Outsourcing is the use of external service providers to effectively deliver IT-enabled business process, application service and infrastructure solutions. Why is it so important for companies with a vision of staying relevant in the future?
For many companies around the world, the agility with which they respond and adapt to a new reality will determine which companies will be left behind and which will succeed. That’s why outsourcing has gone from being a hiring resource to a way of life, giving them the opportunity to focus on what’s really efficient for the business without incurring additional expenses or wasting time in areas that are not strategic to their profitability.
During the last decade and due to globalization, companies have been forced to evolve towards a more competitive environment, opting to delegate some processes to a specialized service provider. This has led the outsourcing industry to be one of the largest contributors to the global economy, reaching a value of $92.5 billion dollars in 2019 and projected to 2025 to reach $114 billion dollars. So much so that it could soon reach the levels of leading industries such as oil and gas.
And the studies back it up, according to Deloitte’s Global Survey, 78% of companies around the world outsourced at least one of their processes, being completely satisfied with the result achieved, which shows that organizations are getting real benefits that positively impact, such as increased growth, reduced overhead, greater focus and quality of service.
Who are the main players in the world’s major outsourcing markets?
Today, around 250 million people in the world are integrated into the labor market through responsible outsourcing companies. United States and China are the two countries that employ the largest workforces through outsourcing companies. India, Poland and Ukraine are also on the list for their IT offerings.
Central America is gaining positioning and reputation, and is considered a powerhouse due to its strategic location and multicultural environment. It has competitive costs, quality products and/or services and easy adaptability to the demands and requirements of foreign companies.
One of the greatest advantages to be highlighted is that a large part of the labor force are young people between 18 and 40 years of age, with excellent learning skills, adaptability to change, multilingual and highly specialized, which provides an added value for large companies in the world that are looking for talent with the ability to adapt. Latin America is projected to reach revenues of US$8.3 billion, half of which will be generated in Central America.
Costa Rica is one of the countries in charge of contributing to this growth, as it has gone from offering traditional outsourcing services, such as asset maintenance or call centers, to more sophisticated ones, and this places it as a protagonist in the list of the most attractive countries worldwide to invest in the sector.
Costa Rica is considered today as the next capital of outsourcing services, mainly because important US transnational companies prefer it for its competitive costs, commitment of bilingual professionals and growth in the development of technological infrastructure and telecommunications. The future for this region is promising, outsourcing has been consolidating as a key industry for the generation of investment and employment.
What are the main goals of outsourcing?
Outsourcing continues to be an essential resource for organizations to support their strategic objectives where cost reduction is unquestionably the main objective, however flexibility has become increasingly important, related to rapid scalability, improved user experience and competitive advantage. While the market is talking about agility, technology skills and innovation, an aspect of great relevance for customers and potential contractors is cost optimization, a key feature that has a great weight on the final decision for the award of a project.
Which sectors are the most outsourced?
According to statistics from Infiniti Research Limited, the technology outsourcing market is expected to grow by US $98 billion between 2020 and 2024. Advances in technological innovations, growth in the global use of mobile telephony and the migration of companies to the cloud are contributing to the growth and prominence of this sector. For example, US companies outsource around 39% of their financial functions, but plan to increase this percentage to a figure that could be around 89%.
The statistics demonstrate the success of outsourcing around the world. While all sectors make a considerable contribution to the financial growth of the market, IT remains a major contributor. The bottom line is that by outsourcing, companies are rewarded with more time and greater staff support, allowing them to scale or de-escalate at the pace they plan to do so in order to remain competitive in a changing market that demands their services and offerings are constantly improving.
Covid-19 brought with it many changes, today companies have adopted an increasingly embedded remote work culture, which helps them access global talent from the most cost-effective locations.
At Interfaz we offer outsourcing solutions that adapt to your specific needs. We offer experience, knowledge and customized technological solutions that seek cost reduction and time optimization. If you are looking for a provider to help you reach the maximum potential of your company, rely on Interfaz professionals, a certified and committed team to meet your business objectives.
Resources: Deloitte Global Outsourcing Survey | KPMG Gloal IT-BPO Outsourcing | Infiniti Research Limited