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Research Report

2021 Trends in Outsourcing

Top-tier service providers have advanced far beyond the days when outsourcing primarily meant sending call volumes offshore where they could be handled at a lower price.

Technology companies are increasingly forming strategic relationships with outsourcers to not only help scale support operations cost-effectively and guarantee a high-quality customer experience, but also to accelerate digital transformation.

This report will outline two 2021 trends in outsourcing.

The first trend is an increase in outsourcing contracts, as many tech companies who were attempting to manage their own offshore operations found they did not have the infrastructure or business continuity planning to shift overnight to a 100% work-at-home model.

With the tremendous growth in SaaS/cloud businesses, in which there is immense pressure to create fast-growing and predictable revenue streams to drive increased valuation, sales and marketing costs tend to be extremely high as a percentage of revenue. While traditionally companies do not outsource the sales and marketing functions, in recent times this function also is seeing success stories in outsourcing. An outsourcing provider can not only help scale customer acquisition and retention but also do it more cost-effectively and help increase customer lifetime value.

The second trend is that by having to meet the needs of many large enterprise customers, leading service providers have made great advances in sophisticated digital capabilities, including artificial intelligence and robotic process automation, and are creating separate businesses to make these digital capabilities available to customers.

Companies should identify opportunities to work with best-of-breed outsourcers to not only more effectively scale operations, but also accelerate development of digital expertise in support, and across the enterprise.

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Authored By:

John Ragsdale

Distinguished Vice President, Technology Research, TSIA

Sunil Mittal

Executive Vice President, CSS Corp

Publish Date: January 28, 2021

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