| ity | | | | advancements. |
| Year 2008 saw the economy come crashing down | | | | Rationalization of Portfolios |
| and businesses squandering for relief. And if industry | | | | One of the most popular trends in the application |
| experts are to be believed, year 2009 is going to be | | | | outsourcing market has been that of portfolio |
| no better. Year 2008 saw the economy come | | | | rationalization. Clients review the portfolios of their |
| crashing down and businesses squandering for relief. | | | | outsourcing service providers and choose the best out |
| And if industry experts are to be believed, year 2009 | | | | of the lot. In a bid to get the best of services, they |
| is going to be no better. The only solace is that | | | | may even mix and match a combination of companies, |
| companies and organizations understand the situation | | | | countries and models. This is an extremely critical |
| and are taking adequate measures to survive through | | | | procedure because one has to streamline all the |
| the calamity. | | | | components of the combination in order to get |
| One of the prime agendas of businesses across the | | | | effective deliverables. |
| world is to employ the practices of offshore | | | | However, it is important to understand that there are |
| outsourcing. Because of the uncertain situations, | | | | few differentiators between the various service |
| offshore outsourcing can be an efficient methodology | | | | providers and hence was the concept of portfolio |
| to cut costs and save money, initiate new business | | | | rationalization incepted. There is a plethora of company |
| ventures and improve the quality of business | | | | and country choices available and there is a whole lot |
| processes. Here are some of the potential outsourcing | | | | of readily accessible information on the Internet. The |
| trends you may see this year. | | | | choice of the country and the service provider |
| Reviewed Outsourcing Deals | | | | depends on the size of the company and the |
| At present, outsourcing deals fail to realize their full | | | | outsourcing deal. Generally, a multi-vendor approach |
| efficiency because they are more based on people | | | | works best. |
| and less on the actual demand. Companies that hire | | | | Cost Cutting |
| outsourcing service providers negotiate a specific rate | | | | Outsourcing clients will make all possible effort to cut |
| and determine a fixed duration for the contract. | | | | costs in their investment area. This is a natural |
| However, the cost figure is always based on the | | | | consequence of the grim economic climate and |
| number of people doing the job and the time they | | | | subsequent credit crunch. The clients may look to |
| spend on the same. | | | | offshore more work to service providers in a bid to |
| The deal structure of outsourcing contracts have been | | | | cut costs. However, they will seek the best services |
| traditionally based on the employee rental model, | | | | for the lease possible costs. This could lead to severe |
| wherein clients pay for the number of people at the | | | | competition among service providers to secure |
| task irrespective of the relevancy of work done. | | | | outsourcing contracts. Moreover, emphasis would be |
| Outsourcing companies have evolved with time but | | | | on quality of deliverables, speedy delivery and |
| the basic deal structure remains the same. | | | | additional benefits at the lowest possible investments. |
| Outsourcing contracts that rely on people-based model | | | | Also, with the value of Rupee depreciating against the |
| seldom offer any incentives to improve the productivity | | | | value of dollar, the cost escalation is turning to India. |
| or efficiency. On the other hand, demand based | | | | This would add on to the fierce competitiveness of the |
| outsourcing contracts offer tremendous potential for | | | | industry. |