Recently, a lot of businesses opportunities have been brought up through outsourcing for various countries. Over the years, India has created a niche for itself in IT and ITES outsourcing. Perhaps, India is the biggest beneficiary of the outsourcing boom. When it comes to outsourcing, a large majority of IT companies prefer to choose India due to the presence of multi-talented pool of reliability, affordable resources, and timeliness.
A Brief Recap of How Outsourcing Started
Today, outsourcing has definitely revolutionized how industries operate. When it first started, it was confined to low-risk functions like data entry and payroll processing. Later on a large scale, customer service operations were outsourced.
This led outsourcing cost benefits spearheaded and organizations have started taking notice of it. Global companies started outsourcing high-end functions like healthcare BPO, IT services, and research services to reliable companies who previously wanted to leverage the cost benefits of outsourcing. Nowadays outsourcing is no longer seems to be a new word only for the low cost labor rather it has become a key business strategy for both small and large business enterprises.
Debate – To Outsource or Not
While most organizations across the industry verticals vow by the pros of outsourcing, the outsourcing debate continues over its long-term sustainability. Many opponents of outsourcing argue that the flip side of outsourcing lacks quality control as well as hold on the project management, and also it lowers the innovation prospects. Many outsourcing critics point out that rise in salary, outsourcing destinations like India, is taking the shine away from outsourcing and thus making it non-profitable in the long run.
Despite perceiving such negative aspects, still outsourcing has only continued to grow. In fact, it is now being embraced by companies of all sizes and domains. From large enterprises to startups, outsourcing has become a tool of choice for gaining competitive advantage in the business framework. Although businesses are moving towards multiple platforms like social, mobile, cloud etc., stakeholders are getting distributed geographically; in such a contrasting environment, outsourcing has been able to appropriately adjust with the rapidly changing business environments.
Till now only crux business situations have helped to build the case for outsourcing further. Testimony to the fact that businesses not only need to learn how to survive during a downturn is due to the recent global economic crisis, but also there is a need to look at newer ways of overcoming weak economic conditions. The current business scenario is all about “outsource and survive”, and systematically managing your projects of outsourcing and always staying ahead in the competition.
Foreseeing the Future Trends of Outsourcing
As outsourcing provides companies the access to specialized skills and saves on effort and time, outsourcing will continue to survive in the future and can be channeled into the other core business ventures. Relationships of outsourcing are now more standardized, and it is process and people driven rather than price driven. Cost pressures will pave the way for custom outsourcing contracts. A higher adoption of outsourcing will be witnessed by small businesses and startups in order to increase their time to market and reduce the operational inefficiencies. Also, R&D outsourcing in these industries will also tap into the wider outsourcing potential of India. Additionally, in the next decade, high-end critical business functions will be outsourced while low-end services will be stabilized.