Companies will outsource operations closerto home, demand immediate savings, pressure service providers and advisors,value professional certification and local expertise, and emphasize socialresponsibility in 2009, predicts the International Association ofOutsourcing Professionals (IAOP)(TM).
Domestic service providers and near-shore destinations could be the bigwinners as the outsourcing industry goes through turbulent times in thecoming year according to IAOP, the global standard-setting organization andadvocate for the outsourcing profession.
IAOP thought leaders based predictions on an analysis of more than 25factors expected to impact the industry, including tighter controls andgovernment oversight, new initiatives by the incoming U.S. president, andslower growth in developing countries.
Among the top five predictions from IAOP are:
1. Outsourcing will stay closer to home
With available labor from layoffs in many industries and tightened riskprofiles of companies, especially in the financial services industry,companies won't have to go far offshore to find talent.
Planned initiatives by Barack Obama and increased government spending oninfrastructure projects could lead to more domestic outsourcing,particularly for construction, real estate and technology, IAOP predicts.
Outsourcing destinations such as India and China will be challenged by thecloser-to-home locations. Providers in these countries also will focus moreon their domestic operations.
2. Global uncertainties will create outsourcing volatility
Overall, the fast-paced growth in outsourcing will slow in 2009, ascompanies lower their spending on information technology, consolidate orexit markets, and find skilled labor locally from layoffs in financialservices and other industries.
"In many ways, it will be the best of times and the worst of times," saidIAOP Chairman Michael Corbett. "In this turbulent environment, it will nolonger be a rising tide that can lift all boats. Only the truly seaworthywill prosper."
Global uncertainty and customers' desire for immediate and guaranteed costsavings will lead companies to seek shorter outsourcing contracts with theability to adjust volume and service level terms.
IAOP board member Atul Vashistha, chairman of neoIT, projects thatcompanies will work with fewer key partners and want to pay less forservices, noting rates have already declined by as much as 5 percent inmany areas from just a year ago.
3. Professional expertise will be valued
With companies putting a greater emphasis on immediate larger cost savingsand lower risks, outsourcing service providers' profit margins will bereduced.
"Service providers will find themselves being squeezed between lowergrowth, capitalization constraints and higher demands for cost savings,driving profit margins down," said Corbett.
Outsourcing customers also will rely more on the expertise of outsourcingprofessionals in their own organizations to help manage the outsourcingprocess, putting pressure on advisors to demonstrate higher value.
"This increasingly self-service oriented customer model will be furtherfueled as more organizations implement outsourcing centers of excellenceand as more professionals gain certifications," said Jagdish Dalal,managing director, thought leadership, IAOP.
IAOP will continue to grow the ranks of certified professionals globallywith its Certified Outsourcing Professional(TM) (COP) designation thatdemonstrates professionals' expertise.
4. Strategic companies will prosper
The economic meltdown could create opportunities for strong,well-positioned companies, according to observations by Booz & Co, afounding IAOP member.
"While the economic climate will not immediately improve, companiesinvolved in outsourcing that act strategically and decisively for the longterm will be increasingly valued and sought," said IAOP board memberSven Govaars, senior vice president, Colliers International.
5. Social responsibility and green will be outsourcing themes
New government direction under Obama could promote higher emphasis onsocially responsible business environments, driving outsourcers to createsolutions that address them.
IAOP predicts these will include industry competitive employee retentionand welfare programs, as well as green operating environment fortechnology, real estate and manufacturing outsourcing service providers.
About IAOP
The International Association of Outsourcing Professionals (IAOP) is theglobal, standard-setting organization and advocate for the outsourcingprofession. With 40,000 customer, advisor and provider members worldwide,IAOP helps companies increase their outsourcing success rate, improve theiroutsourcing ROI, and expand the opportunities for outsourcing across theirbusinesses.
www.outsourcingprofessional.org.
Source :
www.ibtimes.com 
