6 Trends which will Dominate Outsourcing in 2016

2015 witnessed several changes in the outsourcing trends, and experts believe that 2016 will see a major shift in these trends for the outsourcing industry, worldwide. Some of these shifts will emphasize on leveraging newer technologies and methodologies while others will focus on quick deal making for faster time to market.

Here are the top 6 trends which will dominate the vast outsourcing industry in 2016:

  1. Comeback of Offshore Captives – As per an outsourcing expert, the companies will focus on reducing costs by lowering down the provider’s margin, as well as augmenting the flexibility by removing the contractual constraints. For this, companies will leverage the experience gained from working with outsourced teams and the process maturity. They will also emphasize on using smarter ways to outsource that will not only reduce costs but also will help them avoid mistakes which they had committed in the past while outsourcing.
  2. VMOs will go Mainstream – VMO (Vendor Management Office) will become one of the most underlying requisites for outsourcing, and companies will pay attention to establishing VMOs in 2016. In order to address the challenges pertaining to increasingly complex and critical multi-vendor service delivery models, the companies will seek to setup VMO to get a high-level enterprise-wide view of the organization while managing day-to-day operational details with ease. It will also help in managing multiple touch points amongst different providers in the service delivery chain.
  3. Expansion in the Services Offered by the Service Providers – The companies will continue to source services from an ever-augmenting list of digital and emerging technology services providers. The service providers will also extend their service ecosystem and deliver a vast set of services related to IT, Engineering, BPO and much more.
  4. Automation will Acquire the Centre Stage – After being exhausted by outsourcing the work to people across several low-cost markets, the companies will now begin outsourcing the work to machines. Both customers and service providers will be seen reconsidering their deals as the integration of RPA (Robotic Process Automation) into the IT service delivery will happen.

    Clients will be seen reconsidering their services sourcing strategies and how to develop their RPA capabilities. On the flip side, the providers will continue to introduce and innovate the automation into their technology solutions. Both parties would have to work on redefining the roles and the skills required.

  5. Agile Sourcing will Emerge – 2016 will witness a great change in outsourcing decision-making as it will speed up to deliver services faster. As the technology changes dynamically, the companies which decide on digital strategy will execute quite quickly in this year to avoid witnessing a technology change and achieve faster time-to-market to gain a competitive edge. We will see a large number of clients deploying extensive negotiation teams working on the agile basis for closing the deals faster.
  6. Multi-Speed IT will Emerge – While some experts are calling it two-speed, others are naming it the “bimodal IT”. But, whatever you call it, the outsourcing clients will recognize the need to take different approaches towards managing and running their businesses. They will use the bimodal approach for implementing contractual and commercial mechanisms for delineating the roles of the respective groups, and for optimizing the contribution of each party to the business.

If you are looking for a reliable and trustworthy company to outsource your business operations, feel free to contact us at Outsource2india to discuss your requisites. You can share your outsourcing requirement by leaving a comment in the box below and our executives will contact you.

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