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IAOP's Outsourcing Predictions for 2012

by: Sarah Joson

Wednesday, December 28, 2011 |

The International Association of Outsourcing Professionals (IAOP) recently released its top predictions or trends in the outsourcing industry for 2012.

The outsourcing industry is set to witness several changes in technology, market, as well as in terms of recession and even the elections. It is also anticipated that the US, nearshore countries, Brazil, Russia, India, and China will benefit the most next year.

The top outsourcing trends for 2012 are as follows:

Near shoring: The key driver for large firms to source in neighbouring countries or locally is the incentive and benefits- related efforts of the government.

Performance-based contracts: The client and provider will come up with performance-based contracts that will be widely used by various partnerships all over the world. Upfront relations such as customer support will also gain popularity, instead of the usual back-office setup.

New outsourcing destinations: Brazil, Russia, India, and China or BRIC will take the spotlight in 2012.

The dawn of new technology: Since technology has opened a lot of opportunities for various sectors, there's no question that the outsourcing industry will leverage each type of technological avenue to improve business processes, collect data, and even recruit new talent.

Security of the cloud: With the proliferation of the cloud come various security issues that may make or break a company. Providers and clients will definitely have a hard time keeping up with the trend and protect customer and company documents.

More mergers and acquisitions: The number of buyouts will definitely increase as appraisals dwindle and growth slows down for various sectors.

Hiring when needed: The sector is set to experience an increase in the number of candidates who specialize in improving the company's growth strategies.


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