Hit and Miss and Wait to See Outsourcing Trends of the Year 2014

This year has become one of the special period for IT Outsourcing industry going thought lots of new challenges along with plenty of opportunities. This is true in this rapidly changing environment. It is certainly influenced by advancement in technology, global labor arbitrage and the attitude of enterprises in today’s difficult economy. At my earlier blog I have discuss several new trend which easily influence this industry. Let’s check the status of each trend.

Hits of Outsourcing Trends of 2014:

reveiw20141. Hybrid Offshoring Heats Up

A hybrid model, combining insourced and outsourced offshore services, did in fact gain attention as an alternative to pure-play offshoring. Today as companies grow and mature their governance skills, more companies are able to take advantage of hybrid models. These models rock though out of the year. They are the final realization of the outsourcing model that promised so long ago.

2. A Lower Cost Consulting Model Emerges:

As predicted by outsourcing expertise we have seen an increase in the ‘coaching model’ or ‘light-touch’ third-party advisory for veteran clients. At the same time, recasting an old deal in a renewal and injecting a multisourced ecosystem with selective repatriation is not for the inexperienced.

3. Big Deals Get Smaller. Small Deals Get Bigger:

This is one prediction did continue to be the name of the game. Some firms still push them, some vendors still push them, but clients are now very smart so they now believes in strategic outsourcing so they just, not send everything for outsource.

Missed Out Outsourcing Trends of 2014:

1. An Increase in Insourcing:


There is prediction that third of IT being outsourced would be done in-house by hiring professional software developers. But, although throughout this year it is not just happening. Buyers still consider the scope of their provider-based solution as well as the outsourcing delivery model.

2. Contracts Compel Inter-Provider Cooperation:

There has been an increased focus on operating level agreements to cause different suppliers to work together in the interests of the shared client. But, that’s not happen as supplier community has, to date, been resistant about the meaningful agreements for cooperation. It may be because Governance is perhaps more art than it is words within a contract.

Wait and See:

1. The Rise of the Machines:

This prediction turned out which impact robotics and artificial intelligence in the outsourcing space just began to take shape this year so, we can’t say that it is miss trend. However, it is look like this type of automation is taking the form of more sophisticated tools and programs that run, monitor and provide alerts on activities within data centers that can headcount requirements.

2. The Cloud Gets Grounded:

The Industry experts also predicted that companies will be able to perform one to one comparisons of different cloud options, as well as comparisons of cloud versus traditional solutions. It’s true that clients become very knowledgeable and realistic about the cloud-based delivery but, the cloud evolution has only just begun. So, It is better that to give more time to it, before saying this trend is hit or miss in the this industry.

Let’s see what is Store in the furniture of outsourcing Industry, in 2015 and weather, one of wait and see trend become reality or Hit trend of this year changes, any changes happen to Miss Trends which might become hit next year.  We should also not rule out any possibility of new trend which might surge in the coming time.


Select the Best Method for SharePoint Application Development Training

A lot of organizations spend thousands of dollars and even millions on launching SharePoint and then skimp when it comes to training, often offering users with e-learning and nothing more. This ensures that a company would never realize the full investment in the platform.

Many companies can benefit from investing in SharePoint training for their employees to take their web development capacities to new heights. Basically, there are two options in which companies could conduct their orientation, in-house or outsource. However, with each category are various choices. Organization managers must assess the current state of the platform in their company to plan a course of action effectively.

One in-house option is having one or more members of the information technology team, or the business department even, build upon their SP acumen and wipe the dust off components that have long been unused. Aggressively fostering a new thinking method could be good. Collaboration is increasingly important for coping with contemporary business demands. An in-house instruction for and by employees could make for a well-oiled machine with robust long-term potential.

Sharepoint Training

Another in-house instruction choice is investing in online SharePoint course. There are numerous courses, like those that are offered by Microsoft. These tackles different aspects of SP usage. This could be the most cost-efficient option. There is one drawback however, given the scope of the platform, it is vital that IT department heads and CIOs target training sessions which are most relevant to employee requirements.

Working with an expert, thus outsourced options may be the best method of shoring up deficiencies in the usage of the platform. The option is likely to be more costly compared to indoctrination done in-house. However, managers will ultimately can get more bang for their buck. One approach is to send the staff to a conference that is geared specifically towards the platform’s learning, from teaching the nitty-gritty of its functions to exploring innovative methods to utilize it for business enhancement.

