Watch Out for These Critical Data Outsourcing Trends in 2020

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data outsourcing trends

“Do what you do best and outsource the rest.”

Coming from the “Father of outsourcing” Peter Drucker, this quote is a perfect fit in the context of modern businesses.

Outsourcing is, after all, one of the biggest global trends of this millennium.

Outsourcing has expanded into many domains in the last three decades. It’s registered its presence in many sectors, from IT & finance to data entry services, business research, & customer service. Worldwide, the outsourcing market was worth $85.6 billion in 2018. And, it is expected to become an even more significant part of business strategies in 2020.

With such a rapidly growing rage around outsourcing, it’s become imperative for organizations to reassess their goals and strategies. They need to prepare for 2020. That’s why we’ve compiled the most influential insights from 2019 and predictions for 2020.

Take a look!

Outsourcing Then & Now- What’s Changed?

Peter Drucker, a legend in modern business, was the first to segregate business tasks into front-room and back-room activities. As per Drucker, a business should focus on the front-room tasks. The back-room functions should be handed over to a company for whom it qualifies as a front-room activity.

This is the concept that we’ve come to identify as outsourcing.

Since its inception, the scope of outsourcing has grown by leaps and bounds.

  • The US alone outsources around 300,000 jobs a year
  • 44% of CIOs(Chief Intelligence Officers) report that they are now more likely to outsource than they were five years ago
  • 24% of all small businesses choose to outsource to improve their efficiency
  • 65% of companies that have outsourced earlier are very likely to continue

In simple words, outsourcing has emerged as a transformational trend for enterprises.

Outsourcing in 2020- What Should You Expect?

Outsourcing data entry services - Online & Offline

Initially, outsourcing was considered a way to handle low-cost, time-taking activities, like manual offline data entry services. So far, it has been greatly limited to non-core business tasks.

However, the era of delegating core tasks to specialized vendors is upon us now. Present-day outsourcing decisions are based on an organization’s capabilities, objectives, and workforce strength.

Let’s see how it’s been so far and what the future looks like.

1. Top Reasons for Outsourcing

As per a Deloitte survey, the following factors have motivated many businesses to outsource activities to a third party.

% of Businesses Motivation for Outsourcing
59% Reduced costs
57% Increased focus on core activities
31% Improved services
28% Access to expertise and better knowledge
17% To better manage the business environment
17% To facilitate fast organization growth & transformation

These numbers stand as evidence to a simple fact- outsourcing has advantages that can’t be ignored.

Depending on organizational contexts and requirements, delegating particular tasks to a third party can have several benefits. Many businesses are already using this realization to fuel their growth.

In 2020, we can expect businesses to contact third-parties for core tasks and specialized services as well. Improving technology & better approaches will likely pave the way for more flexible Service Level Agreements. On top of the increasing problem-solving capacity, versatility, and gig-based cost-effective pricing will also motivate businesses to outsource.

2. Most Commonly Outsourced Activities

So far, the most outsourced business activities belong to the following categories.

  • Accounting
  • IT services
  • Digital Marketing
  • Development
  • Data Entry Services
  • Business Research
  • Human Resources
  • Digital Copywriting
  • Digital Photo Editing
  • Customer Support

Most present-day businesses are in perpetual flux. They have to update and adapt to the continually changing market. They require high-quality solutions and quick results. Therefore, they consider many factors, contextual and otherwise, before deciding to outsource.

At least, that has been the trend in 2019. In 2020, outsourcing is likely to evolve into more critical areas with very particular, high-end demands.

Businesses are looking for innovative solutions, cutting-edge tech, and flexible yet fast outcomes. Their outsourcing capacity also depends on the setup and management issues. These factors, serving as a motivation for the outsourcing industry, are likely to lead to a more skilled global workforce.

Businesses can expect to receive more core and advanced services, like complex problem-solving, idea generation, and strategizing.

3. Automation In Outsourcing

outsourcing data entry services

Emerging technologies have brought many new shifts to the market. Businesses have realized that buying skills is much better & cost-effective than developing them in-house.

As per a Deloitte 2019 survey, cloud and automation are leading a new wave of disruptive outsourcing.

With cloud technology, businesses can access a wide range of functionalities with ease. It also helps them avoid particular traditional roadblocks, like lengthy implementation procedures, extensive planning, and hefty expenses. On the other hand, automation promises fast and accurate functionality at low costs. When these two come together, the outlook fundamentally alters how businesses view traditional outsourcing.

The Deloitte survey highlight three trends in this context-

  • Outsourcing, done right, can give businesses a competitive advantage
  • An increasing number of companies are adopting cloud solutions and automated processes
  • Using these disruptive solutions pose challenges that haven’t been solved yet

Note that while these technologies enable a much better way of implementing business tasks, they also present complicated issues. For instance, data security is the primary concern of many businesses that outsource online data entry services.

Enterprises agree that their top fears, when using cloud and automation are-

  • Data security
  • Performance
  • Compliance with regulations
  • A threat to intellectual property
  • Fear of abandonment

These, in addition to other cyber risks, are preventing businesses from incentivizing cloud-based outsourcing solutions. However, 83% of enterprises agree that automation will gain more significance in the coming decade. 80% believe the same about AI.

Thus, it is expected that organizations will take a more strategic approach in 2020. More would be done to address the issues & adopt cloud & automation based outsourcing solutions.

Also, jobs that are based on creativity will rise since that aspect of human nature can’t be automated yet. As businesses grow accustomed to cloud and AI, the outsourcing industry will also see increased demands for support & development.

4. Rising Need For Tailored Outsourcing Services

The era of one-size-fits-all outsourcing solutions is long over. Outsourcing businesses are now more focussed on creating customized solutions to fit a client’s unique needs.

Businesses that can successfully identify flexible service providers and engage them in value-creating arrangements will enjoy an advantage in 2020. The filter of an increased economic incentive will urge outsourcing vendors to create high-tech, innovative solutions. And, with that filter, enterprises will only get the attention of top-tier outsourcing merchants.

Also, considering the rising need for exceptional service and distinct solutions, the following changes are expected to occur in outsourcing-

  • Vendors will be judged on outcomes
  • Businesses will share more risks with service providers
  • Strategy-based functions will be increasingly outsourced
  • Data security will become a determining factor when choosing an outsourcing vendor
  • Client-centric approaches will gain even more significant standing when making outsourcing decisions

The Future Holds Incredible Things for Those Who Outsource

In 2020 and beyond, outsourcing has an excellent chance of winning a bigger market space. Businesses can expect the rise in vendors who put greater emphasis on efficiency, cost-effectiveness, transparency, security, & specialized services. At the same time, enterprises will also introduce some changes when outsourcing services.

  • Increase the scope of outsourced services
  • Take a more structured approach when outsourcing
  • Spend more time in process construction and transition
  • Opt for more robust integration models
  • Preferring more advanced/innovative service providers

To thrive in the coming year, businesses will need to adapt as well. So, keep these trends in mind when you are about to outsource any task, core or otherwise.

SunTec India Can Help

For two decades, SunTec India has delivered accurate, fast, and efficient data entry services to many businesses. Backed by a team of experts, we offer a complete suite of online & offline data entry services. We have catered to many industry verticals. And, we know what it takes to make you stand out from your competition.

If you need help outsourcing data entry services or want to understand more about these outsourcing trends, get in touch with us at

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