How outsourcing evolved in 2024 — and what to expect in 2025
Staffing Stream
How outsourcing evolved in 2024 — and what to expect in 2025
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Outsourcing can be a fundamental aspect of any company aiming towards improving its efficiency, reducing expenses and getting talent from outside the boundaries of the nation. Outsourcing improved in several aspects in 2024 including economically and technologically. The year provided the foundation for strategies such as nearshoring as well as the application of AI, as many businesses process outsourcing (BPO) firms started integrating AI into their process to cut costs. To survive in the competitive and quickly expanding global economy in 2025, businesses will need to plan and use a staffing strategy to become more efficient.
Trends that Dominated Outsourcing in 2024
The rise of nearshoring. One of the leading strategies that showed growth in 2024 was nearshore staffing as companies shifted from using outsourcing just for back-end functions to using outsourcing for more specialized positions. Mexico proved to be the go-to country due to proximity with the US, which included benefits like being in the same time zone, cultural alignment and easier travel as well as Spanish-speaking employees aiding in real-time business operations.
Focus on specialized talent. With the growth of integration of teams, the demand for highly skilled professionals exploded, and as such, outsourcing became a common practice. It included the highest paying positions, such as IT specialists, designers and financial analysts.
Technology integration. AI and automation tools became integral to outsourcing operations. In the world of BPO, the integration of tech worked wonders. Businesses adopted a the use of modern technology to aid with the never-ending quest to maximize the number of processes they could outsource and streamline, alongside an increase in better performance.
Despite becoming better, outsourcing still faced several challenges in 2024:
Economic uncertainty. With all the economic uncertainty in the world, companies needed to find strategies that would allow them to cut costs without sacrificing growth.
Talent retention. As companies use offshore for more important functions that need more collaboration and communication, keeping talent engaged, particularly in offshoring models, proved challenging due to cultural and operational misalignments.
Integration issues. Aligning external teams with internal workflows and company values remained a key obstacle for many organizations.
What to Expect in 2025
Expansion of nearshore solutions. One thing for sure is that Mexico will gain more market share with this nearshoring concept, especially with other countries in the US. The need to move work to another country is going to be a hot topic in 2025, especially for industries that need experts and real-time collaboration.
Increased use of technology. For outsourcing to be effective, mostly for BPOs, AI, machine learning and communication tools will be used.
In-office collaboration. More and more, companies are returning to work from office to increase not only collaboration but also innovation. Companies will look for a partner who can provide office space for their employees.
To leverage outsourcing effectively in 2025, businesses should:
Evaluate existing partnerships. If you are currently using a staffing strategy, evaluate if the partner you have is the right one to continue your growth. If you are new, make sure you do good research on which firm to use.
Embrace nearshoring. Consider nearshore staffing for roles requiring strong collaboration and cultural alignment, mostly if your company is in the US or Canada.
Invest in technology. If you are using offshoring or nearshore as a staffing strategy, make sure to invest in technology for collaboration and communication.
The area of outsourcing is going through big changes, and it is clear that only those businesses that are prepared for them will be in positive conditions in 2025. If last year proved the value of nearshore staffing, specialized talent and outsourcing with ethical values, then in 2025 companies must embrace this.