With the economic recession pushing many businesses to outsource, many are faced with the exciting prospects of global outsourcing in the new world economy. Those who are already in the outsourcing world knows that there will always be new opportunities and challenges to be faced. The global marketplace is shifting towards hiring virtual teams from all over the world, cutting down on huge costs brought about by doing business the traditional route. As the year opens to a new hope, there is also a greater demand for quality and value at lower costs. This and more will be addressed at the Outsourcing World Summit to be held by the International Association of Outsourcing Professionals ( IAOP ).
FACT: Several industries in the US have permanently shifted to offshore outsourcing to fuel their businesses. No one is immune to this trend and many are jumping into the bandwagon for the sake of minimum costs with the extra benefits.
What Global Outsourcing Trends Should You Watch For?
1. Focus on Value
Unlike before when there is a huge demand for the lowest hourly rates, businesses are now more results-oriented, where value or quality matters. The rise from last year’s economic slump means stronger finances and the ability to pay for better services.
2. Flexible Deals
There is still uncertainty in the global economy and many businesses will play it safe by engaging in short-term, flexible contracts. The fear of the unknown still lingers. From the point of service providers, this uncertainty will force partnerships or teams to be created, where offers will definitely be competitive. There will be various pricing models that will meet the needs of both businesses and remote workers alike.
3. Increase in Hire
Since many small businesses will join the global outsourcing arena, many remote workers will be hired from locations outside the United States. We can see the rise of new outsourcing locations such as Central America, South America, and China.
4. New Technologies
As businesses try to bridge the gap between geographical borders and time zones, newer technologies and tools will come into play, giving better communication and computing services for both clients and service providers.
5. Paradigm Shift
With the increase in global outsourcing practices comes global corporate and social responsibility. Governments will be forced to toughen regulations in outsourcing to ensure that fair business practices are met.
6. Tougher Competition
Doing business globally opens a huge list of competitors in the market. With the emergence of new global outsourcing destinations comes tougher competitions based on services and rates. There will be an increase in professional certifications and training programs that will make any service provider more valuable than the rest.
7. Better Quality Metrics
Unlike traditional outsourcing that is based on performance metrics, there will be more transparency in the way business will be done. There will be better ways in measuring the value a business gets from offshore or outsourced teams, which will help resolve issues before and during the project work stage – and not after results are completed.
Nothing is ever constant in the world of global outsourcing and by watching out for the latest trends, you put your business a step forward, above the rest. One thing’s for sure: Competition will definitely increase. Stay Vigilant!