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Predictions for 2007 Trends in the Outsourcing - 2006-12-05
From Yahoo!Finance Assessment of Outsourcing, Shared Services and Offshoring Industry Shows Competition,
Value as Determining Factors for Success
"Companies want to see the results of their sourcing projects turn out successfully," observed Trowbridge. "In this regard, we believe our predictions of the market will prove beneficial to industry leaders and buyers in all stages of the sourcing lifecycle.", observed Ben Trowbridge, Alsbridge CEO and Collaborative Outsourcing pioneer. Below are some of the predictions for 2007 of Trowbridge,based on Alsbridge proprietary data, public information and current industry trends: ♦ Because of a tightening U.S. labor supply in technology, accounting
and other processes, U.S.-based companies will accelerate their
outsourcing strategies to stay competitive. ♦ Contrary to prevailing opinion, cost of labor in India will remain
neutral when compared with wage inflation in the U.S. The offshore
trend will not subside. ♦ Contrary to prevailing opinion, China will still lag other markets,
mainly India, as a destination for English language driven BPO, or
shared services centers due to language, low national birthrate,
Intellectual Property and other legal issues. The exception will be
those companies who have a market strategy to sell into the China
market, which will override the former comments. ♦ New areas of Eastern Europe will open up and should be evaluated as
local authorities jump on the outsourcing, shared services and
offshore boom. ♦ The "location" decision will become more challenging due to shifting
political and threat profiles.
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