Jose Herrera is the CEO and cofounder of Horatio, a tech-enabled customer experience and business process outsourcing company.
In the past 12 months, research from firm Ernst & Young has shown the surging nature of AI adoptions, with the ability to offer quick solutions and personalized support as key to maintaining a competitive edge. In order to achieve these rigorous goals, many entrepreneurs are looking to outsourcing.
In simple terms, outsourcing is defined as any business practice that is delegated to a third party to “perform tasks, handle operations or provide services for the company.” Once primarily viewed as a means to trim costs, I have seen outsourcing evolve into a sophisticated business strategy that offers more than financial savings.
Recent data suggests that by 2030, the business process outsourcing (BPO) market will be valued at more than $525.23 billion. In the coming year, I believe many will find it essential to partner with external providers for specific daily tasks.
Based on my experience leading a business that helps with outsourcing, here are three strategies you can take:
1. Focus On Your Core Competencies, Offload The Rest
One of the most cited reasons companies love and utilize outsourcing is that it allows staff members to take time-consuming, repetitive or specialized tasks that don’t directly contribute to or enhance their core mission off their plates. Not surprisingly, according to data from Deloitte’s Global Outsourcing Survey in 2023 (download required), over 70% of businesses reported outsourcing at least one business function, with many citing the ability to focus on core competencies as the main reason why.
For service-based businesses, this may mean things like delegating core customer support functions, allowing leadership to further delve into specific feedback from customers or even expanding their business functions. For product-based companies, outsourcing can provide the opportunity to focus on their bottom lines, innovation, research and development (R&D) and improving product quality.
Deciding which tasks to keep in-house and which to outsource depends on your company’s size and industry. A helpful approach is to focus on tasks that are critical to your company’s competitive advantage and core operations and outsource nonessential activities that support your business on a day-to-day basis.
For a smooth onboarding, it is essential that the outsourcing partner you choose is well-aligned with your company’s unique processes, such as your marketing strategies and core values, so that they can be a true extension of your team.
2. Provide Increased Omnichannel Touchpoints In 2025
In a post-Covid world, businesses that operate across several time zones and provide omnichannel touchpoints have a significant competitive edge. In fact, data from McKinsey & Company found that omnichannel customers are more prolific shoppers on the whole.
As I predicted in 2024, the integration of omnichannel support systems—i.e., phone, email, live chat, social media, etc.—will remain imperative for businesses, but they can often be costly to build or expand upon. Outsourcing enables businesses to efficiently expand their omnichannel capabilities without the need to invest heavily in resources such as technology or staff.
Outsourcing partners often have established infrastructures in place, including multi-channel contact centers and AI-driven tools, which allow the clients they serve to have dynamic 24/7 support across multiple channels at a fraction of the cost of what it would take to house those capabilities internally.
When determining the right balance between investing in internal systems versus outsourcing, it is helpful to align the omnichannel support strategy with broader business goals. Are you focused on innovation, rapid growth or cost reduction? For example, if your goal is rapid scaling or entering new markets quickly, outsourcing tends to offer more flexibility.
3. Unlock Greater Scalability And Future-Proofing
A scalable business is one that dynamically can grow without being hampered by its own infrastructure. With this in mind, it makes sense that recent data found that “about 60% of companies report that outsourcing provides them with the ability to scale operations up or down quickly in response to market demands.”
This is especially important for times of disruption—e.g., global wars, which will unfortunately continue in 2025—and regularly known times of chaos, such as holidays, which have an especially big impact on e-commerce. Businesses that continue or choose to outsource can access more time to manage infrastructure.
Looking Forward
In the face of disruption in the year ahead, I believe it is more essential than ever for businesses to stay ahead of the curve and delegate tasks so they can focus on core competencies.
Outsourcing can take a figurative and literal load off of internal teams and allow your employees increased flexibility and the headspace to be hyper-focused on continuous growth and a mission-driven mindset.
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