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.


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