Outsourcing, which begun in the
early 90's, is considered a revolutionary phenomenon of sending work from a
developed country to a developing one. It has experienced remarkable growth in
the past decade. These days, after over ten years, its success is being
questioned. Will its advantages overshadowed by rising offshore costs and
government pressures? The experts in the industry feel that the outsourcing
future would remain securely mainly because of the numerous benefits that it
brings to both the buyer and the service provider. The benefits are manifold,
the most important the cost savings and better infrastructure. These lead to
the sustained growth of the process.
Thorough consideration and careful
assessment of the different offshore sourcing trends revealed that the process
would grow continuously because of several reasons, which include the
following:
IT WOULD HAVE MORE FOCUS ON CORE
BUSINESS TASKS
The current trends point to the
major change of focus from the transferring of non-critical services to
transferring core functions. Most organizations, with a considerable number of
SMEs, are taking into consideration fully sourcing their information technology
department, not just to save money but most of all to gain better skilled and
experienced specialists for creating high quality solutions. Moving tasks to
India, particularly information technology is growing because of the abundance
of qualified professionals in the country with skills, methodologies and
resources to make superior results.
STANDARDIZED SOLUTIONS WOULD BE
FAVORED COMPARED TO CUSTOMIZATION
Another trend that would affect the
future of the industry is the move to standardization of solutions. The recent
economic crisis has led to enterprises favoring standardized answers over
custom ones which are more costly. Organizations prefer using the dollars they
saved for acquiring new clients and to think out new concepts. This led to
companies sourcing to other locations more than willing to move a standardized
method of working for non-core tasks. With the great pressure of keeping costs
down, vendors would rely more heavily also on mass automation tools that would
create further opportunities and minimize the staff necessary for supporting
critical applications.
SAVINGS ON MONEY WOULD CONTINUE AS A
MAJOR ADVANTAGE
In the early years, one of the key
benefits of outsourcing was the huge difference in cost. Businesses were able
to reduce their overall expenses significantly by paying less than half of the
amount in salaries to their offshore partners. During the late 90's, most
experts predicted that cost on savings will no longer be one of the main
advantages because of the rising cost of living as well as advancements in
technology. However, the financial woes during the years 2008 and 2009 have
made the entire concept even more important. With the recovery still uncertain,
the cutting on costs remains one of the main reasons to outsource.
OUTSOURCING AND CLOUD WOULD MERGE
AND GROW
Industry experts predict that cloud
would soon merge with the current market and provide better opportunities for
the whole field. With business in general pushing towards cloud solutions for
various reasons such as scalability, flexibility and savings, outsourced IT
offerings would be needed for migration of current services and infrastructure
in order to make the cloud enabled. This would benefit infrastructures
supported by the computing system as well as other providers.
SMALLER PROJECTS SOURCING WILL
REMAIN AN IMPORTANT BENEFIT
The future would witness a boost in
the transferring of smaller projects. Even though big corporate homes will
still outsource large projects to major vendors, there would be a boost in
smaller buyers or customers who would be looking for specialized and flexible
smaller providers to support them in realizing new concepts. The benefit of the
process would be even more applicable to individuals and entrepreneurs who have
spent years watching from the sidelines and now want to benefit from a piece of
the action. The transfer of smaller tasks would help companies, particularly
those who are looking towards the process as a way of reviving their businesses
as the economy makes a rebound.
In general, the practice is expected
to dramatically increase in the future. This is due to globalization, which
links the economies of the world, which leaves no room for individualism.
Enterprises would not be able to meet the different challenges that they face
solely rely on their own internal resources but would have to see beyond for
more cost-efficient and capable sources. This is where the industry and the
numerous advantages that it brings play a very crucial role.
More than a decade has passed and
numerous newly raised enterprises have also gained a lot of fame, name and
revenue with the system. It is a system to grow itself and to develop others as
well. At present, businesses prefer it as the technicality involved a lot of
time and capital investment too. Several issues are before the entrepreneurs
such as automating data, transportation, security management, account
maintenance, labor, raw material, access control, marketing, telecommunications
and accommodation among others. All of these involve more than sixty percent of
the capital investment. In order to make more savings, every business owner opts
for transferring the jobs.
Vendors are thoroughly equipped with
different services as well as having expertise to provide it in the shortest
possible time. The reputation of a lot of BPOs is more than the industries.
Gone are the days when the BPOs were used only as call centers. These days,
they man an industry that is fully capable of handling and running another
field. Not just the field, but a lot of firms like government agencies, banks,
business houses, huge firms, sports sector, educational institutions,
transportation, electricity, water, agricultural and a whole lot more of
sectors are the work area for the BPOs. If they do not outsource, they could
not run at their own caliber.
Regardless of offshoring or in a
domestic setting, the nature is the same and the reduction on operational
expenses is the same. Every entrepreneur would prefer a lower investment and
availing of the rest of the services from the vendors since the same are
available on a professional basis. The method also provides ample time for
managing the major aspects of the business and so it is clear that the future
is bright and would definitely continue for many years.
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