November 23, 2016 5:05 pm | Updated 6 months ago.
Change is inevitable. As 2016 is running its last lap, D2e takes a peep into the key areas that need to be focused. Offshore outsourcing has occupied a position of relevance as an important business process and businesses that had begun as small BPO centres is now a multi-trillion dollar industry. Deloitte in its report on Global Outsourcing Survey estimates that outsourcing will witness a surge of 12-26% in 2017.With the election of the new American President and a trend which envisages that offshore outsourcing will rise let’s take a walk through some key areas which need to be focused.
1) Government Policies – As policies change so do outsourcing deals. Government policies have always played a massive role in the outsourcing arena. Outsourcing is the outcome of tough economic and competitive climates and the necessity to cut and control cost. For example in Japan, there is a prevalence of wholesale outsourcing of government IT to companies since the past four decades. It was common in UK , Australia, and New Zealand to find at least five top companies in the IT sector that accounted for about 90-95% of the total amount of outsourcing that was done in 2000.After Brexit, as UK moved away from the EU, rules and regulations underwent a change that affected the business community. Americans are still unsure about the changes in the trade policies that will be implemented by Trump, the newly elected President. As more and more companies are adopting cloud technology and digitisation, business organisations will have to be constantly updated about the policy changes.
2) Technology and digital footprint – As more and more organisations are adopting the technology, companies are outsourcing at a faster rate. Outsourcing is on the rise as there is a scarcity of talented people. A new kind of economy known as the digital economy has taken over and the gainers are not the one who solely depends on cheap labour and ordinary capital. Anybody with the right kind of ideas along with talented resources will lead the market. As it is explained in the bestselling book, The Second Machine Age, “The winners are no longer those able to compete solely based on cheap labour or ordinary capital, both of which are being squeezed by automation. Fortune will instead favour a third group: those who can innovate and create new products, services, and business models. So in the future, ideas will be the real scarce inputs in the world – scarcer than both labour and capital – and the few who provide good ideas will reap huge rewards.” So, organisations need to be proactive and agile to satisfy their customers.
3) Shrinking Talent Pools – According to a recent report, The US Bureau of Labor Statistics projected a growth of jobs in the technological sector to half a million from 2014 to 2024.The problem is from where the talent will come from. There is an acute shortage of skills related to cloud service management, mobile and Internet of Things. To address this problem many organisations are outsourcing their IT related jobs to offshore locations. Outsourcing has increased and has become one of the most viable options in the present scenario. Economist forecasts that the skill gap will increase with rising inflation making it tough for organisations to provide quality verticals.
As Robots, automation, the digital economy takes center stage; exciting times are ahead for outsourcing companies who are able to change with the changing times. Success will come to those organisations o can adapt themselves fast to the changing situations. An Aggregator platform like D2E’ can contribute significantly in this space by bringing together partners with technologies in digital training platforms and digital training techniques.