The Future of Staff Outsourcing: BPO Industry Trends in 2024

An examination of emerging trends shaping the BPO industry from 2024 onwards, including digital transformations, generational management, and market expansion.

Adapting to changing market conditions is essential for sustained growth in our global economy. The year 2019 marked a pivotal moment for digital transformations, highlighting the necessity for technological advancements and a shift towards remote work. In the Staff Outsourcing sector, online communication tools have become indispensable. Platforms such as Zoom and Google Meet saw increased usage for online meetings, and flexible work models became the norm. The use of chatbots and virtual assistants surged as face-to-face services faced stricter regulations. The Internet of Things (IoT) made data and smart devices more accessible across regions, and enhanced health and security protocols were implemented everywhere. Lean and agile businesses thrived, emphasising the importance of market analysis and risk management research.

In 2024, staying abreast of BPO market trends will ensure your business remains current and ahead of the competition. New tools, trends, and methods of efficiency are not only cost-effective but also crucial for making informed decisions and optimising resource use. Here are some emerging trends in the world of Staff Outsourcing.

1.  The Growth of AI

Artificial Intelligence (AI) involves the simulation of human intelligence processes by machines, such as reasoning or problem-solving. Initially introduced in the 1960s, AI has seen a significant surge in popularity with tools like OpenAI’s ChatGPT and Midjourney’s image generation tool. From generative AI to deep learning and Natural Language Processing (NLP), AI encompasses various technological categories and applications. In the BPO industry, AI is utilised in numerous applications, such as using NLP software for technical writing. Tools like Tableau are employed for data visualisations and predictive sales forecasting. Even platforms like Zapier and HubSpot incorporate AI for sales, scheduling, notifications, and email marketing automation. The integration of AI with automation and omnichannel solutions is a key driver of enhanced customer experience in the industry. AI’s ability to anticipate customer needs and provide instant solutions highlights its potential to reduce menial tasks and allow business owners to focus on more critical areas of their work.

2.  Automation

There is an ongoing debate in the private sector about the efficiency of Staff Outsourcing versus automation. Some BPOs have implemented both, resulting in significant productivity increases. According to a study by Market Research Future, the global automation market is expected to reach $214.64 billion by 2025. In the BPO industry, automation involves integrating technology, processes, human capability, and organisational standards to reduce costs and errors. BPO automation transforms manual tasks, such as data entry, into data aggregation through technology. This can involve software, IT solutions, or Robotic Process Automation (RPA) to assist in business functions like technical writing and data management.

3.  Expanding into New Markets

The global BPO market is projected to grow from $57.67 billion in 2023 to $110.74 billion by 2031, with a growth rate of 9.1% CAGR from 2024 to 2031. In the UK alone, the BPO market’s estimated revenue is expected to reach $29.31 billion in 2024. Technological advancements, foreign investments, and government-backed tax incentives in emerging markets have bolstered industry growth. For instance, Tirana City in Albania has become a significant BPO hub with over 800 call centres, employing approximately 12% of its 180,000 residents. Albania’s low cost of living makes it a prominent player in the European nearshore customer service industry. Similarly, Poland’s major cities like Warsaw, Krakow, and Poznan are significant IT Staff Outsourcing centres. Cape Town, South Africa, has seen a surge in Staff Outsourcing services for finance and accounting. Businesses should conduct thorough research based on the specific business functions they wish to outsource, considering the economic, socio-cultural, and political stability of the target region.

4.  Generational Transformations

Following the shift to remote work, many BPOs experienced higher satisfaction and retention rates. Today, flexible schedules, improved online communication, and the integration of data security with employee monitoring software enable BPO companies to hire skilled workers from any region without incurring high variable costs. For large BPOs, employee engagement and retention are top priorities. In 2024, the Gen Z workforce (born between 1996 and 2010) is entering the job market in increasing numbers. This tech-savvy generation prefers companies with strong values, brand equity, and a commitment to equality, diversity, and the environment. Consequently, BPOs with active community engagement and fair wages are more attractive to jobseekers. Gen Z jobseekers, who grew up with social media, favour back-office jobs and roles in advertising, marketing, and public relations, as reported in a Jobstreet survey. Accounting, audit, and tax services also rank highly. BPOs looking to tap into this workforce should engage partners in these fields.

5.  Cybersecurity and Cloud-Based Solutions

Cybersecurity is a fundamental pillar of the BPO workforce system, given its heavy reliance on digital technology. Practices such as data security, network security, and preventing unauthorised access are critical. The rise of the Internet of Things (IoT) and cloud-based solutions has increased security concerns due to data storage on third-party servers. While both innovative and challenging, BPO companies should invest in cybersecurity education for their workforce to prevent social engineering, phishing, malware, and denial-of-service attacks. Establishing procedures for reporting security incidents and continuously monitoring system and network security performance are essential. BPOs should carefully select cloud-based platform/service providers, ensuring best practices like data encryption, certifications, and robust security capabilities. Despite the challenges, cloud-based solutions offer numerous benefits, such as cost-effectiveness, scalability, and versatility.

As more businesses opt for Staff Outsourcing to support their operations, tracking and analysing key market trends is vital for long-term growth. BPO Ninja is your source for up-to-date information on Staff Outsourcing in the Philippines. Whether you are a small or medium UK business seeking new team members, BPO Ninja can help you build your own remote team. Reach out to a member of our staff for further assistance through our contact form here.