With the advent of the internet technology, the East met the West and successfully made the world flatter as Thomas Friedman put it. Outsourcing helped develop new trends in business along with an exchange of lifestyles from the East to the West and vice versa. We saw the world converging as one under the global outsourcing. In the past, there was a global boom across the world due the success of the business process outsourcing (BPO), not to mention KPO, Contract Manufacturing, IT and more.
Past Outsourcing Trends
Taking the example of India and China, outsourcing data showed that the US preferred to offload their non-core activities to these countries as they had human resources that were cheaper, better and faster at completing these tasks. Labor in these countries is skilled and is able to complete tasks faster than most skilled labour around the world. Western companies capitalized on outsourcing businesses and wanted to concentrate on acquiring customers and offload their back-office activities like manufacturing, accounting and even editing articles for American and European outlets. The East captured the whole world with the ability of its skilled labor to master technical and non technical skill sets required to complete the tasks. This trend continued until the economic meltdown in the recent years.
Future Outsourcing Trends
Outsourcing articles focusing on trends predict that outsourcing businesses will actually slow in India and China and continue to shift to emerging countries like the Philippines, Taiwan and Latin America. As the domestic demand in India has increased significantly, there are more businesses in India making profits out of domestic outsourcing businesses. Outsourcing data shows that Indian companies prefer to outsource their non-core activities like advertising, human resources, accounting, and even strategic consulting to other firms in the country. In the west, Europe, Brazil and the African continent, particularly countries like Egypt are becoming hubs for outsourcing businesses. In eastern Europe too, many countries are attracting companies to engage skilled labour and foster international relations. India has had a maximum market share in the past in the international space with outsourcing businesses, but that is likely to change given the business climate in the west. In order for India to continue to keep its status of a major market leader, companies that are planning to outsource to India should not worry at all about the non-core activities.
New Outsourcing Businesses
Outsourcing businesses boom and fail within the financial year. Many unconventional businesses like medical outsourcing have succeeded in countries like India which reiterates the objective of outsourcing non-core activities. Current data in outsourcing articles shows that legal process outsourcing has kicked off with some success in countries like India and the Philippines. In the virtual world of the internet, almost all businesses are outsourced in countries like India. Internet blogging and internet viral marketing have set successful trends as well. As the IT services industry battles with price wars with their outsourcing clients, unconventional businesses will sprout to take in profits as IT services did in the initial years of outsourcing.