The outsourcing tends to face tremendous challenges with the emergence of late-adopting vertical markets. The trends in the outsourcing market keeps on changing. To know which way the outsourcing market is going a few factors and trends are required to be watched.

Consolidation:Competition for outsourcing contracts is more aggressive than ever with growth in the number of suppliers–so some significant consolidation is on panorama.

Recent rumors of a merger between sector heavyweights Infosys and Cap Gemini suggest the stars are aligning for some significant union.

Globalization: In this aspect it has been observed that India has been loosing its global value due to the lack of skilled workers etc. There are chances that China may overtake Indian counterparts as top destination for off shoring global delivery in next few years.

Person to person off shoring: Off shoring is more commonly associated with the idea of large-scale business redeployments–the relocation of a back-office function, say, or a whole department. But research suggests there’s growing momentum on a much smaller scale.

Green sourcing: Rising energy prices have put ecology issues firmly on CIO’s radar. But could pressure to demonstrate green credentials influence businesses outsourcing decisions as well? silicon.com’s CIO Jury of UK heads of IT recently revealed environmental factors play a key role in the selection of technology suppliers and partners.

Virtual worlds: The rise of virtual worlds such as Second Life is making it easier for companies to justify hiring offshore workers for tasks that may include building virtual offices or even working as virtual world ‘meeters and greeters’. The market for outsourced virtual world services is still novel, but businesses progressively are taking an interest in the likes of Second Life, so momentum is likely to build. Last month, news appeared of a partnership between a Chinese online entertainment company and Entropia Universe, a virtual world with a science fiction theme, to create a virtual economy that could provide as many as 10,000 jobs.

Over the longer term, customer contact jobs, including those for help desk and call center services could migrate into virtual worlds, where customers can be both informed and entertained.

This entry was posted on Tuesday, September 18th, 2007 at 3:00 am and is filed under Outsourcing News and Top Outsourcing deals. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.