The outsourcing industry has been witnessing a growth in the recent years and Asian countries like India, Philippines, China and Malaysia have become the favourite outsourcing destinations of US and European companies. This industry has been witnessing a lot of developments in the recent years and has seen a lot of integration of technology.
The BPO companies have been trying to move vertically in the value chain and this industry has also witnessed some recent trends like “Insourcing”, “Unsourcing”, “Near Shoring” etc. It has been predicted that though the outsourcing industry will witness a growth in the number of deals in 2012-13, the deal sizes would be smaller. Some other trends which need to be watched out in 2012 have been discussed here.
Tholons a Services Globalization and Investment Advisory firm which has presence in America, Europe and Asia have published their research report discussing the top trends of outsourcing in 2012. The trends that they predict for 2012 are:
- More and more companies would be focusing on Vertical BPO. Tholons expect that there would be an increase in demand for domain specific processes as companies look for more value addition in their processes to beat the economic slowdown.
- There would be an increase in demand for Analytics as a service as large scale computing becomes less expensive and more efficient. The verticals which will be extensively using Analytics as a Service (AaaS) are Healthcare, BFSI and retail sectors.
- There will be a rise in usage of platform BPO i.e. Business Process as a Service (BPaaS), where the service providers will be delivering their service in pay as you use model.
- An interesting trend to watch in 2012 would be near shoring to Latin American countries becoming more attractive. Costa Rica, Chile, Uruguay will be the countries to watch out for as near shoring destinations.
- There will be an increased intervention of governments of US and UK with regard to policies of outsourcing. The governments are looking forward to increase the near shore presence of companies with diminished contract sizes and are encouraging companies like Accenture, IBM and HP to establish operations there.
- Japanese companies would interestingly increase their investments in outsourcing as the country natural risk remains at a high. The continuing surge of Yen, decreased domestic consumption and the massive earthquake of 2011 have forced Japanese companies to invest outside.
- 2012 would see an increased use of social media by BPO service providers as they will use it for communication and better Customer Relationship Management.
World over, countries are facing immense challenges like heavy volatility of rupee in India, leadership changes and policy changes in US, France and Russia and the world economy has been witnessing a slow down. To ward of these challenges, the global outsourcing service providers would increasingly look for new markets known as 2nd wave outsourcing markets and Tholons see a more complex global IT-BPO landscape shaping up in the near future.