With 2017 winding down, it’s clear that the BPO Industry – and offshoring specifically – had plenty to celebrate. Particularly in the Philippines, where its growth is predicted to outpace other performers to the point it is considered “unstoppable” amidst uncertainty throughout the year.
Offshoring is slowly becoming more accepted by more industries as a viable business strategy. If 2017 has shown the industry anything, it’s that there will be new opportunities and challenges to come for 2018. In this three part series, we tackle some predictions on what the BPO industry will experience in the coming year. We look at the state of offshoring in terms of both growth and obstacles it needs to overcome.
Another Year of Industry Resilience
For the BPO industry, 2017 started off on very uncertain, shaky ground. The global political climate brought plenty of industry anxiety, with companies questioning the long term effects of offshoring and outsourcing. The BPO industry is no stranger to these jitters and it has shown time and time again that businesses are readily adapting to a global labour workforce.
Over the course of the year, we’ve seen companies looking to add more flexibility to their arrangements and considering more mid to senior roles being sent to offshore teams. The start of 2018 will once again be full of careful optimism, but the industry will look to carry its momentum of growth and expansion as well.
Data Security Will Take Priority
Towards the end of 2016, Jimit Arora of the Everest Group’s IT division predicted that security automation, analytics and solutions will continue to be “robust” as “enterprises look to build a holistic approach to enterprise security and fend off business risks.” It was clear companies were listening, but others were not.
In the United States, one of the big stories of 2017 involved data theft and security breaches of a major credit company. Because of consistent cases like this, security is going to take center stage when considering offshoring strategies for 2018. Security risks and concerns should always be taken seriously by companies looking to send functions to an offshoring services provider. Good providers understand the importance of retaining intellectual properties and assign levels of clearance for particular information. It will be expected of them to provide robust security solutions to allay any concerns of breaches.
Reduced Barriers of Entry
One of the hallmarks of the BPO industry has always been its cost saving approach. This means that companies are able to save more without reducing the quality of work they expect. As technologies also continue to evolve, so will its impact on the business environment. Cloud technologies and collaboration tools have become more prevalent in today’s modern workspace. They have also helped reduce the barriers of entry for businesses looking to offshore and outsource. As offshoring is now applicable to even mid-sized companies, look for more industries to adapt it as part of their business model. With wider acceptance, the offshoring approach is slowly becoming a standard for companies looking to compete on the global stage.
We’ll be back next week with the second part of our offshoring predictions for 2018. If you’re looking to start the new year with a fresh approach, please feel free to contact us.