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The real estate industry is transforming, especially after the pandemic. In 2023, 12% of businesses relied on business process outsourcing (BPO) for real estate management.
Although cost efficiency remains a significant factor in real estate BPO services, it’s no longer the sole driver. From specialized talent and technology to sustainability and hybrid arrangements, BPO providers focus on more strategic ways to meet industry demands.
If you want to learn more about the trends in real estate outsourcing services, this article is for you. It explores the drivers and practices shaping the sector and how providers meet them.
1. Increasing focus on talent specialization
The real estate market is seeing a growing demand for specialized services beyond the traditional role of a real estate agent. This trend is fueled by the increasing complexity of transactions and marketing strategies, which often involve the following:
- Legal and regulatory landscape (e.g., legal documents, contracts, and relevant laws)
- Financial intricacies (e.g., jumbo loans, investment property considerations, tax implications)
- Management of multiple parties (e.g., buyers, sellers, investors, and developers)
- Targeted marketing (e.g., digital marketing, social media management, and data analytics)
- Virtual tours and technology (e.g., three-dimensional or 3D tours, virtual staging, and drone photography)
- Content creation (e.g., market reports, property descriptions, and social media posting for engagement)
In response to this trend, real estate outsourcing service providers seek specialized, qualified professionals for these tasks. To better understand how this is possible, it’s best to first answer the question: What is BPO?
BPO is the practice of delegating certain business functions to a third-party team. Service providers create a broader talent pool composed of real estate industry experts. To manage the global labor shortage, they usually explore new, less competitive markets to hire talent.
With BPO, real estate clients can work with experienced, trained professionals for various tasks. According to Deloitte’s 2023 global shared services and outsourcing survey, 48% of businesses accessed more talent through the practice.
2. Surging demands for advanced technology
The rise of automation and artificial intelligence (AI) affects many industries, and BPO in real estate is no exception. Providers are embracing advanced technology to streamline repetitive tasks, such as data entry, document processing, and scheduling.
These technologies help clients increase efficiency, reduce errors, and focus on processes that require human judgment and interaction. In Unity Communications’ real estate case study, its BPO team helped a client save 10–20 hours weekly.
Beyond automation, this trend in real estate outsourcing allows firms to improve their services. Here are some ways advanced technologies leveraged by BPO providers can help upgrade your services:
Virtual and 3D modeling
Gone are the days of static photos. BPO providers use specialized equipment and software to create more immersive and engaging property experiences for potential buyers.
Virtual and 3D modeling allow prospects to view and explore the entire property and its rooms online from a 360-degree angle anytime, any day. They also provide a realistic sense of space with a digital replica of the property. Potential buyers can access detailed floor plans, customize spaces, and obtain appraisals remotely.
Data analytics and market insights
Data is the new currency in the real estate market. Outsourcing teams harness data to generate valuable market insights on the following:
- Market trends: Identifying changes in listing prices, inventory levels, and selling times in specific neighborhoods
- Property valuation: Generating more accurate property valuations by considering recent sales of comparable properties, neighborhood demographics, and market trends
- Investment opportunities: Analyzing data to identify emerging neighborhoods or property types with high potential investment returns
Cloud-based platforms and collaboration tools
Cloud computing lets users store and manage data anywhere with an internet connection. This new trend fosters seamless collaboration during a real estate transaction and provides the following benefits to outsourcing service vendors:
- Streamlined communication: The cloud platform allows real estate firms, BPO providers, legal teams, lenders, and clients to share real-time messages, updates, and project discussions.
- Improved document sharing: The cloud technology automatically tracks document changes and lets authorized users quickly revert to previous versions if necessary.
- Enhanced transparency: Cloud platforms can ensure users can access only the information and documents they need for the job.
3. Growing shift toward sustainable practices
Clients in the real estate and BPO industries expect businesses to adopt more sustainable practices. Most prefer to work with companies that engage in green initiatives.
Here’s how outsourcing providers can help real estate firms meet this growing demand:
Reduced paper consumption
Traditionally, the real estate industry relies heavily on paper for most transactions, contracts, disclosures, marketing materials, and property fliers. Real estate outsourcing companies combat this by adopting various paperless operations.
Electronic document management systems (EDMS), digital signatures, and cloud-based storage are how outsourcing works to reduce paper consumption. These innovations eliminate the need for physical copies, filings, and clutter.
Energy efficiency
As mentioned, one trend in real estate outsourcing is the reliance on technology for efficient services. However, this requires significant energy consumption, which increases carbon emissions.
To minimize their footprint, BPO providers implement the following strategies:
- Cloud-based solutions: This technology reduces the need for on-site servers and data centers, which can be energy-intensive to maintain.
- Responsible sourcing: BPO providers actively seek equipment suppliers that utilize sustainable or recycled materials in their products.
- Virtualization: Multiple operating systems run on a single server to reduce the overall number of physical servers and their energy consumption.
Responsible electronic waste (e-waste) management
E-waste generation is inevitable in any business operation, and real estate BPO providers are taking steps toward responsible management.
They partner with certified e-waste processors to ensure the safe and responsible dismantling and disposal of devices. These processors extract valuable materials to use in new products, which minimizes the need for virgin resource extraction.
They also choose partners that prioritize data security and employ rigorous data destruction techniques to keep information secure throughout the process.
4. Standardization of hybrid work models
The 2020 pandemic forced real estate businesses to implement remote arrangements. Many also adopted hybrid work models once the world adjusted to post-pandemic life. This shift’s primary drivers include:
- Access to global talent
- Employee preferences
- Technological advancements
- Cost savings
- Competitive advantage
- Client demand for agility
This trend generally creates a need for real estate administrative and technical support, which outsourcing services often provide through virtual assistants (VAs). But what is a real estate VA?
It is a remote staff member who can handle various tasks for firms, brokers, agents, and investors. Enhanced efficiency, reduced costs, and increased focus on higher-value activities are just some of the reasons to hire a real estate VA.
As the hybrid work model becomes the norm, the demand for real estate VAs and BPO services continues to rise. Deloitte’s 2021 survey reflects this trend: 12% of businesses outsourced real estate and facilities management.
The bottom line
The driving force behind real estate outsourcing goes beyond cost savings. Talent specialization, technology, sustainability, and hybrid models are also redefining the industry. Additionally, BPO providers now offer access to a global talent pool, cutting-edge tools, and eco-friendly practices.
Real estate firms can optimize these trends and position themselves for success by partnering with a reliable outsourcing company. They can maximize their efficiency, gain a competitive edge, and sustainably achieve operational excellence.
Are you considering real estate BPO services? Let’s connect and discuss the solutions this emerging practice can offer to your firm.
