In the early 90s, outsourcing started as a revolutionary phenomenon of propelling unskilled work from developed countries to developing countries, has adept prodigious growth over the past 10 years. Today, after more than a decade of outsourcing, the triumph of outsourcing is being catechized. Now, the question arises will outsourcing continue to flourish or be curtailed by force in the coming years? Also, will the advantages of outsourcing become overshadowed by governmental pressures and rising offshore outsourcing costs?
Industry specialists, who have been scrutinizing the pros and cons of outsourcing, perceive that the future of outsourcing will perpetuate to remain secure particularly due to several benefits that outsourcing brings both to the offshore provider and the buyer. The benefits of outsourcing are manifold- the most important being cost-effectiveness and better infrastructure and this has led to its sustained growth.
Cost Savings Will Continue To Be an Advantage
In the early years, one of the major advantages of outsourcing was the mammoth difference in cost. Organizations were able to curtail their overall outlay considerably by paying less than half the wonted amount in salaries to their offshore outsourcing partners.
Few years back several outsourcing specialists prognosticated that cost savings would no longer be the major advantage of outsourcing due to the increasing cost of living and technological advances. But the monetary woe brought on by the year 2008 to 2009 pecuniary crises has made the whole notion of cost saving even more important. With the economic recovery still unsure cost saving remains the prime reason for outsourcing to India?
Core Business Activities Will Be More Focused
Upcoming trends in outsourcing points to the vital change of focus from the outsourcing of non-core services to the core business functions. Most businesses, with a remarkable number of SMEs, consider fully outsourcing their IT department, not only to save money, but also to gain better qualified and skilled experts to generate high quality solutions.
In India, especially IT outsourcing, is on the mount due to the profusion of experienced professionals who have the methodologies, resources and skills taking to create high-grade results.
Benefits of Outsourcing Smaller Projects
The future of outsourcing will be observing rise in the outsourcing of smaller projects. Although bigger organizations will continue to outsource huge projects to prime service providers, there will be an expansion in smaller buyers, looking for pliable and specialized smaller providers to support them in realizing newer business ideas. This advantage of outsourcing will be more relevant to entrepreneurs, who spent several years observing from the sidelines and those who want to benefit from the outsourcing action.
Outsourcing of smaller projects will succor companies, specifically those looking outsourcing as a way to resurrect their businesses as the economy rebounds. Outsourcing to India will also continue to grow due to a gush in smaller IT service deals from initial buyers.
Exponentially Outsourcing and Cloud Sourcing Will Grow and Merge
Industry specialists who have been noticing the advantages of outsourcing and cloud sourcing prognosticating that cloud sourcing will shortly merge with the existing outsourcing market and give better opportunities for the whole outsourcing industry. In general, businesses are pushing towards cloud solutions for various reasons like, scalability, pliability and cost savings, outsourced IT services will necessitate for exodus of existing infrastructure and services for making them cloud enabled.
This prime advantage of outsourcing will be convenient for infrastructures supported by cloud resources as well as other small outsourcing providers.
Furthermore, outsourcing is awaited to increase drastically in the coming years. It is just because globalization which inevitably links the world’s economies leaving no room for individualism. Organizations will not be able to meet several challenges; they come-up with relying independently on their own internal resources but will have to look further for more cost-competitive and reliable sources. And this is where outsourcing and various profits it brings with plays an extremely valuable role.