Vidya Plainfield – Growth Officer at TechSpeed Inc.
2024 was a year marked by growth in the global outsourcing sector and even more rapid growth in the use of AI-powered solutions for core business functions. So, what does the new year hold for leaders in the business process outsourcing (BPO) field?
1. Hybrid Outsourcing
Offshore outsourcing can reduce labor costs. However, some businesses still have reservations about offshoring key business processes due to practical challenges like maintaining oversight, quality control, schedule coordination and open lines of communication.
This is why I anticipate that hybrid outsourcing models will grow in stature over the coming year. Hybrid outsourcing is an approach that combines local leadership and onshore project management with access to cost-effective offshore talent pools. The result is 24/7 access to BPO partners and the ability to tap into labor in markets with lower operational costs.
2. Business Startup Support
Today’s BPO solutions need to be aligned with the needs of startups and small businesses. For fledgling businesses with limited capital, small in-house teams and modest infrastructural capabilities, BPO is an option that can offer a cost-effective and accelerated way to scale their operation.
In 2025, I expect that a growing number of small businesses will turn to BPO vendors for access to external project management, specialized talent, AI tools and more.
3. Human In The Loop (HITL) Solutions
AI and machine learning (ML) technologies are making it possible for us to work more effectively, efficiently and accurately. But these technologies require human input, insight and intuition.
This is especially true for startups. Even as a growing number of smaller businesses seek to leverage AI-based solutions, many lack the background or expertise needed to make the most of these technologies. I’m noticing an increase in fledgling businesses with small staffs, modest technological infrastructure or limited end-user experience turning to BPO for HITL solutions.
As more startups venture into AI-based tech, the need for human support will only grow. I predict that human-powered AI and ML optimization services like tagging, categorization, annotation and record enrichment will take on added importance in 2025. To stay competitive, BPO vendors should consider providing HITL solutions as they become more vital to ensuring we leverage new technologies safely, thoughtfully and effectively.
4. Enhanced Emphasis On The Customer Experience
A growing number of businesses are recognizing customer satisfaction as a key measure of success. Because of this, BPO vendors who can offer access to 24/7 human support, AI-powered chat and social media monitoring tools can expect an uptick in businesses turning to them for faster, more responsive, more effective and more personalized customer support.
5. Meaningful Content Moderation
Businesses have a responsibility to their brand and customers to protect their online properties from harmful content, internet trolls and other not-safe-for-work (NSFW) content. Moreover, the proliferation of bot technology means that company properties are vulnerable to a whole new and evermore permeating type of threat. Vendors should approach this trend as an opportunity to offer moderation, oversight and protection of these properties as the scope of this responsibility and the digital marketing landscape continue to expand.
6. AI-Powered Data Extraction
AI-based data extraction will be a particularly important 2025 outsourcing trend. Businesses spend an extraordinary amount of time managing, tracking and consolidating information from across a multitude of sources, including large volumes of documents, images, PDFs, invoices, contracts and even handwritten logs.
Fortunately, advances in AI technology, such as large language models (LLMs) and optical character recognition (OCR) technology, make it possible to streamline, automate and consolidate data from all of these sources in a single place. While some businesses can implement this technology in-house, I expect those who find it too costly to turn to BPO vendors that capitalize on the opportunity to offer these solutions.
7. Online Data Mining And Mega Database Creation
Top third-party providers offer advanced web data collection tools that can quickly extract, filter and evaluate web content from an extremely wide range of online sources. This technology can strengthen the value of research, enhance digital marketing strategy and help businesses build out an extremely valuable asset–a mega database rich with company information, consumer data, market research and more.
I expect 2025 outsourcing trends to include a strong focus on fast, encompassing and continuously updating data mining and databasing solutions. Vendors can take advantage of this by offering access to these advanced data management services through customer-facing subscription services to drive their customers’ growth with minimal ongoing overhead.
8. Ethical Outsourcing
As a new generation of entrepreneurs and consumers places a stronger emphasis on ethical business practices, I anticipate that BPO providers who are grounded in ethical practice will see a rise in their stature over the coming year and beyond. Outsourcing certain business practices can create exposure to shortcomings in areas like fair labor, public transparency and environmental protection. This is why BPO vendors should uphold a strong track record for ethical business practices, and companies should seek out providers who make this a priority.
Staying On Trend In 2025
Opportunities abound for BPO leaders in 2025. However, there are some challenges that we need to be aware of. For instance, while rapid advances such as machine learning and AI are helping to enhance our capabilities, early adoption of new technology can be risky. Implementing new technology may be costly and disruptive. And with customer expectations also shifting rapidly, there is a lot of pressure to choose solutions that are adaptable and scalable.
Minimize the risk of disruption or failure by exploring all of your options, training your personnel comprehensively in the use of new technology, and providing meaningful support during and after implementation. If you do this effectively, you may be able to take a lead role in what I expect to be the most impactful trend in 2025—the continued evolution of outsourcing agreements, from mere cost-cutting measures to long-term, strategic business partnerships.
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