Insights Success The 10 Most Valuable Outsourcing Companies 2016

Futurista
Future
Outsourcing
Trends
06
ecently, a lot of businesses
Ropportunities 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 highend
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 nonprofitable
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, highend
critical business functions will be
outsourced while low-end services will
be stabilized.
JULY 2016 |