Outsourcing has certainly revolutionized how businesses are run today. Before jumping ahead to the latest trends in out-sourcing, let’s have a quick recap about out-sourcing and its origin. When outsourcing first started, it mostly comprised of low risk jobs like data entry and payroll processing. Now out-sourcing had become a necessity for all businesses who want to focus on in devoting 100% to their key business operations and out-sourcing the rest including major high end functions like IT, marketing and research services.
The biggest contenders in the out-sourcing world currently are China, India, Philippines, Latin America and Europe; with India as the lead contender especially for IT and ITES outsourcing services. This however, might change in the upcoming years as out-sourcing is predicted to follow these listed trends in the near future by experts:
Latin, America and Europe might prove to me major competitors for India in the upcoming years.
Outsourcing relationships are now more comprehensive; driven more by people or processes rather than on the basis of price.
Cost pressures will make way for custom outsourcing contracts, meaning they will be flexible in their Service Level Agreements.
Small businesses, startups, and SOHOs are more likely to be inclined towards outsourcing so they can operate more effectively on their core functions while eliminating any operational inefficiency.
Rising raw material, transportation, and oil costs will have a major impact on companies, forcing them to consider outsourcing in order to keep their operating costs low.
More high-end crucial business functions will be outsourced in the next decade, bringing a new set of challenges in terms of company security.
Outsourcing of low-end services will become stable.
India will experience an outsourcing boom as many pharmaceutical and manufacturing companies will shift focus to India to cut labor and manufacturing cost.
Research outsourcing will also tap into the immense outsourcing potential of countries like India and Latin America.
The bigger question that now remains is that will out sourcing stand the test of time and the answer is defiant yes. Not only will out-sourcing survive it will also continue to grow and explore more options along the way. Constantly self-innovating and adapting to the upcoming challenges in business strategies globally.