What will the future of business outsourcing be like? Will outsourcing continue to be one of the top business trends in the next 10 years?
As more and more companies rely on business outsourcing nowadays, there are still a good number of corporations who are a bit apprehensive if this business trend will continue to develop and improve in the coming years.
According to Mohanbir Sawhney, one of BusinessWeek's 25 most influential people in e-business, the future of e-business can be likened to an hourglass, the blue-collar jobs at the bottom and the white-collar jobs on the top getting hit the most. Shawhney explained that more people would rather work as a skilled worker in a developed country than stay in their homeland and earn just enough money for the daily needs of their family. Sawhney further adds that as India and China resort to more skill-oriented outsourcing, the questions that the United States would increasingly need to ask is: why should a software guy with the same qualifications be paid more in the US, when there is a similar guy in India willing to do the same job at one-fourth the cost.
London-based independent market analysis firm Data monitor made a research report on outsourcing showing the lessons learned from the past issues of outsourcing and what will drive its success going forward. According to the report, outsourcing is continuously expanding its geographic scope and increasing its vertical reach. Datamonitor added that best-shoring is considered the best strategy for an outsourcing business. This shows that more companies are choosing to outsource specific company functions to locations best suited to perform them. This way, the investor would save on the cost of sourcing the work domestically, and at the same time, could further remove the implacability of using only one offshore location.
The globalisation of the workforce will continue to surface and there will be a push that will increase the quality of outsourcing skills set.
A special report by BusinessWeek claims that management challenges will become more pressing as the increase in global salaries dissipate the easy cost gains from offshore outsourcing. Furthermore, it stated that the successful companies in the future will be those that would be able to take advantage of the global talent to transform themselves and their industries, while at the same time, providing jobs for everyone.