As the Business Process Outsourcing (BPO) industry changes at a rapid pace, new and developing trends are starting to arise – all of which could shake the foundation businesses who leverage outsourcing as a strategy. What was once dubbed as “affordable overseas”, the BPO industry is now a billion-dollar industry supporting most businesses across the globe in one way or another.

Right now, there are many trends which are changing the outsourcing industry. To shed some light on these rising trends, here are the key insights from the latest research from Deloitte, detailing the top emerging trends that are redefining the outsourcing market.

  1. Motivations for Outsourcing is Evolving

There are many reasons why a company may choose to outsource certain business functions. The research has found out that the most common reasons include.

  • Cost cutting tool – 59%
  • Enables focus on core business functions – 57%
  • Solves capability issues – 47%
  • Enhances service quality – 31%
  • Critical to the business needs – 28%
  • Access to intellectual capital – 28%
  • Manages business environments – 17%
  • Drives broader transformational change – 17%

While cost continues to play a leading motivation in outsourcing, better focus on core business functions, capacity, service quality, robotic and cognitive process automation, cloud, and innovation are growing in importance as well.

  1. It’s Becoming a Key Enabler of Mergers and Acquisition

 It’s Becoming a Key Enabler of Mergers and Acquisition

  • 41% of companies use outsourcing to lower operating costs of acquired companies.
  • 39% use outsourcing to speed up the ability to integrate new organisations
  • 32% of respondents believe that outsourcing initiatives make their organisation more appealing.
  • 21% use outsourcing to improve operating income.
  • 19% use outsourcing to reduce the need for Transition Service Agreements.

While outsourcing has been playing a key role in mergers and acquisition (M&A), it is only until this past recent years when more and more companies are using outsourcing as a strategy to accelerate the integration process and reduce the cost involved in the M&A activities process.

  1. Robotic and Intelligent Process Automation

According to the research, 70% of businesses and outsourcing services providers are currently implementing or are discussing the use of robotic and cognitive process automation to improve outsourcing results.

Is Robotic and Cognitive Process Automation Emerging in Your Outsourcing Relationship?

  • Service providers want to discuss – 20%
  • Service providers demonstrate it – 13%
  • Currently implementing – 13%
  • Respondents are driving the conversation – 12%
  • Currently evaluating – 12%

Artificial Intelligence (AI) and robotic process automation will innovate certain aspects of business functions which for certain will disrupt outsourcing structures and drive down cost. This will result in more efficient outsourcing service, greater savings for businesses, as well as cause for companies to renegotiate their existing outsourcing deals to include AI functions in their agreement.

  1. Changing Perspectives on Cyber Risk

Changing Perspectives on Cyber Risk

Perspectives and Action Plan to Mitigate Cyber Risk:

  • 75% of respondents feel confident in their partner’s capability to stay updated with the changing regulatory and security issues within their industry.
  • 73% of respondents consider cyber risks during the outsourcing process.
  • 50% of respondent are modifying their outsourcing process.
  • 64% of respondents who are modifying their outsourcing processes focus more attention on defining security protocols or sharing security risk with their outsourcing provider.

It’s safe to say that the outsourcing industry relies a lot on the Internet, which is why cyber security is so important in outsourcing strategy. However, while a majority (73%) of respondents consider cyber risk in outsourcing strategy implementation, most see outsourcing as part of their cybersecurity solution. In fact, only 23% of the respondents are saying that cyber risks are influencing their decisions to outsource.

  1. Strong Outsourcing Relationship is Becoming More Crucial

Here are the ways companies are improving their outsourcing relationship:

  • 28% devote more time to Request for Proposal (RFP)/Vendor Selection.
  • 61% transitioned to another outsourcing provider to remediate issues rather than move service in-house
  • 73% are working to improve their VMO capabilities.
  • 16% leverage a more competitive bidding process.
  • 31% spend more time in a transition stage.
  • 28% would construct better SLAs.
  • 27% would build a more robust VMO.

Before, outsourced service providers were focused on handling  auxiliary functions of the business such as call centre outsourcing and data entry services. But now, BPOs have become a strategic partner of businesses because it widened its scope of tasks that includes major functions.

To ensure they get value from their outsourcing partnership, companies are now taking initiatives to improve the outsourcing process by creating better Service Level Agreements and implementing more robust Vendor Management procedures. More companies are also giving more emphasis at the beginning of the outsourcing relationship to select the right outsourcing partner and put in place supporting SLAs and organisational capabilities.


As competition becomes much tougher, it’s imperative to choose the right offshore outsourcing provider that will help you take advantage of these emerging trends for your business.

Contact Global Outsourcing today to learn more about our offshore outsourcing solutions in the Philippines.