If you outsourced a certain business processes in the past or plan to do so in the future, you might be interested in what the future has in stored for outsourcing. On the other hand, the things we will talk about today can also be relevant to those people who plan on offering outsourcing services to other individuals or business organizations.
So, if you are wondering what will happen to outsourcing in the future, you should have no fear. Outsourcing is here to stay and chances are that it will probably continue to grow and evolve in the future. This is actually the main topic that we will discuss today – where outsourcing will be going in the next year and what you can expect to happen to the market.
Additionally, you should have the knowledge about what the standards will be next year, and how to follow all the trends relevant to outsourcing.
- Business process management becomes the new main thing
Even now, you can see that business process management is becoming quite important and that a lot of businesses require outsourcing services of this type. In the future, it’s expected that that BPM (business process management) will completely outrun BPO (business process outsourcing) as most partners in this business model are starting to think of their partnership as a union in which they share common interests, instead of being just buyers and vendors.
In 2017, you can expect that business outsourcing will no longer be a symbol for business process outsourcing used for cutting costs and hiring labor. Instead, it will be all about partnering up with another business in order to make use of their field of expertise, analytics and specialized technology.
One of the biggest factors due to which outsourcing is going this way is because outsourced companies were able to perfect their services to the point when they have become an indispensable asset. They also created capital and no longer need to take make low paid partnerships.
2. New outsourcing markets on the rise
Since it’s begging, the outsourcing industry was very vivid and everyone who wanted to get in on it and do some business had equal chances as everybody else. This hasn’t changed and this is why there are constant new players on the market, bringing innovations and changes that make the game look a bit different. For example, nearshoring is becoming an interesting outsourcing model to a lot of people.
There are a couple of new locations in the world that will have a big impact in 2017. Those new outsourcing locations include Russia, as they have been able to develop a large freelancing industry in the past couple of years. Another country which is similar to Russia is Brazil, from which people can look for partners in Portugal, given the fact that they speak the same language.
Another country that is slowly becoming relevant to the outsourcing industry is Guatemala. This country has great potential for outsourcing as its citizens speak two of the most used languages in United States, English and Spanish.
3. Performance-centered approach
In the past, buyers and vendors used to sign fixed contracts for a longer period of time. These contracts were rock solid and all the prices were fixed and unchangeable. However, there are less and less fixed contracts and more partnerships are created with changeable contracts which are performance-based, meaning that they are flexible and they can change depending on how well the partnership is working.
Like I’ve mentioned before, companies are looking to outsource partners which are experts in their fields and they want their contribution to be significant when it comes to development. With these performance driven contracts, these partnerships motivate both sides to put all of their efforts in and do the best they can in order to get as much profit as possible.
If you are wondering whether outsourcing will be able to survive in the next couple of years, my definite answer to you is yes. Those highly skilled outsourced companies will earn even more money while there will be room for those less developed ones to get the slice of the cake.
Given the fact that there are large countries investing in computer education and infrastructure, we can only expect that the IT sector will continue to grow even further in 2017. No matter if you want to outsource some business or start a company for the purpose of outsourcing, there will be a lot of opportunities for achieving success in the future.
Courtsey: Catherine Park catherinejpark at zoho.com