Another outsourcing choice is hiring an expert of the business platform for teaching a project. The expert or even a consultant could help employees learn more about SP in the context of their actual working scenario, and provide hands-on personal instruction as well. Outsourcing to an expert on a project basis could also help employers ascertain that the company personnel could apply the lessons they learned. The unfiltered, concentrated attention of a professional could be used as personal resource for employees and help them apply SP to their task functions and ask questions in an environment that is low-key.

The main thing to keep in mind when deciding to go outside the firm is to find a training solution that will actually address the organization requirements. An instruction that is generic may not make much of an impact in the long run. The framework is getting more mature and mainstream so the training opportunities rise. It is always a good choice to reinforce one’s learning with real world experience and not to think that joining a course would prepare one for all circumstances.

The five steps that could help to the success of a transcription outsourcing project or process

Medical transcription is also known as MT, which is an allied health profession. It deals in the process of transcribing or converting voice-recorded reports that are dictated by doctors or other healthcare professionals into a text format. It is also a process for transcribing financial, legal, law enforcement documents. It has become a very lucrative career for many people all over the globe for years now. The job could be done in the comforts of one’s home and provides more flexibility and greater career options.

Medical transcription outsourcing has turned into one of the most important industries in the outsourcing field. Service providers offer accurate and fast medical, legal, law enforcement, financial and general transcription services. Organizing and transcribing documents in-house could be a stressful and time-consuming job. Outsourcing  then to a third party vendor is the best option.

On-time delivery, accuracy and cost-effective services are the major things that an organization must look for in an outsourcing provider. The most frustrating thing when hiring a third party vendor is hiring one that provides low quality or slow services. So, how does one narrow down the search? Here are five steps that could be used to be able to find the right service provider and be assured of quality works.
N 91. Before hunting for a sourcing vendor, it is vital to determine one’s transcription requirements. What is the turnaround time desired and does a high accuracy level important? Finding the answers to such questions could help figure out the ideal vendor for a business. There are offshore companies that offer low cost services but without compromising quality.

2. After understanding the requirements, begin researching several options. The internet could provide several information on service providers. The search results could bring up a comprehensive list. It is important to take some time to go through the sites of the vendors and review the services they have on offer. This way, the company could weigh its options before proceeding.

3. Before filling up a contact form on a site, it is necessary to talk or chat with the vendor’s representative. Questions such as quality control processes, level of accuracy, security, turnaround time and transcribers should be asked. This allows an organization to check the accuracy level of the firm and its expertise before being committed to them.

4. Once a company is chosen, it is good to ask them the process they follow. Most firms in India follow a simple process called “Voice to Text” wherein all that is to be done is to upload the file to be transcribed. If required, the audio or text file could also be emailed. When the work is completed, the file would be emailed back or made available for download.

5. The moment the transcripts are delivered, it is paramount to check for accuracy. Determine if the final transcript meets the standards in mind. If it is not satisfying, the vendor could be contacted and requested to make changes. Providing feedback could help them understand one’s requirements and accordingly meet them.

Software outsourcing is a beneficial method for the success of a business organization or enterprise

In the past, businesses normally hire offshore vendors to outsource services which are related to non- critical processes such as contact marketing and customer support. Offshoring has been used as well for labor-intensive tasks due to the fact that labor costs in some countries are considerably cheaper.

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Nevertheless, a new trend has emerged these days. With the evolution of communication and information technologies, businesses are outsourcing critical projects such as software development. Without a doubt, the outsourcing facility has provided big assistance and massive scope in the business and corporate world. IT is developing constantly in the form of an emerging industry today. There are different kinds of new techniques and software springing up in the market daily, making it hard for organizations to make their choice of the best product or technique.

The main benefits of outsourcing software include security, quality and sincerity. Nonetheless, it is necessary to remain cautious when taking the services of service providers to avoid outsourcing confidential and secret document or information during the process. It is always beneficial to opt for the services of a provider that is reliable and trustworthy so there would be no misuse of prestigious information.

