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Trends in the Outsourcing Market for 2015

by: Sarah Joson

Wednesday, February 4, 2015 |

An article at CFO.com revealed the latest research findings of outsourcing advisory firm Pace Harmon.

Outsourcing trends in 2015

Andy Sealock, a partner at Pace Harmon, said large companies should make sure that they are working toward achieving a collective goal rather than singling out and focusing on specific functions. He added that some of the approaches that companies are expected to integrate are outcome-based solutions, cloud technology and assimilation, and proper dissemination of shared services. For instance, instead of buyers paying for a fixed outsourcing package which usually includes prescribed products and services, they can now pay for pre-agreed results in outcome-based contracts.

Other trends include the following:

• “Market facing” cloud-based solutions for marketing, campaign management, and inside sales. It will be mostly anchored on compensation and incentives versus performance, as providers align their offerings with the needs of the clients.
• Shared services, which mainly consist of back office functions like finance and accounting, human resources, and sourcing, will be more aligned since companies are deviating from disparate shared service centers.
• Innovative strategies will be positioned even more to help improve and reinforce goals. These include apps for public and private cloud that are seen to modify how metrics, data, and service level agreements will be handled.

Meanwhile, another report from CIO magazine highlighted the outcomes as one of the major factors that will make waves this year. Both buyers and outsourcing providers will be more open to the outcomes set up to rule out expensive, upfront investment costs.
CIO also predicted that buyers will be leaning more towards multisourcing, which consists of small outsourcing deals divided among several providers.

Scott Feuless, Principal Consultant at outsourcing consultancy Information Services Group, said we will see more organizations contracting with multiple providers as cloud-driven services such as Software-as-a-Service [SaaS] gain more traction.

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