In the present scenario, outsourcing is the most popular and growing business across all domains.In that regards, the biggest question that pops up with the changing time and technology that what will be the future of the outsourcing industry in the coming 10 to 20 years?

1. Build a Better Business with Outsourcing Services
Outsourcing Future:
In the present scenario, outsourcing is the most popular and growing business across all domains.In
that regards, the biggest question that pops up with the changing time and technology that what will
be the future of the outsourcing industry in the coming 10 to 20 years? It is a known fact that India is
positioned as the major outsourcing hub, however, the question about it being able to remain in
that position in this dynamically changing industry is in the minds of many.We all are aware of this
that the dynamics of the global business are changing and so is the concept of outsourcing.
Current and Future Trends likely to affect the Outsourcing Market
 Post the global recession, the outsourcing industry emerged as one of its after effects. Here
are the list of trends that will surely give us a glimpse of the future in terms of outsourcing:

2.  The experts analysing the trend predicts that the industry will continue in order to fight the
short-term cost pressures. They also firmly believe that there will be constant pressure on
the service providers for the flexibility in pricing contracts.
 From a buyer’s perspective, they will seek more standardised solutions from their
outsourcing partners.As a result of which the Service Providers will have to differentiate
themselves based on their performance and not on their pricing. Hence, the pricing module
for these service providers will be stabilized to a greater extent.
 The trend of the alliance with Service Providers will continue to be focused on the increased
operational efficiencies, better quality control and reduced back office costs.
 Earlier shared and common services wereconsidered to be threat to outsourcing. However,
that trend is changing now.It is proven that sharing critical business and IT services cuts cost,
reduce the possibility of errors and improve the productivity for organizations.
 There is a prediction from the industry experts that after India, now Latin America and
Europe are going to be the new outsourcing destinations in the coming years.
 Also, it is expected that countries like Brazil and Russia will make their presence in the global
outsourcing market and China will be seen moving ahead.
 The consumption based technologies that are delivered through cloud will be seen growing
multiple folds as they are very cost effective.
India's role in the outsourcing industry
Since India has been able to evolve with the changing needs, it continues to be the major
outsourcing destination.NASSCOM (National Association of Software & Service Companies), the apex
body of India’s premier IT software and Services companies has reported a rise in the outsourcing
market in the coming Years with a bright future of India due to its best in class customer service and
efficiency.The customer’s expectations from their outsourcing counterpart is not only cost effective
solutions but they also look for skilled staff, enhanced productivity, better service quality as per their

3. standards and business process excellence.India with its large population and multi skilled people
continues to be a preferred destination for both the back end and front end outsourcing.
Opportunities for India in terms of outsourcing are:
 Infrastructure Management Services is also worth of great potential and would take India
great miles providing a wide range of the management services for IT infrastructure,
application operations, IT security and maintenance to companies.
Challenges for the Indian Outsourcing Industry
 The companies are moving towards smaller Tier II cities as the labor costs in the Indian
metro cities have risen.
 India continues to be the world leader in the outsourcing market, however it will have to
face challenges in the coming years from South-east Asian countries like Indonesia,
Malaysia, Philippines, Singapore, Vietnam and Thailand who are also moving ahead
improving their current positioning in the outsourcing market as an alternative offshore
location.
 Countries like Indonesia is challenging India by offering cheaper labor in IT and business
process skills.On the other hand, the labor costs in India are increasing along with the high
attrition that are major concerns and need to be addressed.
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