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Latest Developments in Outsourcing this Year

by: Sarah Joson

Thursday, June 14, 2012 | Outsourcing News |

Outsourcing Trends 2012

TPI Momentum Chief Research Officer Paul Reynolds recently gave a sneak peek of their report entitled “Momentum Market Trends & Insights 2012 Vertical Industries Report” at Info.ISG-One.com. The study highlights the developments in year-on-year outsourcing spending, covering 27 sectors. A 12-percent decline was seen for consumer durables, compared to the 53-percent influx on spending activity on utilities as service providers aim to meet new standards. The report also shows key indicators of the outsourcing habits of clients and what drives them to avail of services.

These are the top five most noticeable factors across all segments:

1. Clients always want to improve their business model/process. Service providers know this by now - majority of clients want to outsource because they want something new that could improve their business. Some of which are new strategies, improved Software-as-a-Service (SaaS) operations, and even increase in outsourcing activity.

2. Cloud integration. Different verticals use the cloud for different reasons. These industries deal with sensitive data that can affect the client and its customers if not handled properly. The cloud is more compatible with digital companies that need basic data storage such as software & services, as well as technology hardware and equipment.

3. Usage of social media and mobile technologies. There are some industries that greatly depend on digital social activities and the latest in mobile technologies, which is why firms look for service providers that are experts in these fields.  

4. Service value over costs. In 2011, cost reduction was seen as the primary reason firms outsource business processes. ISG even saw that more and more clients opt for standard offerings to make way for lower prices. However, this can also change as the cloud becomes more popular.  

5. Clients want flexible pricing. Clients want a more flexible pricing model, which not only covers price variability - they want to get the most out of what they are paying for.

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