Offshore Outsourcing 10 Trends For 2010

Offshore Outsourcing 10 Trends For 2010

By:


The IT industry has witnessed a tumultuous year in 2009. as consolidation and mergers between vendors increased, the demand for overall outsourcing services declined along with regular IT pricing. But as experts predict, 2010 will be a much more favorable year for the offshore outsourcing industry

Here are 10 trends that the IT Services industry will witness in the Year 2010.

Optimization of Services
Even though the demand has declined, outsourcing customers would still want the services of IT services providers. And this is why the service providers would seek to optimize their services i.e. the way they deliver back office services and they would increasingly focus on achieving the best in class, standardized and optimized delivery models.

Renegotiations
The offshore outsourcing industry will witness an increased number of contracts being renegotiated and rebid in the coming times. If the outsourcing companies are not able to achieve favorable deals the first time, they will vouch for it again. Even though companies would seek to avoid the costs of new capital and migrating to new service providers, they would not shy away from making investments to ensure that the service providers and internal processes are delivering optimum value.

Multi-Sourcing
Multi-sourcing is the practice of hiring multiple outsourcing service providers for a single project or various processes of a single business. Because of the competition among service providers, it keeps the costs in check and makes the situation profitable for the client. The coming year will see organizations display enhanced maturity in terms of processes, governance and vendor management so as to extract maximum benefits from the multi-sourcing arrangement. There would also be increased cases of re-evaluation and restructuring of these relationships in the coming year.

More Mergers
Because a lot of top notch service providers shut shop this year, it has created a lot of challenges as well as opportunities for other service providers. Therefore, year 2010 will see a lot of consolidations and mergers. And the consolidations will focus on adjacent and complementary capabilities across functions, verticals and geographies.

No More Mega-Deals
Because of the increased near-term cost pressures, the coming year will see a decline in the number of mega-deals. The outsourcing contracts will be more focused on core processes with shorter, less expensive transition periods and reduced return on investment timescales.

Local & State Governments
There will be increased outsourcing in the local and state governments. This is because the budgets are tight and at the same time businesses require stronger and more advanced technologies. Providers who deliver application development, and maintenance and consulting services will formulate innovative contract and pricing structures to win customers as the market rebounds next year.

Semi-Sourcing
This is a combination of cloud computing and software-as-a-service (semi-outsourcing alternatives) which will supposedly make waves in the IT services industry in the year ahead. Traditional models will come to a decline and more new utilities like cloud service offerings will become more popular.

It is expected that 2010 will be an year where small and mid size companies lead the fray where as large companies will wait for fuller recovery before adopting the new trends.

About the Author:
Maneet Puri is the managing director of LeXolution IT Services, a professional IT services company based in India. He has been in the KPO services industry for over 10 years and caters to his clients with effective internet research and virtual assistance services.



Article Originally Published On: http://www.articlesnatch.com


Tags: , ,

|

Loading...
Related....
Videos...

Recent Outsourcing Articles

Comments

Still can't find what you are looking for? Search for it!

Loading

Site Navigation:

Copyright 2005-2011 ArticleSnatch, LLC - All Rights Reserved.
Privacy Policy | Terms of Service.