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Outsourcing Trends to Watch Out For


Even in the face of the economic slowdown, the demand for BPO services and outsourcing continues to grow and evolve, though there is a visible shift in direction and emphasis. According to the KPMG Sourcing Advisory 2012 Global Legal Pulse Survey, the demand for new outsourcing deals is up by 45 per cent. Business process outsourcing trends to watch out for:

  • Clients in mature economies are seeking, more than ever, to reduce cost and minimize investment.
  • The nature of the work that is being outsourced is becoming more complex with more specialized and information-intensive processes taking front stage. As a result, clients are looking for additional value, innovation and process improvement, rather than just reducing cost.
  • The use of the cloud is growing, though big buyers are moving slowly because of the security and data privacy issues involved.
  • According to the KPMG 2012 survey, buyers face the challenge of managing and governing larger and more diverse portfolios of outsourcing efforts and service providers. This is giving rise to the “system integrator (SI) role, a set of capabilities to bring service providers and clients together in a better way.
  • Political pressure in the U.S. will lead BPO companies to offer more onshore options, with focus on new lower cost locations where possible. Multi-shoring is happening as with Genpact that recently set up an operations center in Texas. As Scott McConnell, senior vice president, Americas for Genpact says, “Since our operations are standardized across the globe, we can efficiently manage the interface between onshore, nearshore and offshore.”
  • As demand for more sophisticated benefits through outsourcing grows, the complexity in contracting for outsourced services is also growing. Clients are seeking shorter contracts involving lower payback as well as more contractual flexibility.

Keeping track of outsourcing trends, responsible BPO companies streamline their operations to meet changing client requirements. The key to success lies in forging the best deal that will keep both vendor and client happy.

About Rajeev R

Rajeev R

Manages the day-to-day operations of MOS from NY. With an interest in information technology, Rajeev has guided MOS to extensive use of digital technology and the internet that benefits MOS as well as MOS clients.