The Future Trends in Outsourcing
Change is constant and the outsourcing market has seen its own share of changes in the past few years. The future of outsourcing depends on the extent of how firmly rooted these changes will be, in the outsourcing market. Silicon.com has identified five trends to be on the watch out for.
Consolidation of Major Business Houses
The past year has seen numerous rumors of various mergers being spread around. The rumor that Infosys Technologies and Capgemini Group were discussing a merger has led others to believe that major alignments are on the increase. Managing director of the business advisory company TPI, Duncan Aitchison, has reportedly told Silicon.com, that even if the above merger does not take place, it reflects the current ”market sentiment.” With the competition for outsourcing companies at an all time high, this is a trend that has definitely come to stay.
Globalization of the Outsourcing Market
The talk of India losing its outsourcing market to China has long been predicted. A study by analyst IDC has revealed that China will overtake India as the top outsourcing destination by 2011. This reminds us that not only will the BRIC (Brazil, Russia, India and China) bloc of countries remain as major players, but various other developing nations such as Mexico, Egypt and Poland will start dominating the offshore-outsourcing market. As TPI’s Duncan Aitchison puts it, a “greater pattern of diversity “, is soon to emerge.
Increase in P2P Offshoring
Redeployment (the relocation of a back-office function or a whole department) which has so far been associated only with large businesses has now reached small businesses and even homes, says Evaluserve, a research company. This is because of the increase in online tutoring, writing and translation services and web and software development. Since most of the customers for these services are small businesses or even individuals, they are being termed as “person-to-person”, or P2P offshoring. According to Evaluserve, P2P offshoring, has suddenly shot up to more than $250 million between April 2006 and March 2007. Evaluserve also predicts that the P2P market will rise to around $2 billion by 2007. This re-emergence of offshoring is one of the future trends to watch out for.
Turning Towards Green Sourcing
A recent poll conducted on Silicon.com’s CIO Jury (a pool of chief information officers and other corporate IT professionals) has revealed a strong adherence towards environmental factors and ecology issues playing an important role in the selection of offshoring partners and technology suppliers. With a constant rise in energy prices, a shift towards Green sourcing is a trend that is catching on.
Rise of Virtual Worlds
The concept of Virtual Worlds becoming business friendly like the Internet is still very new and is yet to catch on. Meanwhile virtual offices and virtual “meeters and greeters”, are constantly being developed and tested by companies in the outsourcing market. News of a partnership between Entropia Universe, a virtual world with a science fiction theme and a Chinese online-entertainment company has created a virtual economy that could provide up to 10,000 jobs. This trend predicts a fusion between help desk and call center services and virtual worlds, where customers can be both informed and entertained.
These five trends reflect the current market scenario and are to be monitored in order to determine the future of outsourcing.
Consolidation of Major Business Houses
The past year has seen numerous rumors of various mergers being spread around. The rumor that Infosys Technologies and Capgemini Group were discussing a merger has led others to believe that major alignments are on the increase. Managing director of the business advisory company TPI, Duncan Aitchison, has reportedly told Silicon.com, that even if the above merger does not take place, it reflects the current ”market sentiment.” With the competition for outsourcing companies at an all time high, this is a trend that has definitely come to stay.
Globalization of the Outsourcing Market
The talk of India losing its outsourcing market to China has long been predicted. A study by analyst IDC has revealed that China will overtake India as the top outsourcing destination by 2011. This reminds us that not only will the BRIC (Brazil, Russia, India and China) bloc of countries remain as major players, but various other developing nations such as Mexico, Egypt and Poland will start dominating the offshore-outsourcing market. As TPI’s Duncan Aitchison puts it, a “greater pattern of diversity “, is soon to emerge.
Increase in P2P Offshoring
Redeployment (the relocation of a back-office function or a whole department) which has so far been associated only with large businesses has now reached small businesses and even homes, says Evaluserve, a research company. This is because of the increase in online tutoring, writing and translation services and web and software development. Since most of the customers for these services are small businesses or even individuals, they are being termed as “person-to-person”, or P2P offshoring. According to Evaluserve, P2P offshoring, has suddenly shot up to more than $250 million between April 2006 and March 2007. Evaluserve also predicts that the P2P market will rise to around $2 billion by 2007. This re-emergence of offshoring is one of the future trends to watch out for.
Turning Towards Green Sourcing
A recent poll conducted on Silicon.com’s CIO Jury (a pool of chief information officers and other corporate IT professionals) has revealed a strong adherence towards environmental factors and ecology issues playing an important role in the selection of offshoring partners and technology suppliers. With a constant rise in energy prices, a shift towards Green sourcing is a trend that is catching on.
Rise of Virtual Worlds
The concept of Virtual Worlds becoming business friendly like the Internet is still very new and is yet to catch on. Meanwhile virtual offices and virtual “meeters and greeters”, are constantly being developed and tested by companies in the outsourcing market. News of a partnership between Entropia Universe, a virtual world with a science fiction theme and a Chinese online-entertainment company has created a virtual economy that could provide up to 10,000 jobs. This trend predicts a fusion between help desk and call center services and virtual worlds, where customers can be both informed and entertained.
These five trends reflect the current market scenario and are to be monitored in order to determine the future of outsourcing.
posted by Outsource2india @ 10/23/2008 01:40:00 PM
1 Comments:
At Thursday, October 30, 2008 10:06:00 PM ,
sunil said...
Cry for India. Whom are Indians rely on for the new economy? Millions of so called technical professionals? How many of them know proper English? As per NASSCOM, 85% of the Indian professionals are not employable due to lack of English and other soft skills!!! But 95% of them speak chappathi English and think their English is good! Companies like Espoir Technologies trying to improve the situaion with their innovative products like "smarten Your English though Cricket", 'Smarten Your English through Movies" etc. I won't be afraid if India loses cost advantage soon and the entire economy fly to China or Vietnam or Philipines.
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