially dangerous for the economy, outsourcing is here to stay. Outsourcing statistics suggest that outsourcing cybersecurity is becoming an attractive solution for IT leaders. Statistics show that Nike has a 47% market share globally, and its sales revenue is close to $3.7 billion.

Energy & Natural Resources

Process automation is the robot using robotic process automation to automate the digital and physical task. The machine simulates humans to input and output information from multiple information technology systems. Cognitive Insight is the robot using massive user data to predict users’ behavior and preferences based on algorithms. This kind of robot is usually used for optimized job performance for machines. The tasks that the machine needs to accomplish are too complex for humans; therefore, human jobs are unaffected by this type of machine [59]. Cloud computing is a shared computing technology where software and hardware cooperate with the real-time network to provide users a service which allows user access certain supplier-provided services or functions remotely.

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