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outsourcing trends

The world is changing every day and so are the trends. Hence, it is important to navigate the current change with a keen awareness of the global market dynamics, harnessing the power of digital transformation, and fostering a culture of agility to foster innovation and maintain a competitive edge.

In this blog, we will discuss the outsourcing trends you should expect this year. Read on to find out. 

What is Outsourcing?

The business practice of outsourcing involves hiring someone from outside your organization to produce things or provide services that were formerly completed in-house by staff members and employees. As such, it may have an impact on a variety of jobs, including those in customer service, manufacturing, and the back office. 

Its roots can be traced back in the year 1989 when it was first recognized as a business strategy. As time went by, it became an integral part of business economics throughout the 1990s. 


However, like any other business concept, it also comes with criticisms as it was believed to have caused the loss of domestic jobs, particularly in the manufacturing sector. 

On the other hand, supporters of this business practice said that it was helpful as it assists businesses in their allocation of resources where they are most effective, and that outsourcing maintains the nature of free-market economies on a global scale. 

Outsourcing in the Philippines

The Philippines has become a popular outsourcing destination for companies in recent years. The nation has a wealth of talented workers in a variety of fields. These hardworking Filipino employees are willing to work hard to support the growth of the company with which they are affiliated.

The earliest instances of Filipino outsourcing date back to the 1970s, when American businesses began using Filipinos to perform data entry for them since the Philippines was a strong source of English-speaking laborers. Because of its high-quality workforce and cheap cost of living, the Philippines was a great place to outsource since American companies could pay workers low rates.

The need for English-speaking outsourced labor grew over time. As a result, outsourcing firms were able to increase the number of employees they hired and trained for these positions. 


The 1990s saw a sharp increase in the outsourcing sector, with the Philippines emerging as Southeast Asia’s top BPO location. As the sector gained traction in the 2000s, international corporations began to outsource their IT and customer support functions to the Philippines.

The Philippines has become a significant outsourcing hub, and the BPO industry now accounts for a sizable amount of the country’s GDP. Working with outsourced teams has been easier thanks to technological developments than it was in the early days of outsourcing in the Philippines. 

Factors that Affect the Trends in the Outsourcing Industry

The following are some of the several factors that have a long-standing and growing impact on outsourcing trends: 

Technological Advancements

The outsourcing landscape is changing as a result of the rapid improvements in technology, including automation, robots, and artificial intelligence (AI). These technologies enable the outsourcing of previously non-outsourced tasks while both increasing efficiency and lowering costs.

Cost Pressures

Outsourcing is still primarily motivated by cost reduction. Outsourcing decisions may be influenced by regional variations in labor costs, economic conditions, and exchange rate swings.

Cybersecurity Threat

Outsourcing contracts now place a greater emphasis on cybersecurity due to the surge in cyber threats and data breaches. To safeguard their data and systems, businesses are searching for outsourcing partners with strong cybersecurity protocols.


Remote Work Trends

Remote work and distributed teams have become more popular since the COVID-19 pandemic. Because more work may be done remotely, there may be less demand for actual outsourcing facilities, which has an impact on outsourcing.

Industry-specific Trends

Unique outsourcing trends exist in several industries. Medical billing is one area where the healthcare sector might outsource, whereas the financial sector might concentrate on regulatory support and compliance.

Scalability and Flexibility

It is essential to have the capacity to quickly scale up or down activities. Businesses seek out outsourcing partners who can adjust to shifting market conditions and company requirements.

Competitive Landscape

The fierce competition in particular industries may affect outsourcing trends. To obtain a competitive advantage or close the gap with industry leaders, businesses may choose to outsource.

As you contemplate outsourcing services for your business, these factors should serve as guiding principles. Navigating the outsourcing landscape successfully requires a nuanced understanding of these influences, ensuring that your outsourcing decisions align with the evolving dynamics of the industry. 

Outsourcing Trends To Expect in 2024

Here are some trends in outsourcing that you should expect:

Business Process Outsourcing Trends

Hiring a third party to handle a business process or function—like customer service, accounting, human resources, or marketing—that is unrelated to the client’s core strengths is known as business process outsourcing. Several trends are expected to impact the BPO sector in 2024, including:


  • A rise in the need for virtual assistants as companies search for methods to manage their workflow more efficiently and concentrate on their core competencies. 
  • Process automation and artificial intelligence (AI) can lower costs and turnaround times while increasing productivity, accuracy, and customer happiness. 
  • Pay attention to the employee experience. BPO companies work hard to draw and keep talent by providing opportunities for training, career growth, competitive pay, and benefits. 
  • The expanding market for specialized business process outsourcing (BPO) services as customers look for more specialist and customized solutions to meet their unique demands and problems. 

