Outsourcing Industry: Factors of Growth

Following up on my earlier blog highlighting challenges for outsourcing industry however the industry is showing lots of resilience and as a whole it will bounce back from the lows to period of double digit growth again.

There are few factors which make the industry growth in future very much possible:

Business Expertise: Organizations has gained lot of expertise in handling outsourced work since it started in last decade. Now organizations have matured in handling the business process of identifying opportunities to reduce waste and streamlining the process in an efficient way. In short they have moved from being the fresher in the business and doing the work assigned to them to subject matter expert and now doing not only the work assigned to them but also with their past experience telling clients how to do business more efficiently. Now they have set examples of managing outsourced work. It’s a remarkable achievements and this opens the door of bigger and better future for the industry.

Globalization is still on: The Recession has been very severe but still globalization is the buzz world and if I say it is the key to make your company stronger in recession. Organizations with excellent global delivery model in outsourcing are still the easiest way for organizations to outsource. Outsourcing though doesn’t cover the complete globalization but still provide an excellent start for the companies willing to go global and is also cheaper and now more reliable way for companies to achieve their global expansion plans.

Technology and Skills: It is ironical that outsourcing companies like Wipro and Infosys are now developing technologies that can challenge the best in the business to collaborate or compete directly. Recent example is Wipro tie up with Oracle with which Wipro will deliver PeopleSoft HR to various client bases using Wipro BPO model.

Pressure from Competition to reduce operating costs: Outsourcing saves money is still true and if your competition is saving money more then you then you have to find ways to reduce yours. Finding the right outsourcing partner, finding the right outsourcing process and doing it at the right time are the three keys. Outsourcing decisions can still provide lots of cost down and bring in better process control if done correctly.

In all Outsourcing is still a concept very much viable and Outsourcing organizations are becoming smarter and efficient and are now offering better quality, process, technology and cost optimization. So future of the industry looks secure and growing.