New Delhi, Tuesday, Jul 01, 2008: Reverse outsourcing is all set to be the next big thing in the outsourcing industry. Traditionally India had been the beneficiary of jobs being transferred from the US. But that is about to change. The latest evolution of outsourcing is moving in reverse, with India’s leading service providers opening offices on Main Street, USA, according to the recently released Brown & Wilson Black Book of Outsourcing 2008, State of the Industry Report.
Though the reverse outsourcing development is too new for Indian companies to point to actual cost savings yet, but moving front office processes closer to the client is fast attracting buyer interest. Major suppliers are responding to the demand for enhanced, locally delivery customer service. The Black Book estimates that the demand for reverse outsourcing is likely to grow with over 50% of Indian outsourcing firms’ revenues flowing from India.
With rising wages and the dollars decreasing value against the rupee, Indian outsourcing providers are striving for an optimal mix of onshore and offshore operations that please clients and drives more business to them.
According to the Black Book, industries that have the most aggressive strategic sourcing plans to expand initiatives in 2008-2009 include banking, investment management, insurance, legal, supply chain, logistics and transportation, healthcare, news and media. In the next 12 months function that support rapid organizational business transformations like procurement, spend management, payables, financial accounting and compliance, IT services, legal services, BPO, KPO, document services, back office and general administration, engineering services and HR outsourcing will see maximum expansion.
After pricing the most important supplier features that influence vendor selection include client-centric culture, cultural alignment, onshore/ offshore balance, vertical expertise, innovative business models and a global presence. Companies are expected to spend top dollar on realization full assessment, ITO consultation, technological transformation, process improvement, ERP implementations, legacy modernization, quality initiatives and data center outsourcing.
The Black Book of Outsourcing survey also identified the 50 best-managed global outsourcing vendors. Satyam, TCS and Wipro are among this year’s top honored suppliers. Infosys toppled from the top fifty survey after four past consecutive appearances. Clients reported a noticeable shift from customer service to corporate revenue generation, and a corporate culture that has become disappointingly elitist. IBM Global, a former Black Book champion also tumbled this year as users expressed a palpable shift of customer service conduits to centers outside North America.
BPO giant Genpact was the only pure play BPO firm to feature in the top 10. Nearly 1,700 suppliers from 45 countries qualified for the 2008 Black Book 50, based on client nominations.
The full text of the 2008 State of the Outsourcing Industry Report and The Black Book of
Outsourcing rankings can be accessed via: