Monday, June 6, 2011     17:19

Outsourcing Trends

Outsourcing Trends 2013

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During the last few years, outsourcing has become vital considering the world economic situation. It has created animportant competitive advantage for various businesses. However companies now are searching not only for competitive prices, but also for quality, better location and similar cultural background. Every new year brings more economic, political and environmental challenges, which managers should consider.

According to the Sixth Annual Trend Predictions created through the International Association of Outsourcing Professionals (IAOP), there are a few important outsourcing trends for 2013. Next year’s challenges will be related to risk handling, social responsibility, technological improvements and online security. Government regulations will continue to be enforced and companies will need to adapt and find better ways to handle legal and financial risk. The communication about possible partnerships will grow into real partnerships. However, the contracts between partners will become shorter than usual – from 7-8 years to 3-5 years. In terms of technology, cloud-computing services are expected to grow and to become vital for the outsourcing opportunities. Along with them data security, as well as availability of systems and networks will remain a major issue for customers and suppliers.


Main models of P2P Offshoring
     Direct Interaction:
Under this model a vendor directly interacts with a client. Parties conclude a contract. Since the cost of individual projects is fairly low, clients usually pay the vendors with credit cards which can help offset some of this risk.

Online Marketplace Model:

    This model involves the mediation of the online marketplaces (freelance-sites).
    Green IT:

    Global companies start taking concern of their impact on environment increasingly. This fact makes them change their demands to their suppliers. This is the reason why lots of outsourcing engagements now include the paragraph as to the environmental protection. Environmental concern is becoming one of the evaluation criteria for service providers. Environmentalism in terms of Green IT becomes a trend and gets shapes of the industry.
According to the Brown-Wilson Group's (an outsourcing industry consulting firm) study, more than 21 percent of US and European countries that outsource have added green policies to their outsourcing agreements. However, the real impact on the outsourcing industry will be seen after implementation of the 'green' legislation by governments of European countries.

Virtual Worlds

Recently the popularity of virtual worlds such as Second Life has grown significantly. These worlds allow people build virtual offices, attend virtual meetings and get real deals. Though the market of outsourced virtual world services is rather young, but it gathers pace.

Service-oriented architecture

Service-oriented architecture (SOA) enables the customers to take one piece (or several pieces) from the process they wish to outsource and render to a provider (just like in Lego where one cube can be taken away from the whole structure and replaced by another one). Service-oriented architecture helps to concentrate on one piece of a process, thus enabling to provide more detailed specialization for outsourcing vendors.

Convergence of technology and business

According to this model clients refrain from outsourcing their business processes in parts (in isolated pockets) to different companies. According to this, the higher demand will be for providers that can deliver all aspects of outsourced processes in one package.

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