Key Takeaways:
- Pandemic sees a significant 41% increase in businesses opting for outsourcing since 2019, with 48% of UK companies now relying on it.
- Virtual Business Assistant firms, notably SpareMyTime, experience a meteoric rise, recording a 325% growth surge post-pandemic.
- Outsourcing now stands as a primary strategic choice for businesses, especially startups, driven by a need for cost-efficiency, flexibility, and the promise of best practices.
From Necessity to Strategy: The Outsourcing Boom
In an ever-changing business landscape, UK companies have pivoted towards an outsourcing model, recognizing it not just as a necessity but as a forward-thinking strategy. SpareMyTime, a leading player in the virtual business assistance domain, registered an astounding 325% growth post-pandemic, underscoring the trend’s ubiquity and vitality.
The Figures Speak: Outsourcing’s Ascendancy
Drawing insights from industry giants like Deloitte, IBISWorld, and YouGov, a clear picture emerges: global spending on outsourcing might reach a staggering £571 billion by 2023’s end. This uptrend, characterized by a 41% growth since the pandemic struck, shows that businesses are actively seeking alternative solutions to tackle emerging challenges.
In 2022 alone, UK businesses channelled a whopping £500 billion into outsourcing. Diving deeper, IT outsourcing, integral to modern operations, grew by 22% from 2019, while Business Process Outsourcing is on track to attract £212 billion in 2023, a commendable 19% jump since 2019.
The Inflation Factor: Outsourcing as the Panacea
With inflationary winds sweeping the globe, businesses are pressed hard to ensure they remain financially robust. SpareMyTime’s founder, Melisssa Gauge, articulates that during such turbulent times, outsourcing emerges as a refuge. As operational costs soar, businesses require flexible strategies, and outsourcing provides just that, allowing firms to seamlessly navigate economic headwinds.
Business Process Outsourcing: The What and Why
A deep dive into Business Process Outsourcing (BPO) reveals its integral role in a company’s operations. BPO spans across two main domains: back-office and front-office functions. Companies increasingly depend on external experts for back-office tasks like accounting, IT services, and regulatory compliance. Simultaneously, front-office functions, centring on customer interactions such as technical support, also find their place in the outsourcing arena.
The exponential growth in BPO is fuelled by the startup ecosystem. A striking 753,168 startups emerged in the UK between March 2021 and 2022, signalling a robust demand for services like IT support and bookkeeping.
Virtual Assistance: A Deeper Insight
Virtual assistants, like those under SpareMyTime’s umbrella, shoulder diverse tasks. Diary management tops the list at 22.62%, followed by expense support and inbox management. Gauge reiterates the shifting demands of scaling businesses. As their needs evolve, so does the demand for high-calibre support. Firms like SpareMyTime stand ready to bridge this gap, offering an array of professionals to meet dynamic business requirements.
Reasons to Outsource in 2023: A Breakdown
SpareMyTime’s founder, Melissa Gauge, offers compelling reasons for outsourcing:
- Risk Mitigation: Outsourcing shields businesses from recruitment pitfalls.
- Cost-efficiency: Avoiding recruitment costs means better financial management.
- Adaptability: As business needs shift, outsourcing offers the flexibility to realign swiftly.
- Consistency is Key: Ensuring sustained growth demands unwavering consistency – outsourcing promises this.
- Adopting Best Practices: With exposure to diverse business landscapes, outsourcing firms can offer tried-and-tested best practices.
- Capacity Augmentation: Compliance and data processing often get overshadowed in fast-paced environments. Outsourcing ensures these remain priorities.
Final Thoughts
As businesses wade through the post-pandemic waters, the allure of outsourcing becomes undeniable. From startups to established entities, the shift towards an outsourced model is reshaping the UK business landscape, promising efficiency, flexibility, and future-ready operations.
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