Offshore Outsourcing, despite all speculations and outcries, is still prevailing as a viable business model for global industries. It was during the Y2K crisis and the dot com boom the word outsourcing got global recognition. Later the setbacks of recession demanded organizations to develop business strategies that are better aligned with market realities. Organizations flocked around the offshore outsourcing locations mainly to focus on lowering their operational costs. Now, in this post recessionary phase, outsourcing still remains an important strategic tool rather than a reactive decision to measure the ever changing business dynamics.
Let us look into the current scenario of offshore outsourcing. Outsourcing is currently transforming from the existing service provider-client model to a productive partnership model which brings in industry expertise, process excellence, and strong delivery capability leading to organization’s overall growth. While cost saving is an allied factor with outsourcing, it is no more the dominant factor. The outsourcing industry is now getting more matured where service providers and clients are aiming to establish a long term relationship in business
The trends in outsourcing are changing gradually. The traditional model of outsourcing is now replaced with a global sourcing model where quality resources matching organizations specific objectives are selectively sourced from global destinations. Another emerging trend in outsourcing industry is ‘collaborative outsourcing’ where the offshore centre acts as a natural extension of the in-house environment. Offshoring has gone far ahead from movement of noncore services. In this age of cloud computing, more and more core services like SAS( Software as a Service), RIM (Remote Infrastructure Management) etc are getting outsourced to offshore centres. Here outsourcing scenario transforms to a broader term where organisation offshore centres act as different financial models at diverse geographical locations with a common business goal. Strategic planning, partnering, and management are essential to achieve this.
The success of offshore outsourcing lies in finding the right outsourcing partner who can support with extensive investment in technology, methodology and resources. Organizations are realizing the significance of offshoring in business transformation. The trend in outsourcing will continue to change. The ability to quickly respond to market changes and keeping in pace with it determines the success of any business.