Are you a real estate investor who wants to transform your professional life? You can change your future through digital outsourcing and digital transformation.
The tech markets have been moving in different directions in recent years.
This is why you may need to better understand the trends in digital outsourcing. A Deloitte study found that outsourcing has been growing fast. 35 percent of survey takers are measuring the value of innovation. Survey takers measured this in their outsourced partnerships.
You’ll need to stay up to date with digital outsourcing trends due to the significant growth. Keep reading to learn about the top 12 trends for digital outsourcing. Let’s get right into it!
The U.S. Presidential Election and Brexit Will Impact The Markets
Information technology and digital outsourcing will be changing course. This is due to Donald Trump winning the US presidency. Also, the United Kingdom exiting the European currency has affected digital outsourcing.
“This is part of a much broader problem that we’ve seen in the world, in which countries are turning inwards and reacting against globalization and open borders,” Richard Aboulafia, vice president of Virginia-based Teal Group, told Fortune.
Companies have been rethinking what they plan to do for outsourcing. The Trump Administration has a general stance against global trade. Also, Brexit has a real impact on the economy in the UK.
The policies of both the United States and Britain will likely change in the coming years. This will have a strong impact on digital outsourcing.
Companies will need to renegotiate their contracts. They’ll have to decide on what’s best for them going forward.
“We have seen a large section of the population that has not benefited in the past decade and we are seeing support for populist politicians with simple answers. Unfortunately, a lot of those answers are for protectionist policy solutions and air transport flourishes with open borders,” Brian Pearce, chief economist of the International Air Transport Association, told Reuters.
More jobs may stay within the countries instead of moving outside the country. There’s only one thing we know for sure. The Trump presidency and Brexit will play a big role in digital transformation.
Companies Will Have to Step Up Their Security Game
Data breaches were growing in 2016. IT departments are likely to step up their game and secure data in better ways.
In fact, big data has been growing over the last several years. This further amplifies the need for safety and security.
Digital outsourcing has changed due to changing company needs. The infrastructure and data delivery will have to change as well. This may cause more security concerns.
Companies are likely to improve their security infrastructure. This is because of greater awareness of data breaches.
Automation and data analytics solutions are likely to grow in demand. Vendors will start popping up to deliver key security products and services.
Artificial Intelligence Will Play a Role in Digital Outsourcing
Before you know it, the world will change. Robots and artificial intelligence will start taking up some key automation jobs.
This could happen in companies around the world. Businesses will begin outsourcing jobs to artificial intelligence automation software and robotics.
Machine learning and artificial intelligence can decrease costs for businesses in any industry. Automation can help standardize processes and offer benefits to both suppliers and customers.
Artificial intelligence may lead company leaders to begin renegotiating outsourcing contracts. Automation will play a key role in changing trends in digital outsourcing.
The Customer Service Call Center Will Continue to Decline
The customer service call center used to be a major part of outsourcing in earlier years. This has changed due to new communication channels.
Self-servicing tools and intelligent virtual assistants are replacing customer service call centers. Today, you can go on plenty of websites and a virtual assistant will pop up to offer feedback.
These virtual assistants have overtaken the role of the call center. They are now answering customers’ questions online.
Expectations for the Cloud are Growing
The early popularity of the Cloud is wearing off and users are looking for more than the basics. Cloud software and products will need to grow capabilities to meet greater expectations.
Consumers and businesses expect more from cloud computing.
Cloud vendors will need to adapt. Customers have become more knowledgeable and no longer want the least. Both home-based and outsourced vendors will need to expand the Cloud experience.
Different expectations for the Cloud will become a new trend in the digital market.
Growth in Consolidation Expected for the Digital Market
Many factors will shake up digital outsourcing. This includes policy changes, growth in automation and data security awareness. These factors will also stimulate companies to merge.
Mergers and acquisitions may grow for the digital market in the coming years. Expect to see spin-offs in the IT and digital technology world.
Business owners will create new structures to improve working relations with partners. Outsourcing partners will need to have stronger communication channels and solutions.
Some vendors may not be able to handle the changes coming their way. The ones who are flexible will have greater success. The ones ready to move right alongside the new policies will succeed.
Smaller companies will begin to merge within the digital industries. This will keep costs down and help them manage better in the fluctuating market.
Offshore Companies Change Their Strategy Plan
Growth in digital outsourcing will likely dwindle with offshore companies. This will change their strategies to remain in business.
The new presidential administration in the United States will change digital outsourcing. Brexit will also have an effect. The rise in automation will also make an impact.
Yet, offshore providers have also had to manage currency exchange issues.
There has been greater pressure on offshore companies to reduce their costs. As such, greater staff downsizing has been taking place at offshore companies.
“We’re entering into a new phase of workers who have a reasonable amount of technical savviness. That’s the first thing that’s causing trends that more work will be done in-house.”
“At the IT level, [in-house personnel] don’t have to be superstar developers – you can give them one of these low code products and make them productive,” Richard Rabins, CEO of app development provider Alpha Software, told the publication Enterprise Apps Tech.
Things will definitely be changing for offshore companies. The new trends in outsourcing will have a big effect.
Outcome-based Services Will Grow in Demand
The outsourcing market will focus more on providing positive outcomes for their consumers. They won’t be able to only provide a service and receiving payment.
Outcome-based pricing will become more imperative for the digital industry. This pricing is due to the capabilities of cloud computing.
Clients are more interested in obtaining more managed services and outcomes-based management. Everyone is looking for results instead of chugging along in their relevant industry.
Outcome-based services will become a key tenet of outsourcing in today’s digital market.
Bring Your Own Device (BYOD) Trends Expand
More people are searching for companies that allow them to use their own digital devices. Employees want to use their own laptops, tablets, and smartphones to work on.
A Unisys survey of more than 500 workers shows that 36 percent prefer to use their own devices. These workers want to use personal computers at work instead of the ones provided.
This Bring Your Own Device or BYOD trend may grow in the coming years.
More companies are offering employees the chance to bring in their own devices. Outsourcing businesses will need to consider how to put in place BYOD strategies.
Digital Transformation Impacts Traditional Outsourcing Market
Both IT and BPO buyers are moving toward as-a-service offerings. They are moving away from the more traditional outsourcing applications. This is due to digital transformation developments, according to CIO.
“They are compelled to connect their legacy systems with the digital operating models required to meet the needs of their customers. The current market environment is one in which speed, mobility, productivity, innovation, and intelligence are all interwoven and necessary for survival,” President of North EMEA and Asia for ISG John Keppel told CIO.
Over nine months, the traditional outsourcing market has produced less than $6 billion. This is a decline from prior years.
The traditional outsourcing market is in a decline. Yet, digital transformation is leading more buyers to look at as-a-service offerings.
Outsourcing Partnerships are Growing in Complexity
More and more companies are expecting more from outsourced partnerships. Business owners see that these partnerships can become much more than a simple way to cut costs.
Outsourced partnerships due more than help cut costs from hiring more workers.
Digital transformation programs are bringing more capabilities for businesses. This, in turn, is creating more complex and reliant outsourced partnerships.
Much more collaboration is taking place between offshore companies and local businesses.
“The business environment is a lot more complex and dynamic than 20 years ago, and time to market is important since even a 6-month lead can give you a competitive advantage,” Leon Coetzer, redPanda Software Chief Operating Officer, told MyBroadBand.
These outsourcing partnerships are becoming more complex due to digital transformation trends.
Have you seen any other trends in digital outsourcing? If so, let us know in the comments below!
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