Outsourcing Trends: Growing Market Means Stiffer Competition

Competition in the outsourcing has become very stiff that countries of offshore outsourcing providers usually intervene to boost competitiveness.  There is a growing trend nowadays of foreign countries providing favorable business environments and incentives to outsourcing companies.  This is especially noticeable in the current efforts of new players such as China in creating an exclusive business hub dedicated to off-shoring companies servicing corporations of Western industrialized nations.  These economic and business zones have the most relaxed state regulations from labor management to almost free tax policies.  The trend of providing favorable business environments for outsourcing companies resulted to increased capabilities of countries challenging India s dominance of the outsourcing market.

On the other hand, India has been trailblazing new path for its outsourcing efforts.  Indian service providers have developed what they call near-shoring operations.  This is a counter measure which will try to attract investors by providing the facilities of outsourcing companies near the parent company.  Near-shoring has been developed by European companies specifically capture the large and cheap labor pool of former Eastern European states.  India made it a strategy to generate more clients for its outsourcing companies.  Near-shore facilities, will significantly cut the parent companies expenditures in terms of management cooperation, product deliveries, and service provision. 

The outsourcing industry is growing from year to year.  It has become a major industry in some countries that fuel local economies and market.  The current trend now is increasing innovation in service deliveries to capture more companies that will outsource their business operations.