Preparing for 2020: Key Outsourcing Trends You Should Know About
As we approach 2020, the outsourcing industry is on the brink of significant transformation. The ongoing advancements in technology, shifts in workforce expectations, and evolving global economic conditions are all contributing to a rapidly changing landscape for businesses relying on outsourcing. This article explores the key trends set to shape outsourcing in the coming year, including the rise of AI and automation, the growing importance of talent management systems, and the continued focus on innovation and flexibility.
1. The Continued Rise of AI and Automation
- AI in Outsourcing: One of the most significant trends shaping the future of outsourcing is the integration of artificial intelligence (AI). In 2020, businesses will increasingly rely on AI-driven tools for automating tasks, improving decision-making, and enhancing efficiency. AI can be leveraged in a variety of ways, from automating customer service functions using chatbots to analyzing big data for more informed business decisions.
- Robotics and RPA: Robotic Process Automation (RPA) is another technology that is gaining traction in outsourcing models. RPA tools can handle repetitive, rule-based tasks, freeing up human workers to focus on more complex and creative work. As businesses seek to streamline operations and reduce costs, RPA will play an increasingly pivotal role in outsourcing arrangements.
2. Talent Management 2.0: More Sophisticated Systems
- Advanced Talent Management Platforms: As the demand for global talent grows, companies are moving beyond traditional talent management systems. In 2020, businesses will embrace more sophisticated platforms that combine AI, machine learning, and predictive analytics to identify, manage, and nurture talent more effectively. These tools will help businesses find the right talent faster and create a more agile workforce.
- Personalized Talent Development: Companies will also begin to offer more personalized talent development programs to ensure that outsourced employees have the skills needed to thrive in their roles. This approach will include tailored learning paths, real-time feedback, and career growth opportunities that help workers stay engaged and productive.
3. Remote Work: Beyond a Trend, It’s the New Normal
- Permanent Shift to Remote Work: Remote work was already on the rise in 2019, but in 2020, it will become even more entrenched as a long-term model. Companies are discovering the benefits of remote teams, including cost savings, access to a global talent pool, and improved work-life balance for employees. With the continued improvement of collaboration tools and cloud-based solutions, managing remote teams will become easier and more efficient.
- Hybrid Work Models: Many companies will adopt hybrid work models that combine in-house staff with remote talent. This approach allows businesses to access the best of both worlds: the collaboration and innovation that comes from in-office work, combined with the flexibility and cost-effectiveness of remote outsourcing.
4. Data Security and Privacy: A Growing Concern
- Increased Focus on Data Protection: As outsourcing becomes more global, the need for stronger data security measures will intensify. In 2020, businesses will be under increased pressure to comply with data privacy regulations, such as GDPR, and ensure that their outsourcing partners adhere to the same security standards. Companies will invest in more secure outsourcing contracts, implement stronger cybersecurity protocols, and use encryption and secure communication tools to safeguard sensitive information.
- Transparency and Trust: Along with data protection, transparency in outsourcing arrangements will become a critical factor for businesses. Companies will prioritize working with outsourcing providers who demonstrate high levels of transparency regarding their data practices, helping to build trust between clients and partners.
5. Outsourcing for Innovation: Fostering Creativity and Competitive Advantage
- Strategic Outsourcing for Innovation: In 2020, businesses will no longer see outsourcing simply as a cost-saving strategy. Instead, they will leverage outsourcing to drive innovation and gain a competitive edge. By collaborating with external experts, companies will tap into specialized knowledge and creative solutions that may not be available in-house. Outsourcing will become a key part of the innovation ecosystem, supporting new product development, market research, and even creative processes.
- Outsourcing for Digital Transformation: As companies continue their digital transformation journeys, outsourcing will play a key role in enabling this shift. Businesses will partner with outsourcing providers to access cutting-edge technologies, such as cloud computing, blockchain, and data analytics, to support their digital strategies and enhance customer experiences.
6. Sustainability in Outsourcing: A Growing Trend
- Green Outsourcing Initiatives: Sustainability will become an increasingly important consideration in outsourcing decisions. Companies will demand that their outsourcing partners adhere to environmental and social responsibility standards, including reducing carbon footprints and promoting ethical labor practices. This trend will encourage a shift toward more sustainable business practices and the adoption of green technologies within the outsourcing industry.
- Ethical Outsourcing: Ethical sourcing of talent will also gain importance, as companies seek to ensure fair treatment of workers, safe working conditions, and equitable pay. Outsourcing providers that prioritize these values will be more attractive to businesses committed to corporate social responsibility.
7. Global Talent Mobility: New Geographies, New Opportunities
- Emerging Talent Markets: In 2020, we will see an increased focus on emerging markets for outsourcing. As talent becomes more globally dispersed, businesses will look beyond traditional outsourcing hubs like India and the Philippines to tap into new talent pools in regions such as Africa, Eastern Europe, and Latin America. These regions offer untapped opportunities for cost-effective outsourcing, and the availability of skilled workers in these areas will continue to grow.
- Talent Mobility and Flexibility: The growing demand for remote work and global talent will lead to greater mobility, with workers from all over the world able to collaborate on projects regardless of location. Businesses will become more open to hiring workers from diverse geographies, creating a more globalized workforce.
8. What This Means for Your Outsourcing Strategy
- Embrace Technology: Companies that want to stay competitive in 2020 must embrace the technological advancements that are reshaping outsourcing. Whether it’s leveraging AI, robotics, or advanced talent management platforms, businesses should invest in the tools that will allow them to work more efficiently and effectively with outsourced teams.
- Plan for a Hybrid Workforce: As remote work becomes the new normal, businesses should start planning for hybrid workforce models that integrate remote talent with in-house teams. This shift will require businesses to adapt their management styles and invest in collaboration tools that foster seamless communication and teamwork.
- Focus on Innovation: Rather than viewing outsourcing as just a cost-saving measure, businesses should embrace it as an opportunity to access specialized expertise and drive innovation. Partnering with the right outsourcing providers will help companies stay ahead of the curve in an increasingly competitive market.
Conclusion
As we move into 2020, the outsourcing landscape is set to evolve dramatically. AI, automation, data security, and global talent mobility will all play pivotal roles in shaping the industry. Companies that embrace these trends and leverage the right technologies will be better positioned to thrive in an increasingly competitive, digital-first world. Preparing for these changes now will ensure that your business is ready to take advantage of the opportunities that lie ahead.