2020 will see a shift from operations to strategy, peripheral activities to differentiations, and single activities to entire organizations.
In the year of 2020, outsourcing will emerge in new areas. But do you know what areas of a business will be outsourced in 2020? Let us explore. Over the last decade, enterprises have been moving their production or other such services offshore, so as to leverage lower costs of production. Outsourcing has now moved outside of an organization’s core business, with enterprises also outsourcing their single-service needs.
In the year of 2020, outsourcing is said to evolve and include more strategic areas. There will be a shift from operations to strategy, peripheral activities to differentiations, single activities to entire organizations and basic needs to complex problems.
The current trend of outsourcing single activities and operations is not over, however there are not many non-core activities that are left to offshore in mature outsourcing markets and industries. This is why enterprises in these markets are starting to move the boundaries of outsourcing into more advanced and core areas like innovation or idea generation.
In 2020, emerging outsourcing areas will challenge internal limits
The enterprises, which can successfully spot new value-adding arrangements within business areas, will have an advantage in 2020. For this to happen, service providers have to create new system-wide perspectives that will involve a relationship with several partner organizations and also serve as deal architects. To move the boundaries of outsourcing into core business areas requires enterprises to move ahead of structural constraints and push aside internal limits, without surrendering control over the strategic decisions of a company.
Innovation and idea generation will be integral
To keep up with these new realities, service management and facility providers will have to expand their innovation capacity and move into new areas like innovation and idea generation. This will enable organizations to differentiate themselves and attain competitive advantages. Right now, the vast majority of service providers are not yet capable of offering this service for two main reasons:
- Firstly, there is no economic incentive to offer innovation when the service provider is bound with a contract
- Secondly, businesses are not willing to pay for advice on innovation, with the rare exception of a few industries
The areas of outsourcing will become more specialized
With the fast-progressing technological sophistication that is happening across markets, the outsourcing domain will expand into unexplored service areas, thereby creating new market opportunities for both service providers and customers. For customers, where data and information for the primary economic asset, newer service opportunities will emerge for leading industry players to collate context-specific data or to process it. In 2020, humungous data sets with analytics, applications and integrated storage will come into being to drive the quality, efficiency and personalization of services/products.
2020 will see the emergence of the experience economy
2020 will see the emergence of the experience economy, where the primary economic value will reside in experiencers and other such immaterial attributes. This will create new pathways for better market opportunities and service innovation.
In 2020, customers are more likely to demand outsourcing services that will take into account design, aesthetics, values, experiences and storytelling, all of which are immaterial in nature. This will help in maintaining a better focus on service design and user experiences for current offerings. This type of customer-centric approach, with special emphasis on the emotional journey of customers will be essential in year of 2020.
With more emphasis being placed on the well being and health of employees, it is likely that new organizational wellness solutions will be expected by customer. On the whole, service providers have to be prepared to include new demands and emerging service areas. Or they have to at least be willing to partner with those who can offer such solutions. This new shift will involve offering new on-site professionals (trainer, coaches, etc) to help with facility management or human resources.
Outsource in 2020!
Do you want to try outsourcing in 2020? We, at Outsource2india can help you get started. From customer support, to software development or photo enhancement to data entry and medical coding, we offer a host of specialized outsourcing services for different industries. Your enterprise will be sure to gain a competitive advantage with outsourcing. Find out more about the services you can outsource.
What are some of the other outsourcing changes that you are seeing in your business? Do you think outsourcing will emerge in new areas in 2020? Let us know what you think by leaving a comment in the box below. We, at Outsource2india love to hear from you!
Interested to know more?
- Interesting Outsourcing Facts of 2019
- Outsource Beyond Bangalore: India’s Top Five Outsourcing Hot Spots
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