New Trends in Outsourcing

The start of the year 2015 brought a myriad of opportunities in the IT outsourcing industry with the sudden increase in hybrid off-shoring, the major shift in focus on in-house service integration and the creation of low-cost consulting model, smaller deals and the rise of the requirement for bigger governance.
Today, with these developments surfacing as the top business trends of the year, it is an impertinent question as to what it is leading up to.  It is perhaps also important to know, why outsourcing to SMEs and Start Ups is a good idea. With India positioning itself safely as a major outsourcing hub, it is essential that we identify the determining trends of the outsourcing for the year.
The outsourcing industry sees itself rising following the global recession period. This aftermath has resulted in the rise of the following trends in the industry—

  • Latin America and Europe will emerge as the new outsourcing destination
  • Brazil and Russia will make their presence felt in the global outsourcing arena ad they continue to forge ahead with dynamic economies
  • The pricing structure is expected to stabilise as buyers seek a substantially standardized solutions for outsourcing engagements.
  • Sellers will be prompted to discern themselves through performance than pricing
  • The industry is also expected to continue to fight short-term cost pressures
  • There will also be pressure on service providers to offer flexible pricing contracts
  • With shared and common services rising as a threat to outsourcing—sharing important business services may be seen as a beneficial trend to cut costs, reduce errors and improve productivity.
  • To take advantage of technology and outsourcing when the price of the oil is on the rise
  • Technology that are consumer-based cloud driven will grow to be cost effective
  • As the I.T. industry is expanding exponentially, increased operational efficiencies, increased quality control and reduced back office costs will continue to be a trending interest

India continues to be a major outsourcing hub even in 2015
This is mainly due to its ability to adapt to the changing needs of the market. India continues to stands reputed for its customer services and efficiencies. However, the demand from outsourced companies is not merely customer services any more—it is also skilled staff, enhanced productivity and business process excellence.
The growth in the outsourcing industry has been phenomenal. Markets in 2015 continue to grow to be knowledge driven. This yet again makes India a very favourable destination for outsourcing and our organisational systems are driven intensively by knowledge.
Challenges in the Industry

  • The industry is growing rapidly and requires corresponding growth in infrastructure as well
  • The cost of labour in the industry must be monitored
  • Rising competition from other south-eastern countries will emerge for they will offer better market value as opposed to the already over exposed Indian markets

To identify the most effective trend of outsourcing of 2015 is as such— Enterprises will continue to rely on better data and cost transparency to understand optimisation of opportunities and will require better integration of their management processes to integrate multiple cloud providers and service providers.
It therefore is important that SMEs align their growth charts for 2016 keeping in mind some crucial trends from 2015.

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