In 2010, the headlines in offshore outsourcing may focus less on the quantity of work organizations are sending overseas and more on where they are sending it. The industry watchers predict that an increase in offshore Information Technology outosurcing in the new year. However in the year 2010, it is hardly expected to be a banner year for the offshoring-better than 2009 but far from the historic growth levels. The headlines in offshore outsourcing in 2010 may focus less on the quantity of the work organization are sending overseas and more on where they are sending it. Leading the companies will begin developing the networks of offshore companies will begin in developing the networks of offshore locations for outsourcing.
They will supplement contracts with the vendors in more developed locales like India and the Philippines with a new relationships in emerging markets in Latin America, Asia and Africa. The China analyst and industry watchers have nattered for a years about the nascent but promising Information Technology services industry in the world’s populous nation. The issues including the lack of managerial talent has prevented China from moving ahead as a destination for the outsourcing in a major way. The China is likely to garner attention mostly as a near-shore outsourcing center. One of the key factors that will determine whether the growth can continue into the future wherein the government encourages the structural change in state-owned enterprises.
The next one is India, this country’s dominance as an offshore outsourcing destination will continue, notes EquaTerra’s LePeak. It may present the disadvantage for the Indian providers and their customers. The outsourcing consultancy everest predicts the country’s Information Technology services providers will experience a growth rerival that late next year could be to spike in a wage inflation and attrition. To balance those trends, the vendo9rs will continue to move work to tier two cities such as Pune and Chennai. Several of the Indian vendors went on shopping sprees and it will now attempt to sell existing Information Technology services to the clients of the companies that they’ve acquired, although it will fundamental changes in their business models-most notably the need to do more local mor onshore hiring which could impact their bottom lines.
The Africa and the Middle East are both making concerted efforts to brand their industry. Undersea fiber optic cables connecting both East and West Africa with the world via broadbrand that may help emerging markets like Ghana and Kenya that make bids for the Information Technology and business process outsourcing business but offshoring maturity will take more time and effort. The Latin America is the large multinational outsourcers that may look south for acquisitions in 2010. Expect services providers to expand organically or via acquisition in Mexico, Argentina and Brazil specifically largely to serve markets. The Philippines is a long leading provider of a call center and the other Business Process Outsourcing services. The Philippines will outpace the India in its rate of outsourcing growth. The United States, is not technically an offshore outsourcing destination.
REFERENCE:
http://news.idg.no/cw/art.cfm?id=B8152752-1A64-67EA-E4011DD0B6BDB3A9
