Multiple organizations are undergoing a transformation citing the technology leap, which in turn is driving the economy. Businesses capitalize on technologies to grow and enhance their performance. Outsourcing, especially in the IT field, has been a prevalent trend since many years for countries which have a shortage of skilled manpower. This has mainly impacted many businesses. Business process outsourcing and offshoring are the latest trends that are growing fast. Recent years have shown how this relationship has produced technological wonders as they work when done correctly and on time. However, the landscape showing emerging trends in 2019 is quite promising and fields like AI and blockchain technology with talent shortage could contribute to an increase in outsourcing.
Cost reduction will reduce focus
BPOs were initially utilized with the intention of cost reduction. This relationship in the future will be more process oriented and not focused only on reducing the cost. Clients will look for the value delivered rather than reducing cost. The outsourcing companies will be integrators and partners for their customer. Risk sharing will increase because of this.
Global Skill shortage
Though unemployment has reduced in many countries still finding the right person for a particular job is not an easy process. Still, companies who lack in house team opt for outsourcing. The reason behind this is the demand for people who can run the show from day one with limited training. This work against them as already the talented number is quite low. So certain jobs which require a niche skill set will continue to be outsourced.
Cloud Sourcing Platform
Technology will run the business. Cloud platforms are improving the business processes and give the company an edge over its competitors. This is opening doors for outsourcing services who can handle cloud technologies for the business.
Outsourcing of core Business
The major change will be from outsourcing non-core services to the outsourcing of core business operations. The outsourcing companies will be partners and risk bearers. Outsourcing the non-core activities will continue but it will not be sufficient for the company to go ahead.
The shift from single outsourcing company
In the future, no big company will be able to provide all the skills provided to run the operations. When it will be difficult to satisfy all the organizational needs with the in-house skilled workers the businesses will be outsourcing to multiple partners. They will search for a partner with expertise in the required specific area. So, IT outsourcing trends will move toward specialization and skill development.
Automation is an important IT outsourcing trend that will drive the future. The virtual agents and BOTS will run the industries. The huge investment will flow into robotic process automation and artificial intelligence. Switching to the automation tools will become a necessity as the delivery would be done according to the client’s requirements.
Seeing the above trends, 2019 is going to bring in some solid change in the outsourcing market. Organizations will look for partners who can help them move faster and have a competitive edge in the market. Software outsourcing vendors have to meet the new market demands. As the competition rises there should be clear strategies in place to choose the best partner where outsourcing will become a niche phenomenon.