Outsourcing in 2020

by Daniel Ramsey

Skilled workers are needed to make a business run. In the past, hiring people was possible only if a business had enough capital to sustain new hires. Today, internet connectivity allows even small businesses to find the exact help for the tasks at hand while limiting the costs. Whether automated through AI or outsourced to remote workers, virtual assistants are powering a sizable percentage of business initiatives today.

Research shows that 57 percent of U.S. companies have increased their use of outsourcing. The growing demand for outsourcing providers has also changed the nature and function of these strategic partnerships. This evolution is reshaping how we do business.

What does the rise and evolution of outsourcing mean for small business owners? The cost-effectiveness of using virtual assistants will increasingly impact productivity. Whereas in the past, outsourcing was reserved for big business, today it has become an essential component for a business of any size.

I work with more than 5,000 clients from a variety of industries that include real estate, technology, mortgage, healthcare and human resources, and I have seen a dramatic increase in demand for virtual assistants in the small-business sector. Technology has made outsourcing an affordable option for entrepreneurs. It gives small businesses access to a global talent pool that would otherwise be beyond their reach. Startups are able to find workers with specialized skills while managing limited resources. As the demand for virtual assistants rises, so too does the quality of their work. From large corporations to small startups, there are virtual assistants in nearly every business sector.

Although some see outsourcing as a threat to American business, the fact remains that the global market relies on it. In 2018, the global market for outsourcing was worth $85.6 billion and the U.S. is the single biggest outsourcing country in the world. Outsourcing has undeniably made a powerful impact on business growth and productivity.

Today, 59 percent of businesses use outsourcing to reduce their expenses. To remain competitive in the 2020 business market, the question is no longer if a business should outsource; rather, what it should outsource.

Daniel Ramsey is author, speaker, philanthropist and serial entrepreneur, founder and CEO of MyOutDesk and founder of MOD Movement, a California nonprofit (501c3) corporation that serves underprivileged communities both in the U.S. and abroad.

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