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Outsourcing Trends in 2014

This blog post from KMC shares some of the top, upcoming trends to look out for this year in the Information Technology – Business Process Outsourcing industry. And, with the Philippines (Manila to be specific) as one of the frontrunners in global outsourcing leaders, executives and company heads should take notice of this list.

Vertical integration and Mid-Market Opportunities

More clients are looking for service providers that offer a complete package to reduce costs and turnaround time and the market of outsourcing and offshoring within companies and other multinational firms is quickly becoming saturated, and outsourcing and offshoring services providers should start focusing on SMEs (Small and Medium Enterprises).

It is important that any IT-BPO provider offer a sort of “one-stop shop” with the entire package of services needed to fully satisfy any business client. Rather than hiring different and separate firms, it will likely reduce costs, effort and turnaround time if there is only one unified provider of such. In the case of the market, service providers should pay more attention on SMEs and acclimate themselves in certain innovations such as new processes for the organization’s benefit.

Lower Cost Consulting and IT Infrastructure

To respond to the requirements of the midmarket BPO sector, consultants are expected to create a lower cost consulting model. This model is designed for SME clients who wish to retain relationships but with less intense financial commitments. Competition is expected to become tighter among IT-BPO service providers, and winning the contract or account can boil down to a facility or company's IT infrastructure and capabilities.   

It is especially important to focus more on the needs of clients, particularly from the small to mid-market range. These companies look to cut their expenses more and IT-BPO providers need to adjust. All the while, these same organizations need to boost their IT capabilities by improving infrastructure, investing more on latest equipment and developing improved workflows and processes necessary to guarantee that the provider offers the best value.

Read the Original Blog Post:

About Kristian Dayrit

Kristian Dayrit was the Associate Editor and Content Writer for AITS Philippines. He has edited and wrote various published works, articles, newsletters and such since 2007.

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