IT Outsourcing Trends

The effective delivery of IT-enabled business processes, application services, and infrastructure solutions for business objectives is known as IT outsourcing, and it involves the utilization of external service providers.

Utility services, software as a service, and cloud-enabled outsourcing are all included in outsourcing. It assists clients in creating appropriate sourcing strategies and visions, choosing appropriate IT service providers, drafting the best contracts, and managing agreements for long-term, mutually beneficial partnerships with outside vendors.


Some of the trends that are expected to shape the IT outsourcing industry in 2024 are:

  • Cloud-based platforms and services are being used more frequently because they are more affordable, flexible, and scalable for both customers and providers.
  • More people should use automation and artificial intelligence technologies because they can lower risks and errors made by humans while increasing productivity, quality, and innovation. 
  • In light of the COVID-19 pandemic and its consequences, customers are demanding greater protection and compliance from their providers, which has led to an increasing relevance of data privacy and security.
  • The evolving role of IT outsourcing providers, as they shift from being mere vendors to being strategic partners who can offer value-added solutions and insights.

Digital Outsourcing Trends

A recent advancement in emerging technology is digital outsourcing. Global demand for business process outsourcing is expected to continue growing at a rapid rate. 

To establish a smooth working relationship between enterprises and their outsourced partner, digital outsourcing makes use of cloud-based collaboration platforms, digital communication tools, and remote work arrangements. 

In 2024, keep an eye out for the following trends in digital outsourcing:

  • Increased usage of artificial intelligence and cloud computing since they make it possible for clients and suppliers to access data, tools, and resources more quickly and easily.
  • Data analytics and optimization are growing important since they aid in gauging and enhancing the effectiveness and results of online initiatives. 
  • Growing relevance of sustainability and social responsibility, as clients and suppliers seek to match their values and ambitions with environmental and social reasons. 
  • Customers’ and users’ expectations are changing, and they want more relevant, personalized, and interactive digital experiences.

HR Outsourcing Trends

HR Outsourcing is a contract between an employer and a third-party provider in which the employer transfers management and accountability for specific HR tasks to the external supplier. 


Outsourcing one specific facet of one HR function, such as applicant tracking for affirmative action purposes, might be as specific as outsourcing the entire human resource department.

Let’s take a look at the HR outsourcing trends expected this year: 

  • A greater emphasis on manager and leader effectiveness as HR directors understand the need to equip their management team with the competencies needed for the workplace of the future.
  • Increased use of cloud-based HR platforms and systems since they are more user-friendly, secure, and functional for clients as well as suppliers. 
  • As HR directors use data analytics and insights to enhance their plans and results, there is an increasing need for data-driven decision-making. 
  • Employee self-service systems (ESS) are becoming more and more popular as a result of their ability to enable staff members to access and handle their own data and requests. 

Accounting Outsourcing Trends

The practice of employing outside accounting experts or companies to manage particular accounting tasks or the full accounting process on behalf of a company is known as accounting outsourcing. It entails assigning financial duties and obligations to an outside team with specialized knowledge, freeing the company to concentrate on its main operations and long-term goals.

Here are some trends:

  • Increased use of artificial intelligence and automation in accounting procedures, as they can minimize errors, risks, and costs while enhancing speed, quality, and compliance.
  • Increased use of cloud-based accounting platforms and software since they provide enhanced integration, scalability, and accessibility for both customers and suppliers.
  • The growing significance of data privacy and cybersecurity as customers expect greater security and openness from their service providers.
  • The changing nature of accounting outsourcing providers, who are now more like strategic consultants with the ability to deliver insights and solutions with added value than just service providers.

Understanding the outsourcing trends of 2024 is imperative for businesses to maneuver through a terrain characterized by a growing dependence on artificial intelligence, and customized solutions. Success will mostly depend on embracing cloud-based technologies and forming strategic alliances, highlighting how crucial it is to keep up with these fast-paced changes in the sector.

Grow Your Business With PrimeOutsourcing’s Services

In this era of rapid change, emerging outsourcing trends continue to alter the way businesses work. Outsourcing became not just a strategic advantage, but also a necessity for businesses to stay resilient in the ever-changing industry.

If you are looking for an outsourcing service provider, PrimeOutsourcing is here to help you. At PrimeOutsourcing, we pride ourselves on delivering comprehensive outsourcing solutions tailored to meet your specific business needs. Whether you require IT expertise or seek efficiency in accounting processes, trust PrimeOutsourcing for reliable, cost-effective, and customized outsourcing services. Contact us today!

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About the Author: Mary Camille Dela Peña