Outsourcing in 2013: Challenges for Euro zone

Euro

Business and economy have weathered a stormy past year, which means that the oncoming 2013 has a lot of hope pinned to it. The critical need for both sides of business, outsourcers and service providers, is to gear up enough to make sound decisions for the year ahead.

Here are a few of the forecasts that are set to change the playing field for outsourcing in Europe:

  1. Significantly increased Outsourcing on the cards: CIOs say more is definitely better, despite the voice of caution in the interest of the country’s economy which debates the benefits of near-shoring. This trend of thought draws strength from the advantages of mixed sourcing models. Countries in South Europe are set to outsource more.
  2. Economic and political changes to impact laws in service provider countries like India and China: Due to shaky economic conditions, small and medium vendors run the risk of closing down. This puts the onus on the selection of partners who will be able to sail through even unforeseen challenges.  There are even chances of some big names in the corporate world selling their businesses.
  3. New economies in the Outsourcing field: There could be emerging economies on the field but European outsourcers will be hard pressed to make partnering decisions only after a careful due diligence to understand their government policies, tax issues, work culture and political stability, to name just a few.  As per the global outsourcing report by Mark M and Dr. Frank, over 30 highly competitive economies will compete for an outsourcing opportunity in the coming two years.
  4. ‘Sustainability’ and Outsourcing:  With each passing year, being a global player means being able to steer towards sustainability and progressively green measures, so finding suitable partners will be an important consideration in the coming year.
  5. Bringing critical management functions back in-house: Decisions like these are being made in some in second generation outsource deals where the onus is now on managing costs and governance.
  6. The Cloud to become bigger: This is perhaps the one prediction that holds no surprises with the leaps and bounds it has taken in the preceding year as well. More large companies will finally adopt public cloud at the enterprise level. This includes even financial institutions that use public cloud for large parts of their businesses, leading to the standardization.

With these major predictions and forecasts, Europe has its focus set on 2013.




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