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Five Outsourcing Trends to Watch in 2011

by: Ronald Escanlar

Monday, January 10, 2011 |

2011 Outsourcing Trends

As 2011 unfolds, outsourcing analysts are forecasting trends in the market that will shape the industry through the coming year. One of the outsourcing industry’s leading outsourcing advisors, Technology Partners International (TPI), shares some insight with their Top 5 market trends for 2011.

Harvey Gluckman, TPI Partner and Managing Director, says he’s “confident that we’ve weathered the 2010 global economic challenges that influenced many CIOs’ IT operational and capital investment decisions.” Here are the five market trends that TPI believes will influence company sourcing agenda this year:

Cloud Computing - Still unproven. Cloud commercialization still lacks standards, and this lack prevents big businesses from fully integrating Cloud technologies and solutions into their processes. Gluckman says, “With the exception of a few Cloud point solutions, Service Providers will have to prove its business relevance or the Cloud theme will evaporate in a slow death.”

Service Integration. As companies widen their use of multi-sourcing delivery strategies within themselves, the “air traffic controller” will become more and more important, says Gluckman. He explains that as companies seek the best practices in integrating and managing services, they will have more time and the corresponding resources to create and achieve goals of innovation.

Social Platforms. Gluckman says companies will most likely set aside a fourth of their operating capital for social networking, investing in business intelligence and analytics to mix traditional data sources with data generated by social networks.

Increase of Rural Sourcing from Weak Dollar. Business requirements will drive companies to look for nearshore and onshore locations in rural settings. The reduced difference between the U.S. dollar and foreign currencies in offshore destinations will make nearshoring and onshoring attractive. 

Management Widens in Scope. Gluckman predicts that the number of companies relying on outsourced management services will increase, driven by expert assistance and to maximize outsourcing deals. As technology improves, companies will be able to manage service provider relationships at the macro level.

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