Predictions for 2013 – The Outsourcing Boom and Resultant Shift in Indian SMB Offshore Outsourcing
Indian outsourcing industry is all set to wake up from the hangover of the crisis it faced in 2012 and gearing up to make 2013 big. It is now eagerly looking at the predictions that an enormous amount of money will start flowing to the outsourcing industry in India as most companies over the world are on the verge of renewing their contracts which were inked 10 years back. Economists estimate that the amount will be around $50 billion – more than half of the total Indian outsourcing industry. Thus, 2013 is going to be a busy year for Indian offshore outsourcing providers, as they must grab this opportunity at any cost to revitalize their business. Now, companies are sharpening their strategical weapons to gain an edge over their competitors.Companies are now leaving behind many prevailing concepts that have been ruling the overall offshore outsourcing industry for decades. They are also in the process of restructuring the offshore outsourcing models, and aggressively experimenting with new efficient methods that just notfocus on cost-reduction but also on improving the quality, control and communication efficacy.
The same trend is surging high in the stratum consisting of small to medium outsourcing companies in India. There is a spree of innovations intended to give more personalized and cost-effective offshore outsourcing solutions. The most important objective of those experiments is to provide ‘the offshore facilities that big companies are enjoying’ to small and medium businesses (SMB).Building their own offshore centers is the strategy adopted by many big multinational corporations. It helps them to get highly skillful human resource, complete control over all aspects of the business and excellent cost-efficiency compared to their onsite development centers. Therefore, new offshore outsourcing companies targeting SMBs are trying to place these elements on top.
Although the traditional model of outsourcing could still provide considerable cost savings to clients, its major downside lies in the inefficiency to provide completely dedicate offshore service. Client has no control over the selection of resources, team management and project development. Barriers it puts up between clients and employees restrict the scope communication and the growth of mutual trustimmensely. They never get a feeling that they are running their own office.
The new generation offshore outsourcing companies in India are aiming to imbibe this ‘My Own’ flavor to their offshore engagement framework. The focus has been shifted to a global staffing model instead of a global contacting model. This model ensures 100% control in recruitment, employee management and project development. Higher degree of transparency easily builds a rapport between the offshore vendors and clients. The costs associated in this model are structured differently than the traditional models. As a result, clients engaged in this model enjoy greater cost savings. Therefore, in the coming days, it is expecting that this method would play pivotal role in the Indian offshore outsourcing industry that serves small to medium companies in other continents.