Reduction of the cost is considered to be one of the biggest and highlighted advantages of outsourcing. Basically, the costs are in terms of lowered utility and labor expenses. It saves on office space, rental fees, utilities, extra employee benefits, training and certification costs and resource add-on request expenses. The  reduction could mean millions of savings for a certain organization. This is the reason why transferring software requirement offshore works in the form of a driving force for businesses.

Another benefit is the increase productivity. A business could have the freedom to set up its own project the way it wants and thus need not have limited operating hours. A business could operate twenty-four seven. Organizations always strive for increased productivity with lower costs and this comes as a result of IT outsourcing. The process paves the way for resources pooling on a huge scale. It’s not easy to create a pool of very smart and productive experts and employees. Transferring an IT     requirement to a third party vendor is a great way to diversify a team. Each contributor belonging individually to an entirely different background means different knowledge and though processes. This is a healthy category of resources that possess various educational and practical backgrounds and changeable approaches that could surely bring in fresh air to an enterprise.

Enterprises that are into sourcing their information technology needs in general have good knowledge and experience in the industry. They make use of exceptionally smart and talented project managers as well as business analysts who ascertain that all the solutions provided are client-oriented and instant.

The high rates of successful projects delivered by providers also made sourcing popular. The positive results of the delivered projects enable companies to get the job done without investing too much time on the development phase. Outsourcing further fills the gaps in an organization. For instance, if it lacks the manpower necessary to undertake IT projects, a dedicated team or remote vendors could fill the void in the company. This boosts the firm’s capabilities with no need to hire experts and new employees.

Why India able to retained its rank as the number one offshoring destination in the world

Based on the current report, India has retained its coveted position or rank as the number one offshoring destination in the world. Moreover, it has not only maintained its ranking but it is also increasing its lead over number-two ranked China.

UntitledThe increase is very interesting, particularly when looking at the debate which as going on around five years ago, when people were talking about the nation losing its competitive edge. Indian outsourcing is not the same today as it was fifteen or twenty years ago, it has immensely evolved and  now spans the full value chain low-end business process outsourcing to high end knowledge process outsourcing. The offshore industry begun in India and has been able to grow the BPO and IT sector to billions and capture more than the offshore outsourcing field.

The United States and Europe are the biggest clients for the Indian vendors and account for sixty percent and thirty-one percent of IT and BPO exports respectively. The biggest vertical sectors are the financial services, high-tech field, manufacturing and retail. The information technology and business process outsourcing first started in the country in the mid 80’s. The huge, English speaking, low-cost workforce was the main draw. The industry grew fast through the 90s.

The global recession in the years 2008 and 2009 has had a negative effect on the outsourcing growth of the country. However, the sector has experienced a turnaround in 2010. Most European and US organizations are still wary about the speed or staying power of the economic recovery and so are looking to maintain a low cost base in locations such as India. It has bounced back to its double digit growth.

The country is the biggest democratic country in the world and its demographics and history have positioned it well to benefit from the new global services market. Most of the subcontinent was annexed by the British East India Company during the 18th century. Although colonization had a lot of drawbacks, the act combined several previously independent nations and built the foundation for a massive national economy. The British colonization brought English to the nation which has become the business language in the world and a great advantage for India.

At present, the economy of the country is one of  the biggest emerging economies in the world. It continues to be the most preferred destination for businesses and organizations looking to offshore their information technology and back-office functions, regardless of the backlash against sourcing to the region. Moreover, it also retains its low-cost advantage and among the most financially attractive destinations when seen in combination with the business environment it provides and the availability of highly skilled professionals.

Without a doubt, it has maintained its number one position amidst the other well-established hubs dropped in their attractiveness to be replaced by new emerging destinations. The top three places remained the same, India, China and Malaysia. The outsourcing industry in the region is also expanding its reach to focus not just on companies and business from Europe and the United States, but also in other  emerging nations in East Asia as well.

A look at what is next for the outsourcing industry in India in the changing outsourcing scenario

India has been the pioneer when it comes to providing outsourcing solutions. Moreover, the country has also been offering a range of services to countries all over the globe. Regardless of the severe banking and financial crisis that has affected the world’s economic growth, most of the BPO, IT and KPO organizations in India have maintained good records of success.

