Offshore outsourcing trends

National Small Business Week Day 1
Image by ShashiBellamkonda via Flickr

No doubt since the business of offshore outsourcing began, there have been emerging trends which have become necessary to adopt in order to stay afloat. Some of them have especially helped to cut costs greatly, resulting into more profits for small businesses.

Experts agree on one thing, and that is that the first strong trend to emerge is the need for near shore outsourcing. What this means is that many small businesses and companies will in the near future find it more appropriate to hand all the work to vendors who are in areas that are in the same geographical region as the business. So far, Europe has emerged a leader here, where off shoring banking and working contracts have risen by percentages year after year. Near shoring is appropriate when there is need for clients to travel to the field to establish a working relationship with the outsourced teams.

The second trend is that even though outsourcing is cheap, it could become even cheaper as more vendors emerge from the market to compete for the few short term IT plans that businesses have adopted. No big or small business wants to invest in big IT plans after the 2008 economic crunch. This will lead to many vendors and little work – which will mean lowered rates for good work.

The off shore job vendors will become more professional and more competitive. It is a very competitive field and therefore even in the outsourcing of its services, it requires no less. Off shoring organizations will simply have to upgrade their skills and certifications to match the hiring companies’ demands.