Natural disasters, geopolitical events, trade policies, changes in commodity prices, technological advancements… There are a lot of things that can affect the global economy. And what’s the best part? It’s totally unpredictable and unexpected.
Look at outsourcing as just another factor in that whole spectrum.
As technology continues to evolve and more companies seek to stay competitive, outsourcing has become an essential part of the global economy and global trade. But what secrets does the future keep? What new technologies will come out, and how will they impact the global marketplace? How will outsourcing affect income equality or international trade?
In this blog post, we'll explore the future of outsourcing and its potential impact on the global economy. We'll take a look at new technologies, changing work environments, and emerging outsourcing destinations.
So get ready to explore the exciting world of outsourcing and its potential impact on the global economy.
Importance of Outsourcing for the Global Economy
Hold up - before answering any question, we need to establish why exactly outsourcing is crucial for the global economy. Or, let’s take one more step back.
Why do businesses outsource, you ask?
Outsourcing allows companies to monetize on any of the previously described benefits of using BPO service.. Plus, it allows businesses to focus on their core competencies and leave the grunt work to someone else. It's like hiring a personal assistant but for your business. A win-win situation for both companies and the outsourced workforce.
That’s exactly why it’s affecting the global economy. From small startups to multinational corporations - businesses of all sizes rely on outsourcing to reduce costs, increase efficiency, and stay competitive in a constantly evolving market.
That’s a huge amount of companies that use the same process to improve their business. It’s obvious that it will affect the economy in one way or another.
Modern Outsourcing & Global Economy
Companies can now outsource a wider range of jobs, including customer service, IT support, and even accounting.
Today, outsourcing is a multi-billion dollar industry that plays a significant role in the global economy. While some criticize it for contributing to job loss in developed countries, others see it as a way to create opportunities and improve economic growth in developing nations.
Future of Outsourcing & Impact on the Global Economy
The future of outsourcing and its impact on the global economy remains to be seen, but one thing is certain - it's a complex issue that will continue to shape the way we do business for years to come.
Just a little disclaimer here, there is no chance we could know what exactly will happen in the next 10 years, 10 months, or even 10 days. Everything we mention is based on statistics and maybe even imagination.
We are going to cover 5 different aspects of the future of outsourcing:
- Emergence of new technologies
- Rise of automation and artificial intelligence
- Changing nature of work
- Increasing demand for flexible work arrangements
- New outsourcing destinations
Emergence of new technologies
Day by day, technology is improving. In recent years, new technologies have been developed that make it easier than ever to outsource work to other countries.
For example, about 10 years ago, Skype was the number one platform for video conferencing that allows people to communicate face-to-face in real time. Do you know anyone that is still using Skype for everyday life? Probably not.
Another exciting development that affects outsourcing is the rise of cloud computing. This technology allows people to access software, storage, and other resources over the internet, rather than having to rely on local hardware. This is an extremely important technology, especially for off-shoring.
Of course, new technologies don’t come without their challenges. Some people worry that they will lead to job loss, as companies can increasingly rely on automation. However, you can look at every change as an opportunity for a new start.
Rise of automation and artificial intelligence
Kinda similar to new technologies, just the thing people are more scared of.
We are all aware of how Ai technology like ChatGPT or MidJourney already changed the world. Outsourcing is not an exception as well.
Gone are the days when outsourcing was just about hiring a cheap workforce to do random repetitive tasks. With the rise of automation and artificial intelligence, businesses can now automate many of their processes and tasks, reducing the need for human intervention.
From chatbots to machine learning algorithms, businesses are now leveraging AI to improve their productivity and efficiency. This has resulted in the creation of new types of outsourcing services, such as chatbot development, prompt engineering and AI programming.
That means, businesses will rather “hire” an Ai tool to do something than an actual human being.
However, increased use of Ai will not lead to job loss. These tools are making things work faster, but they still need a human touch to work. As soon as you get to know these tools better and start using them in everyday life, you will be irreplaceable.
Changing nature of work
Technology is advancing, the world is becoming more globalized. There are a lot of changes going around. It's no surprise that the nature of work is changing too.
In the past, outsourcing was primarily focused on low-skilled and highly repetitive tasks. In fact, that’s exactly the type of outsourcing that everybody knows about. It doesn’t need to be like that. With the rise of automation and artificial intelligence, even higher-skilled jobs are becoming a big part of outsourcing.
And don’t think that’s a bad thing!
The changing nature of work also means that new jobs are becoming popular, particularly in the technology and service sectors. You’re a witness that a whole new industry is opening these days - prompt development.
These jobs require skills such as problem-solving, creativity, and critical thinking, which cannot be easily replicated by machines. So, while some jobs may be lost to outsourcing, new and exciting opportunities are also being created.
Increasing demand for flexible work arrangements
About thirty years ago, 9-to-5 jobs were like a top level when you were talking about success. Today… Well, it’s a bit different.
People are starting to demand more flexibility when it comes to their work schedules. That’s totally okay. Everybody would like to choose when they work and when they don't. No more being stuck in an office all day, staring at a computer screen, and dreaming of being somewhere else.
Thanks to the rise of technology and the internet, people are now able to work from anywhere, at any time. Whether it's from the comfort of their own home, a coffee shop, or even a beach on a tropical island. That’s not good news just for employees but for companies as well.
By offering more flexible work arrangements, companies can attract a wider range of talent from all over the world. They can also save money on things like office space, equipment, or other overhead costs. Plus, employees who are given the freedom to work on their own terms tend to be more productive and satisfied with their jobs (proven statistically).
Of course, there are still challenges that come with flexible work arrangements. It can be difficult to stay connected with colleagues and maintain a sense of teamwork when everyone is working remotely. Long story short, everything has a good side and a bad side.
But who knows what the future holds? We’re sure of one thing - the future of outsourcing is looking bright and exciting.