The changes stemming from the global financial turmoil spurred by the subprime/housing market crisis has raised some new questions for outsourcing and its benefits.
A couple of years ago, outsourcing was the fashionable thing to do for corporations and it meant cost reductions of approximately 30 percent. However, the recession has change all that and brought about a new perspective for outsourcing. It is no longer about cost savings as it is about the potential that lies hidden in the process of outsourcing â€“ the diversified talent pool, collaborations on projects and new ways to look at corporate vision. Ideally, companies are concluding that improving business operations are more under their control with outsourcing than previously thought.
Whether the vote is for or against outsourcing, analysts say that going forward outsourcing is here to stay. In a sense, it has weathered the recession gracefully, and corporations are looking at how outsourcing can be used to bring about innovation in 2010.
Going forward in 2010, companies have inked new deals and several firms have a new management in place â€“ so just about everything related to the business arena is focused on return on investment (ROI). Customers are requesting for faster results and this is likely to influence the future of outsourcing contracts. Companies are now tuned to a complete offering rather than the previously held shortsighted view of cost savings.
Major players in the BPO and IT industries are realizing that a complete â€˜right sourcingâ€™ offering is of great value to a client. For instance, HP has acquired EDS, Xerox â€“ ACS, Dell â€“ Perot Systems, and Xchanging bought PLC. This goes to show that outsourcing is not local presence, but offering customers a full range of options. The aforementioned deals reflect not just a European presence but also a global presence by offering onshore, nearshore, and offshore options to their clients.
Despite the fact that India is still a hotbed for outsourcing as it was ten years ago, companies are looking at more available options than offshoring now. Post recession there is a choice to the question, â€œWhat is the best option for company requirement?â€ In reality, the outsourcing landscape has bloomed in Eastern Europe and other parts of Asia like Vietnam, for example.
For companies looking for closer supervision, Brazil offers a huge proximity in its proximity to the U.S. Apart from that, the country is exceptionally advanced technologically and has welcomed the digital age with confidence as a leader in the Latin American context. It is expected that these emerging geographies will take some of the market share away from traditional sourcing sites like India. Atul Vashistha, Chairman Neo Advisory & Neo Group notes, â€œOffshore players will continue to expand and set up operations in new geographies, taking a share of an expanded pie,â€™ reports outsourcing-russia.com.
â€œIncreased competition from emerging market providers will also drive a focus on services differentiation, bundling of services and greater intimacy with customers through outsourcing relationship management (ORM),â€™ Matt Shocklee, president and CEO of Global Sourcing Optimization Services said in an online report by eucommerz.