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2012 Predictions for IT Outsourcing

By Infinit Outsourcing Subscribe to RSS | August 16th 2012 | Views:
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The outsourcing industry has taken the previous year by storm with the amount of deals signed and developments in the industry. There were both highs and lows within the industry and within the global picture, but what is important is that process outsourcing solutions providers were able to surpass the hurdles that were encountered along the way.

Our previous article, entitled “A Recap of the Year That Was” suggests that most, if not all, predictions for 2011 actually took place. It has been said that information technology outsourcing would gain momentum in 2011 and it did. However, in CIO.in, predictions published this year by outsourcing companies and industry experts suggest that demand for information technology outsourcing is going to change. There will still be a demand for IT outsourcing solutions, but it will not be as significant as last year’s. The sizes of deals that will be pursued this year will get smaller as information technology solutions providers, such as IBM (NYSE:IBM), have already started to go after smaller companies. Aside from the fact that they may have already exhausted the list of big enterprises, an explanation for such move would be the introduction of outsourcing companies’ new pricing model which is based on consumption and business outcomes. Also, the ability of IT outsourcing companies to provide efficient and streamlined processes and services will be highlighted in this new approach with the presence of smaller deal sizes.

Another notable trend, according to DATAMARK, Inc. that will be witnessed by industry spectators and players this year would be the rise of mobile applications and the cloud. As for mobile applications, it has already been predicted to rise in 2011, and it has indeed attracted attention and recognition. For 2012, it is possible for mobile applications to be integrated into the clients’ monitoring and auditing activities with respect to their outsourced processes. With regard to cloud computing, it has been talked about for a couple of years already but it will be different for this year. Cloud computing may slow down as risks for this particular cluster of the outsourcing industry is a little bit high. The idea and actuality of those risks being high would be the driving factor for lawmakers to enforce stricter policies and guidelines this year.

Shifting away from the tech aspect of the outsourcing industry, outsourcing industry experts, the International Association of Outsourcing Professionals (IAOP) being one of them, points out that there will be additional countries that will share the limelight with India and the Philippines as outsourcing destinations and catch the attention of companies who are looking to outsource. In the article snippet from CIO.in the countries mentioned are Brazil, Malaysia, Mexico and South Africa. However, the countries mentioned in the snippet from International Association of Outsourcing Professional’s article, countries that should be watched out for would be the BRIC countries, namely Brazil, Russia, India and China. It really seems that Brazil would be the front-runner when it comes to the emerging destinations for outsourcing this year.

There have been many insights gathered from industry experts, players and spectators and all these insights are quite impressive as most of them actually happen. However, these predictions are obviously a result of what happened the previous year, which is why what will happen this year is as important as the things that happened in 2011.

Infinit Outsourcing - About Author:
Jamee C is a Strategic Solutions Specialist of Infinit Outsourcing, a leading provider of outsourcing services to small and medium enterprises. It offers boutique it outsourcing that allow companies to gain a competitive advantage in their respective industries.

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