What is in store for business outsourcing? Will outsourcing continue to be one of the top business trends in the next 10 years?
As more companies rely on business outsourcing, there will still be a number of corporations who will remain apprehensive if this trend will develop and continue in the future.
According to Mohanbir Sawhney, Businessweek's one of the 25 most influential people in e-business, the future of outsourcing could be best explained using an hourglass showing the blue-collar jobs at the bottom and the white-collar jobs on top getting hit the most. Shawhney explained that since there is a growing demand for skilled workers in developed countries, more people would rather work as a skilled worker and earn more than stick to their low paying jobs. Furthermore, Sawhney pointed out that the United States should be asking why 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 job at one-fourth the cost.
Datamonitor, a London-based market analysis firm made a report showing the lessons learned from past issues of outsourcing and what will make it go forward. According to the report, outsourcing is continuously expanding when it comes to vertical industry reach as well as geographic scope. Datamonitor added that best-shoring is considered the best strategy for an outsourcing business. This shows that more companies or their investors are now choosing to outsource some company functions to the best suited location. This way, investors would save on costs of sourcing the work domestically and this could further remove the implacability of using only one offshore location.
The globalisation of the workforce will continue to rise and there will be an increase to the quality of outsourcing skills.
In a special report conducted by BusinessWeek, it states that the management challenges will grow even more urgent as the increase in global salaries dissipate the easy cost gains from offshore outsourcing. Furthermore, companies who will be successful in the future are the ones who will be able to transform themselves and their industry and at the same time being able to take advantage of global talent while still being able to provide jobs for everyone.