Trends in Offshore Outsoucing 2007

Outsourcing is a rapidly growing phenomenon among primarily US and European companies to offshore work to third party vendors at highly reduced costs. The intention is to take benefit of the lower wages & costs in countries like China, India, Philippines & Russia. Offshore outsourcing ranges from contract manufacturing, IT, Software Development, Manpower Training, etc. The choice of a nation for offshoring depends on factors like language & education of the local work force, transportation systems. For Example countries like India & china, are educating high numbers of skilled engineers & scientists from their universities -thus enabling these nations to attract massive engineering, research & development contracts.

Today in the IT world, offshoring has proved a boon not only for the job seekers but the also for the many offshore outsourcing companies. As companies strive for ever more extreme competitive advantage in today's economy, more companies in developed countries are looking for wider markets to expand their business & the same trend can be followed in 2007.As the world's largest software industry, US continues to outsource its software development globally .It has become the largest software outsourcing client in the world. Outsourcing software development has become a prominent business practice

According to the news release the Business Process Outsourcing (BPO) sector in India has seen a down fall in its business in first quarter of 2007.The number of contracts signed in 2007 are less as compared to that of the first quarter of 2002 .The trend is more likely to be inclined towards Knowledge Process outsourcing (KPO) now as companies have started graduating from BPO towards KPO Hewitt Associates is the best example in this regard. Although it’s a US based company it growing its roots in India as well very quickly o take advantage of the developing KPO scenario.

In 2007, companies will look for enhancing the security and confidentiality of data. Services like outsourced payroll management, accounts management, client information management like credit card processing, insurance claim processing etc. need to be handle with tight security by capable outsourcing service providers. This will help in achieving better client satisfaction.

Being fluent in English doesn’t take the business around the globe. For better results, fluency in other languages & technologies is going to play a vital role in offshore outsourcing to obtain more profits. Outsourcing from non English speaking nations like Germany, Mexico, etc. has huge untapped potential.