With a big market size, the outsourcing industry in the country still continues to dominate the global market. While there may be competitors in the market such as Malaysia, Philippines, China and others, it is still the major player in the world in providing outsourcing offerings because of its numerous advantageous factors. It is known that multinational firms are known to be sourcing engineering tasks and product development services from their centers in India. Therefore, it is right to say that the country is continuing to leverage its fundamental advantages of cost, talent, quality and early mover advantage and experience to acquire a huge share of the growth of global sourcing of information technology and business process outsourcing.

In the twenty-five years since its well-known information technology services trade group NASSCOM or National Association of Software and Services Companies was formed, the global outsourcing industry of the country has experienced remarkable growth but has its share of ups and downs as well. The global economic turndown has impacted not just the Indian companies but the multinational organizations and captive centers as well. Luckily, the industry realized that it was too valuable a crisis to lose and service providers took is as a chance to change their business models. Vendors became more nimble footed; they changed their way of hiring and altered their structures from tech-driven to a more vertical one.

IT Outsourcing

The sector has matured a lot. Better, cheaper, faster is now a given. Clients are looking beyond the costs. Technology has been consumerized, whether it is about cloud computing, social media, mobility or analytics. All these are now being integrated into IT offerings. Experts in the business claim that cloud computing have increased revenues. Today, Indian vendors are seeing more opportunity in helping small to medium organizations leverage the new cloud technology. Buyers are changing their approach as much as the service providers. Because technology has become so complex, companies find it hard to do it all in-house to they are outsourcing more.

Nowadays, around twenty percent of the work from Indian vendors occurs at the customer’s website, and this is growing. A lot of organizations are setting up development centers in the UK, US, Latin America and elsewhere so that they could be in the time zone of the clients. The US is a large market for India and the present immigration reform bills have many provisions that are positive, including increasing visa limits and green cards. In truth, while jobs were disappearing in construction and manufacturing, they were being added in the technological space. The industry is going through a transition and the services sector has been growing well. In the last two or three years, the industry grew around 12 to 14 percent and Indian service providers expect this to continue in the years to come.

How to determine if offshore outsourcing is the right solution for an organization or business

The vision of how organizations and businesses are evolving mirrors the current rend across the entire business process outsourcing market. Offshoring is actually a concept in which a company transfers a part its function to another firm located overseas.

Very mature organizations continue to transfer most of their tactical and operation procurement activities to a lower cost delivery center with all the corresponding policy, governance and workflows embedded already, adhered and accepted across the business. Nevertheless, there are still companies that are hesitant and even wary of the method of offshore outsourcing, particularly with the emergence of cloud computing. So, how does one determine if the process is the right solution? Keep in mind that offshoring is not for every company, so it should be weighed carefully as well as several considerations to think about.

Software Outsourcing

The main reason why firms prefer offshoring is because there are less few organizations that have more accessible resources compared to the resources that exist in one’s own country. Usually, this is done to achieve a competitive edge. Outsourcing offshore is also beneficial since due to the fact that there are so many service providers and vendors offering services at affordable rates.

The different kinds of offshoring include knowledge process outsourcing, software R&D, information technology and business method sourcing. For a particular task to be eligible for the offshore process, it should have the following parameters:

  1. It should have high information content
  2. The task involves repetition of skills
  3. Involves work which could be set up easily
  4. The task could be transferred on the web
  5. Could involve work on the telephone

Businesses and organizations are finding it more convenient and cost-efficient to tap into the diverse pool of talent of highly skilled professionals abroad to do different areas of business such as IT, telemarketing, accounting, customer service, market research, development and even animation.

The process combines the benefits of simply outsourcing, such as access to more specialized skills. Naturally, the cost is lower and ensures higher productivity. Transferring tasks to an offshore setting has been the fastest growing segment of the market. This is particularly true in the information technology services, with India as the leader in that space. BPO is another area of offshoring that has grown in an amazing pace.

Beyond the costs, offshore sourcing could be used to accomplish tasks that the company may not be equipped to take care in-house. Call centers are a popular service that is often outsourced to other countries. Choosing the right vendor for a long term relationship is paramount. By and large, the offshoring process depends on the relationship that is established between the customer and the offshore vendor. A common practice of companies looking to outsource would be to depend on the prime factor, which is location. After careful consideration of the matter, a business or company could choose to transfer a certain task of tasks to other shores, depending on the needs. Moreover, it could also opt to outsource to a service provider located just within one’s locality or country. It all boils down to the goals and objectives of the firm.