Future outsourcing trends worldwide

Outsourcing expenditure will continue to rise.
More countries will find outsourcing attractive, creating a multi-polar world. Following the lead of the US and UK, the European Union markets will expand their offshoring programs, while Japan will increasingly look to China for its needs.
Clients will take greater control in driving and designing deals.
The interlinking of the supply chains brought about because of outsourcing will create stability as companies will put pressure on governments to avoid wars.
Risk factors and unexpected occurrences like war, terrorism, disease, natural disasters and economic upheavals can throw a wrench in the works.
The rising price of oil will put increasing pressure on companies to both utilize technology and outsource to remain profitable.
The rising price of oil will cause oil consuming countries like the USA to be less competitive resulting in more outsourcing to India and China.
India will show excellence in Services that require advanced English like Knowledge Process Outsourcing (KPO), Content and Medicine.
Political backlash over outsourcing is likely to lessen over time as economies strengthen and companies continue to reap the benefits of offshoring.
Technological power will shift from the West to the East as India and China emerge as big players in the global outsourcing market. The two countries have the size and weight to transform the 21st global economy.
By 2015 China will be No. 1, India No: 2 in the global top five outsourcing destinations.
Vendor focus will shift from basic skills, costs and processes to domain knowledge, transition challenges, change management, HR issues and governance.
Regional outsourcing hubs will develop as companies will take strategic near-shoring initiatives to minimize risk and leveragecultural and linguistic compatibility. The supplier countries are in the same time zone as their clients.
The large diverse Indian companies will face stiff competition from new focused smaller companies. Because these companies are able to focus and become excellent in one are they will be able to provide a higher level of service. In 2006 there will be a flood of companies targeting niche services.

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