What are the latest offshoring trends in 2021 and beyond?

When offshore outsourcing services first emerged in the late 90’s, for many people the concept seemed almost absurd, because some even thought of it as an act of modern colonization, people were against outsourcing jobs to overseas, and the ethics was being questioned. However, in today’s global scenario, the time when offshore outsourcing was only seen as a move by organizations to drive down operating costs is long gone. It is now seen as an investment to improve the quality of operations and accelerate speed to the market with scalable and flexible services utilizing a bigger pool of talent.

So are you getting ‘the right outsourcing partner’ in 2021? What to expect as a result of the global pandemic? Will companies increase their collaborations with offshore staff? What outsourcing trends will shape partnerships between vendors and clients? Here is everything you need to know about outsourcing as a great way to thrive in the new normal.

The year 2020 proved that we are all living in a highly volatile environment, where things can change drastically at any given moment. But the past year has also given us a good lesson - it has prepared us to cope with such crises as the global pandemic and taught us to be more adaptable, resilient, and responsive. Remote working is undoubtedly becoming the new, modern way of working.

To say that 2020 has presented a challenge for businesses would be a huge understatement. Towards the end of March, offices throughout the UK were asked to close their doors with very little notice, effectively forcing them to rush through an entire digital transformation strategy in a matter of days. Most businesses had already been making provisions to enable remote working, but the process was a gradual one, with new tools, training and policies being nurtured over months and years. Suddenly, it was sink or swim and businesses had to adapt to the ‘next normal’ that was, in so many ways, uncharted territory.

So talking about 2021 it is very important to understand that approaching outsourcing with a ‘quick fix’ mentality could be a dangerous response to this pandemic.  It should focus not only on the immediate solution but also the long-term goal with that solution. Now there have been some debates in the media over whether outsourcing is risky. But evidence of firms that are actually engaging in regulatory outsourcing is to the contrary. Among the benefits of outsourcing are that outsourcing fees are variable, meaning managers can generate efficiencies and performance benefits. We utilise outsourcing and operations management experience, and leverage market-leading Dimension technology which creates net positive results in terms of managing costs and operational risk.

Technological advancements are reshaping the offshoring industry. The Covid-19 pandemic has highlighted the need for efficient remote workplace management. 2020 has ended and many industries see it as a year that is best forgotten. Market research reports indicate that 2021 could see some distinct trends in the offshoring industry, some of which have witnessed last year:

• - Data-driven Cloud Services

An independent research states that 77% of outsourcing companies host at least one cloud app. Innovations such as machine learning and artificial intelligence require data for implementation. This understanding enables businesses to provide better service to your customers.

• - Fostering Remote Working Environment

The shift to remote work became essential with the spread of Covid-19. Outsourcing providers adopted advanced technologies to ensure that staff of their client organizations could coordinate working from remote environments effectively. Cloud storage is part of the equation today for all the companies indulging in offshoring.

• - Shift in Offshore Location

India accounts for a big portion of outsourcing activities. India has won its spurs as the world's outsourcing destination of choice. Indian outsourcing firms strive to ensure smoother functioning of client services, reducing risks and increasing the effectiveness of their services, making India the most preferred offshore destination

We feel that taking advantage of offshore development has become the mainstream and quality of output is improving so much, that it is a viable option for any businesses around the world looking to maximize cost efficiency and agility. Should you have any inquiries, please contact us by email on info@glocalpinnacle.com