BPO Outsourcing Trends To Monitor In 2023

Change is coming, as it always does. But what will the future hold for business? Why don't we take a peek into the rest of 2023? We know that things like Artificial Intelligence (AI), Automation, will strongly influence Outsourcing Trends. But how will these changes affect you and your business operating model?

If we've learned anything from 2022, we know that the future is unpredictable and will vary by business sector and even individual enterprises. If you can ever term a broad statement as “specific,” here's a look at some possibilities.

• Onshore costs are still rising.

  • Higher wages drive rising costs. According to Zip Recruiter, the average base wage for a U.S. call center worker today is $17.00 per hour, a 40% increase since pre-pandemic levels.

  • This, in turn, drives up overall Outsourcing costs. This trend is expected to continue in 2023.

  • Work-at-home wages for US BPOs continue to rival in-person pay.

• Staffing is still an obstacle.

  • Forward-thinking BPOs are increasingly relying on digital and social recruiting.
  • BPOs will need to invest more in employee communication and amenities.
  • For BPOs to thrive in 2023, they must adopt a “best-place-to-work” attitude.
• Nearshore and offshore are increasing.
  • With rising labor costs in the U.S., expect nearshore and offshore growth to continue.
  • More and more business sectors are turning to nearshore and offshore call centers for cost reduction and talent access.
  • Most nearshore markets are capable of delivering high performance and scale.
  • Turnover in a leading BPO market in the Philippines is increasing, and this troubling trend can spread.

Leading BPO Trends For 2023

Outsourcing in its various forms has been around for a long, long time. As technology advanced, so did the ability to have employees work in a business offsite. The logical extension was finding Very Offsite employees, as in Offshore. Today it's a significant industry with clients in nearly all business sectors, and its trends and expectations impact those sectors that depend on BPO services. So what's the outlook for this new year?

• Artificial Intelligence - Not solely in the realm of BPO, AI will continue to impact every business sector. As AI's abilities continue to expand, those services will be marketed by everyone.
• Automation - Another rapidly expanding field, the very nature of automation, is continuing to add services as science advances. There is much concern about those ramifications. The fundamental impact is human employment.
• Cloud Services - The ability to access your information services anywhere, anytime, quickly caught the attention of the more prominent players in the IT industry. This enthusiasm has continued to snowball.
• BPO Growth - The need to continually cut costs in nearly all sectors, by almost all businesses, because of the continuing uncertainty about future inflation and recession has increased interest in outsourcing.
• Increased Demand For Virtual Assistants - Adopting technical innovation when it becomes available and affordable is human nature. “Virtual Assistants” was once called a Filofax in the paper age.
• Social Media Management - For all of the recent criticism leveled at the various social media outlets, they continue to be popular, if not wholly profitable. This may change, however, if their past transgressions evoke regulation.
• Secure Cyber Infrastructure - Cybercrime is a real threat, and it's constantly growing. Businesses that don't take the threat of sophisticated cyber-attacks seriously and proactively take preventative action may suffer catastrophic damage to income and reputation.
• Increasing Flexibility and Adaptability - Today's enterprises love to use the word “nimble,” meaning that they can react to a changing playing field quickly and correctly. This is an advantage for both businesses and clients.
• Focus on Customer Value - “the customer is always right” has been an enduring mantra throughout history. Those that don't know that key are likely to fail ultimately.
• Ensure Business Continuity - Keeping the business process moving has to be a priority regardless of the sector. This includes staffing, supply chain, and service after the sale. Keeping all of these components on track is essential.
• Onshore Cost Surge - Because the shortage of willing workers after the pandemic has exploded wages in the US, how this will affect the overall marketplace needs to be revised. Will inflation continue? Will there be a recession?

If you detect a trend in this view of the future, everything we're experiencing now will likely continue and expand in scope. The real question is, how will it affect you and your business?

We Need To Change It Up. But How?

In large part, the coming changes in business are dependent on climate. Not just the earth's climate (which does have a significant impact) but the environment for business as reflected by the consumer and government.

The broad government assistance that came about during the catastrophic Pandemic and its aftermath is winding down. If it's too soon to reduce, the power of the government's involvement in recovery is a question that will quickly be answered. Still, the fact remains that 2023 will be yet another new phase in our changing business universe.

How a business responds to these challenges is also an open question. Growth has returned to the American economy, but for how long? Wages have continued to rise, but for how long? The effects of the war in Europe seem to be factored in, but what if the scope of that conflict broadens? And how will the massive amounts of money spent on rearming the Ukrainian armed forces affect western economies?

So, many questions remain. And let's face it, we have been taught that predictions are sometimes laughably wrong. There is just too much uncertainty in today's world.

To really prepare, we need to heed an old tradition: “plan for the best, prepare for the worst.” In effect, that's what engaging a Business Process Outsourcing partner is all about. It doesn't eliminate all uncertainty, but it removes some close-to-home risks.

If you need some objective advice based on Business Process Outsourcing, a reliable source is Rely Services and their team of specialists. They understand that no two enterprises are the same, and a unique solution to approaching peril demands analyzing both the marketplace and the client.