In 2024, the business process outsourcing (BPO) industry is in for an exciting journey driven by new and ground-breaking technologies. While saving costs is still important, the focus is now on improving efficiency, introducing innovative solutions, and creating personalized experiences.

Looking ahead, some essential technology trends will significantly impact outsourcing. These trends present excellent opportunities for businesses to improve their operations, enhance customer experiences, and adapt to the changing demands of the digital era.

In this article, we will discuss the future technology trends in outsourcing to look out for in 2024. Let’s get started.

Outsourcing Trends to Look Out for in 2024

The BPO industry is undergoing continuous growth and transformation, with the global market expected to increase from $292.3 billion in 2022 to $477.7 billion by 2030, demonstrating a projected compound annual growth rate (CAGR) of 6.3%.

Businesses seeking outsourcing opportunities must stay informed about market trends to make strategic decisions and partner with the most suitable BPO service providers. Let’s go through them.

1. An Increase in the Use of Chatbots

The use of chatbots in AI-powered customer service is witnessing a noticeable surge. According to a Grand View Research report, the global market for chatbots is projected to reach USD 27.3 billion by 2030, with a remarkable compound annual growth rate (CAGR) of 23.3% from 2023 to 2030.

Chatbots offer a cost-effective solution compared to hiring and training human customer service representatives. Research by Juniper suggests that chatbots are expected to generate $11 billion in combined cost savings across retail, banking, and healthcare sectors by the end of this year, acting as replacements for human representatives.

Moreover, according to HubSpot blog research, 36% of surveyed customer service representatives emphasize that one of the most significant benefits of AI tools, particularly chatbots, is the ability to provide customer service around the clock.

This accessibility ensures that customer inquiries can be handled at any time without the need for outsourcing or additional hiring to cover later-day inquiries.

In fact, ArenaCX has indeed observed a tightening of the contact center outsourcing market corresponding to the advent of generative AI. That said, industry players and observers have expressed confidence that human talent will remain an integral part of the customer experience.

2. AI Will Be Leveraged to Provide More Customized Experiences

AI is poised to make customer experiences more personal than ever before. As artificial intelligence (AI) progresses, customer service interactions are poised to become more tailored to individual preferences.

HubSpot’s State of AI report reveals a strong confidence in AI’s capability to deliver personalized messages (50%) and experiences (46%).

AI tools use information about what a customer buys, likes, and how they act to make their experience memorable. This means suggesting products customers might appreciate and talking to them in a way that suits them.

3. AI Will Have More Advanced Forecasting Skills

Another trend that we are likely to see in AI-powered customer service is improved predictive capabilities.

As AI advances, it can more accurately forecast client wants and behaviors, potentially enhancing customer experiences and increasing customer satisfaction.

Of course, if contact center operations can react nimbly and flexibly to improved forecasting, this has the potential to dramatically improve efficiency. ArenaCX has seen firsthand the immense payoff when businesses invest in advanced forecasting capabilities combined with rapid-response operational flexibility.

For example, AI can predict when a consumer will likely make a purchase based on their behavior and purchasing history.

This data can trigger customer care interactions based on specific requirements and solutions, such as providing a discount or a personalized product recommendation at an ideal time in their trip.

4. Analyzing Big Data Will Become a Key Priority

Data has become the lifeblood of modern enterprises, and business process outsourcing (BPO) companies lead the way with a wealth of invaluable information.

BPOs can make data-driven decisions about labor distribution, task prioritization, and resource allocation by analyzing historical performance data and real-time workloads and detecting efficiency gaps. This assures the best use of human resources, increases productivity, and reduces operational bottlenecks.

BPOs that use big data analytics and machine learning gain a significant competitive advantage. The capacity to derive relevant insights from large datasets enables BPOs to make strategic decisions.

5. Cloud-Based Outsourcing Will Become the Norm

The introduction of cloud-based technologies has resulted in an enormous shift in how organizations conduct their operations, notably in outsourcing.

Companies can now use cloud computing services to streamline their outsourcing efforts, including IT infrastructure management, data storage, and software development tasks, especially cloud-based software for contact centers.

These solutions are typically easier to launch, easier to staff for and maintain, and are kept up to date with the latest advances in technology, combining to provide a significantly better total cost of ownership (TCO) and customer experience compared to more traditional on-premise solutions.

Plus, cloud-based outsourcing is projected to grow as more businesses realize its potential to improve operations and cut costs. This trend is anticipated to be driven by an increased adoption of digital technologies and the demand for remote work capabilities.

Cloud-based outsourcing is also expected to expand to include more industry-specific solutions. Providers will modify their services to match the specific needs of diverse industries, including healthcare, finance, and manufacturing, resulting in a more personalized outsourcing experience.

6. An Increase in Robotic Process Automation (RPA)

Robotic process automation (RPA) is expected to become a key trend in the outsourcing business in 2024. It uses software bots that mimic human actions, automate structured and rule-based operations, and increase operational efficiency while reducing dependency on human labor.

Outsourcing organizations that employ RPA enjoy a competitive advantage. They can provide their clients with affordable, high-quality, and efficient services. When clients see that their outsourcing partner uses cutting-edge technology to improve performance, they are more inclined to stay.

Recent statistics suggest that the global RPA market is on a growing trend. Between 2023 and 2030, it is expected to increase at a CAGR of 39.9%. This emphasizes the significant influence RPA will likely have on the outsourcing business in the future, confirming its place as a critical trend.

In fact, we wouldn’t be surprised to see the conversational AI and RPA trends merge over time into seamless solutions that integrate the front and back offices.

Conclusion

The technology trends covered here represent significant business opportunities to improve operations, increase customer satisfaction, and adapt to the evolving digital landscape. These developments — which include the growing adoption of chatbots, the integration of AI for personalized experiences, better forecasting capabilities, data-driven decision-making, and the introduction of cloud-based outsourcing — are set to change the outsourcing industry significantly. With the global outsourcing market on the rise, organizations that stay informed with the latest trends are the ones that will be able to offer clients cost-effective, efficient, and innovative solutions and position themselves as market leaders.