In the last few years, outsourcing has become one of the essential strategies for businesses to keep up with the changing economic landscape. However, the field itself is also continuously evolving. And companies should be ready to ride these changes. Here are the trends that 2024 will bring for the field.
2024 Outsourcing Trend No. 1: Nearshore Outsourcing
When people hear the word outsourcing, they often think of companies sending some of their work to far-flung countries. While this is the most common mode, it is not the only one. Another type that will become significant in 2024 is nearshoring.
The main difference between the two types is the distances involved. As the name says, nearshoring is about sending work to a provider geographically close to you. That may be to surrounding countries or even providers within the same country as the business.
Image from NewStream Enterprises.
Here, you might wonder why the option is not prominent like the other one. After all, it seems a logical choice. However, the main reason has to do with the cost. Depending on the general business environment of the company’s surrounding regions, outsourcing to nearby providers might be almost similar to their current labor costs. Other faraway countries might have comparatively lower prices, which makes them a more palatable option.
Nevertheless, companies are now seeing the benefits of nearshore outsourcing. Some of these include improved communications since there are no significant time differences. Additionally, businesses can enjoy better cultural compatibility since the geographical proximity also results in the development of similar work practices.
How To Ride The Trend
To better take advantage of nearshoring, you should have a clear idea of the options around your geographical area. Note that the search should include providers from neighboring countries. However, have a clear definition of what “near” is for you to have a better focus on your desired providers.
In the case of Virtua Solutions, for instance, our outsourcing clients are mostly from Western countries. However, we have also expanded our services to nearby Southeast Asian nations. Potential clients within these countries can take advantage of our proximity and ability to adapt to different work cultures.
2024 Outsourcing Trend No. 2: Artificial Intelligence and Machine Learning
The growth of artificial intelligence in the last few years is often thought of as a direct threat to outsourcing. After all, why get external staff when you can get a machine to do the job? But as it turns out, this could be further from the truth.
Image from Colliers.
Like any field, the outsourcing industry adapted quickly to the development. As such, AI has now become an essential tool in outsourcing providers’ arsenal. With it, they can develop more efficient and optimized outsourcing processes for their clients. That allows them to do more work for clients.
How You Can Ride The Trend
The best way to gain from both outsourcing and AI is to learn how you can use them effectively at the same time. Here, you have to consider what role each will take in your business process. For instance, AI can primarily take on repetitive tasks. On the other hand, you can outsource more sophisticated ones that require expert knowledge.
But you can go further by exploring how AI can support your outsourcing needs and vice-versa. An example of the former would be your provider developing their own AI tools to support their work.
Image from Go4Customer.
On the other hand, you can also take advantage of outsourcing to improve your own AI tools. One example is outsourcing the data gathering and training of the tool. The main draw to this move is that you can greatly expand your training efforts without using too many resources. However, you should ensure the quality of the results.
2024 Outsourcing Trend No. 3: Ecosystem-Based Outsourcing
For many companies, sticking to one outsourcing provider is a typical option, as it simplifies everything. However, there are instances where the provider might not be able to fulfill all the tasks you have. In this case, you contract additional parties that can provide the needed services.
Image from ScienceDirect.
Previously, companies would only use multiple outsourcing on a case-to-case basis. However, there is a growing trend of the so-called ecosystem-based outsourcing. It is the process of establishing a network of service providers that you can engage.
The strategy gives companies more flexibility. Using it, they can quickly adapt to changing business needs. They can also access more expert talent, helping in their expansion.
How To Ride The Trend
The secret to effective ecosystem-based outsourcing is choosing the right providers to include in your network. These providers are not only there to fill immediate needs. You also want to be able to rely on them for future developments.
For that, you want providers that can quickly adapt to different situations. In Virtua’s case, for instance, we are continuously exploring new services to offer to our clients. We can also create customized processes for your needs. With that, you can slot us into different roles depending on your needs.
2024 Outsourcing Trend No. 4: Sustainability And Ethical Outsourcing
In the last few years, the world has seen how crucial outsourcing is for sustaining businesses. However, with the rush to take advantage of the option, there are concerns that it might soon become unsustainable. Some sectors have also raised concerns about the potential exploitation of outsourced workers.
Image from Geeks For Geeks.
Because of that, companies are now moving towards a greater emphasis on ethics and sustainability when making their outsourcing decisions. Here, they want to ensure that the providers they work with abide by strict ethical rules. Companies also want to be sure that these providers’ methods are environmentally and socially sound.
How To Ride The Trend
One thing that you need to understand is that sustainable and ethical outsourcing isn’t just about looking for a provider that can promise such. You should also be committed to making that happen.
For that, you have to work with your providers to craft a long-term sustainability map. Project how your eventual business development can impact various sectors. From there, explore how outsourcing can help you make that development more sustainable. You would also want to work closely with providers and help them better adhere to ethical guidelines.
Keep Up With The Trends And Gain MORE From Outsourcing This 2024
With the exciting trends above, outsourcing is going to offer a lot for businesses that might need it. And you should be ready to take advantage of these to get more from the strategy. Virtua Solutions is always here to lend you a hand. Contact us today.