Seventhman Blog

The Future of Outsourcing: Rising Trends and Predictions

"outsourcing trends"Last year’s outsourcing scene has been marked with plenty of talks on cloud computing and many have been debating on how sustainable it is for businesses to take a plunge into outsourcing these days, especially when negative sentiments about it is on the rise.  There are speculations on how emerging technologies will help bring outsourcing to the next level, making it possible for people to collaborate easier – anytime, anywhere.  The new year brings a mixed feeling of hope and gloom when it comes to the trends that will shape the outsourcing world from what we know today.

The Dirty Li’l Secret.. Remains Untold

When offshore outsourcing has been blamed to contribute to unemployment in the U.S., it only makes sense for large businesses to declare that they are creating more work at home… or do they, really?  Perhaps, lack of transparency has compelled the move for rallying this anti-outsourcing bill that will seek to punish those who are moving business offshore.  It only makes sense, as a protectionist act that any country will be compelled to do when the economy is down.  By offering local government incentives, this may drive companies to look for talents on shore – from crowdsourcing, rural sourcing, insourcing to near sourcing.

When Opportunity Lost Means Opportunity Gained

As outsourcing deals get smaller, we can see new price models that are tailor-made to fit every client’s budget and needs, no matter how small their enterprise really is.  Last year, IAOP (International Association of Outsourcing Professionals) predicted that we will see a surge of BRIC countries – Brazil, Russia, India and China, as major outsourcing hubs.  There will be more room for innovation and outsourcing to work hand-in-hand when it comes to technologies, collaboration and strategy – for coming up with value-added services in a higher demand, more than ever.  A stronger emphasis will be set on various social media platforms in the hunt for global talent and we will expect to see a rise in job matching/freelance portals on the Web.

Outsourcing: Embracing the Risk

It may be too late to bring back jobs on shore and there are still many who are taking the risk to outsource some or most functions of their businesses, offshore.  And to outsourcing vendors, they may just have to take on the risk of signing for several smaller contracts than going for a large deal.  You may not like to hear it, but lower labor cost is always the top driver for companies to consider offshore outsourcing.  You may put a lid on top of this running water, but it won’t hold businesses off from outsourcing, though you can slow down the process.  In the end, one has to ask:  Is outsourcing the cause.. or the effect of a much bigger problem out there?

Will 2012 be the end of offshore outsourcing?  How about 10, 20, 30… 50 years from now?  You may have to see the world in a bigger picture – climate changes, world population, global economy, inflation, technology shift and so on.. It’s really too soon to tell..

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  • http://www.tatvasoft.com/offshore-software-development.asp David Petty

    It’s quite hard to say that whether there will be end to offshore outsourcing or not. Yet U.S. is trying to put restriction to it so that they can gain their jobs back but in future it might be possible that they can move towards it. 

    • seventhman

       Thanks David – the future seems uncertain, no doubt.. especially when new technologies create new demand and with it comes new problems that will fuel a new workplace unlike we have ever seen before.

  • http://primeoutsourcing.com/ PrimeOutsourcing

    Companies choose to outsource because it reduce the their costs. Not only that, it also reduce your time and effort. If quality is the issue, examining the company through their credentials and portfolios is enough to prove it, but then it still depends on your preference.

    Thank for sharing Shaleen. This is worth knowing. :)
    -Rachel 

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