Wednesday, April 17, 2024
HomeNews TrendsThe Impact of Technology on Outsourcing

The Impact of Technology on Outsourcing


Outsourcing has always been the go-to business strategy of large corporations who want to capitalize on their core business competencies by delegating non-critical tasks and processes to third-party service providers. Outsourcing results in less operational expenses and higher profit, as the outsourcing partner takes care of a specific business function with speed and efficiency.

As technology gets more sophisticated to address changing consumer behavior and patterns, large corporations now have to rethink how they outsource their business operations to include essential business strategies.

Some of the outsourcing trends include robotic process automation (RPA) and cloud computing. RPA helps automate business and administrative processes such as cost accounting on the backend. This also helps in applying structured data or instructions to routine and repeatable tasks with little need for human interaction. Don’t confuse RPA with chatbots. Chatbots have a chat element, unlike RPA, to fulfill customer needs. Cloud computing delivers any desired business outcome fast and efficiently, eliminating expensive business infrastructure to store and manage data.

Beyond cost efficiency, outsourcing certain business functions is a smart move that can increase business productivity. By allowing outsourcing firms to provide technical support services, you can focus on improving your core business goals.

Technology’s contribution to the outsourcing industry

Indeed, technological innovations have transformed the way outsourcing companies approach their work. Technology elevates everyone’s capacity and mindset – from managers to call center agents – to be adaptive to tools and become the master of their work.

With all the technological advancements that complete a project efficiently, is it safe to say they bear significant results?  A new kind of outsourcing practice called “outcome-based outsourcing” changes how outsourcing partners deliver results. It differs from the traditional approach by looking at outsourcing partners as service integrators instead of just being service providers. Through this, businesses share the risk and rewards for valuable partnership. This outsourcing practice can deepen the trust and understanding of both parties.

The future of call centers is already here. Technology has accelerated the way businesses connect with consumers. The heart of any business has always been taking care of consumers’ needs. At this time, where disruptive technology is ever-changing, simply providing customer support won’t cut it. To find out what your customer needs, you need data and technology to work in unison.  Outsourcing companies already have the infrastructure and skilled experts to make sense of data.

Technologies such as data analytics, predictive analysis, cloud computing, automation—they all improve outsourcing as companies keep up with the rapidly changing technological landscape and edge out competitors.

Here are some ways outsourcing providers are using technology to help in your business needs.

1. Data analytics and predictive analysis as the pillars of business intelligence

Data analytics is a critical business tool that gives insight into consumer patterns and behavior, helping any business understand its market. Making sense of data is difficult without a skilled outsourcing partner to sift through volumes of data and read between the numbers and patterns. These partners develop sound and strategic recommendations to their clients to enable the business to stand out against its competitors.

Predictive analysis goes hand in hand with consumer satisfaction. Most companies rely on predictive analysis to engage consumers by making their business solutions viable and attractive.

Outsourcing partners provide technical support services by creating programs that can predict who is most likely to take action, measure key metrics, and set the business for success by delivering the desired outcome.

2. Continuous advancements in cloud computing technology

Voluminous data storage and efficient output deliverability at reduced costs have always been the premise of cloud computing technology. To this end, outsourcing companies are well adept.

Software as a service (SaaS) technology proves highly useful for everyday business functions, even for small businesses. In contrast, platform as a service (PaaS) is a technology that can create customized applications. With the futuristic and sophisticated technological approach of infrastructure as a service (IaaS), cloud computing will keep outsourcing companies at the forefront of excellence. Together with their chosen outsourcing company partner, cloud hosting providers work hand in hand to deliver the best possible outcome to their clients.

3. Business process automation (BPA) is getting more diverse

Automation involves acing a seemingly repetitive, traditional process with less human intervention. For non-discerning tech users, it is easy to mix up terms.

Not to be confused with RPA as discussed above, business process automation (BPA) oversees the entire business process cycle with efficient data processing, saving time with reduced errors.

Outsourcing companies use BPA to optimize their resources. Marketing automation, employee onboarding, and IT service desk support are practical BPA applications, with many outsourcing companies already using the technology.

Albeit slightly similar to RPA when it comes to executing business functions effectively, BPA is different in terms of scope. BPA oversees the whole business process from end to end, while RPA is a tool embedded in one of the workflows to eliminate repetitive processes.

RPA and BPA also differ in that the latter uses a complex workflow model with heavy IT coding support operating on the backend to integrate the diversified system in the whole business process. On the other hand, RPA works on the user interface programmed to simulate human-like tasks. 

4. Data security to intensify efforts in keeping the information secure

Technology is developing new ways of ensuring that data is safe through end-to-end hardware and software-based data encryption, making information available to the right people. With proper security measures in place, data theft and leaks are challenging to carry out.

Trusting your business functions to an outsourcing company is one way to protect your data, as they specialize in stringent control measures, including data management system and recovery. Contract agreements also stipulate that breach of data and privacy could mean disastrous consequences. These measures are put in place to increase business confidence.


Digital tools have done great things by helping companies meet the demand in their industry. As motivations for utilizing technology are continuously evolving, so does the outcome to satisfy consumers. The future of call centers goes with the rapid evolution of time. Continuous investment in technology to optimize business operations at reduced costs and with the right resources is the core of every outsourcing firm’s customer-centric approach.


Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Place Your AD Here -PLACE YOUR Educational AD HERE FREE - TechRecur
- Place Your AD Here -PLACE YOUR Educational AD HERE FREE - TechRecur
- Place Your AD Here -PLACE YOUR Educational AD HERE FREE - TechRecur