Changing Nuances of Outsourcing

February 19, 2009

The phenomenon of globalization, while linking inextricably the world economics, makes it imperative for the companies to rely on external resources, in addition to their own internal resources, to be able to meet their challenges. Outsourcing through working with partners and getting the most out of those relationships may be the most effective way for businesses to leverage what they are best at and compete successfully in an increasingly diverse, dynamic and competitive global marketplace. But much more is needed other than simple cost savings and contractually based service levels for outsourcing to deliver consistent results. Managing increasingly complex outsourcing relationships across multiple organizations with multiple interfaces requires dynamic network of global partners to be able to adapt to changing situations.

A global, standard setting organization and an advocate for the outsourcing profession predicts top five Outsourcing Trends for 2009. They say that the predictions are based on an analysis of more than 25 observations of global factors impacting the industry and the factors range from tighter expected controls and government oversight, to promised new initiatives by the incoming U.S. president and slower growth in developing countries.

The predictions for the coming year is expected to favour the near shore destinations or domestic service providers, demand immediate savings, pressure service providers and advisors, value professional expertise, emphasize socially responsible outsourcing and industrial volatility among other developments.

The top five predictions to watch for are:

1. Outsourcing will stay closer to home

2. Global uncertainties will create outsourcing volatility

3. Professional expertise will be valued

4. Strategic companies will prosper

5. Social responsibility and green will be outsourcing themes

Outsourcing close to home, according to the organization, has its reasons in the available labor from layoffs and the tightened risk profile of companies. The planned initiatives taken by the incoming US president and the increased government spending on infrastructure projects are also expected to lead to more domestic outsourcing.

Global uncertainty leading to seeking of shorter contracts to adjust volume and service level terms by the companies, according to the organization, is another trend which may slow down the fast-paced growth in outsourcing. The organization is of the view that this turbulent environment will see the prosper of only the seaworthy as there will no longer be a rising tide that can lift all boats.

The volatility putting a greater emphasis on immediate larger cost savings and lower risks is expected to rely more on the expertise of outsourcing professionals in their own organizations to help manage the outsourcing process, putting pressure on advisors to demonstrate a higher value proposition. This automatically goes hand in hand with the creation of opportunities for strong and well-positioned companies. The organization holds the view that companies involved in outsourcing that act strategically and decisively for the long term will be increasingly valued and sought.

Outsourcing in the year 2009 may incorporate solutions emphasizing on socially responsible business environments such as employee retention and welfare programs that are industry competitive. This trend as predicted, according to the organization, seems to base itself on the new government direction from the US president.

The predictions, it seems, are greatly influenced by the existing turbulent economic climate and the financial measures taken in furtherance of that. The coming times shall stand witness to the collaborative effort across the global community of outsourcing professionals - customers, providers, and advisors alike.

View Other Articles

Ascent in Legal Offshoring: An Overview
August 26, 2011

Advanced possibilities for retrieving Indian patent information
June 1, 2011

Dynamism in the Offshoring sector!
June 25, 2010

Extension of Offshoring services across domains
June 11, 2010

Possible impact of rising IP Awareness
June 4, 2010

Offshoring Transcription services to India: Been there, heard that, done that!
May 28, 2010

Steering client relations ahead to gain a Competitive edge
April 29, 2010

The possible need for an industry wide alliance in the Legal Offshoring Space
April 1, 2010

Determining the factors to maximize Profits
March 25, 2010

Ensuring the Escalation of Quality
March 19, 2010

Expansion in Legal Offshoring Delivery
February 4, 2010