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Outsourcing Trends That Deserve Attention

There is no denying that outsourcing is growing and growing in popularity. More businesses are going down this route because they recognise just how important it is to capitalise on specialist experience and run their business as efficiently as possible. After all, while attempting to handle everything in-house is admirable, it is simply not feasible in a lot of cases today. You will lose focus and experience a burnout.

However, one thing you should know about outsourcing is that it never remains stagnant. You still need to keep abreast of what is going on in the sector. With every year that passes, new trends emerge in the marketplace. This is especially the case when it comes to outsourcing; an industry that is progressing at a rapid pace. Keeping that in mind, let’s take a look at some of the most crucial outsourcing trends that deserve our attention as we move towards 2019…

Hybrid Offshoring

Hybrid models have been gaining more and more attention as the year progresses. These models combine both insourced and outsourced offshore services in order to reap maximum efficiency. Outsourcing and insourcing were once seen as competitive, yet now they are being viewed as complementary in order to achieve the perfect balance of the most cost-effective services and the best talent.

Inter-Provider Cooperation

A second trend that is fast emerging is the cooperation between numerous service providers when working on a project. This is due to the increasing number of cooperation agreements that have been put in place, contractually obliging service providers to cooperate at an operational level. It is important to note that this will only prove effective in certain scenarios. To assign virtual services across a number of different providers would only create one big mess. It only works when the service can be broken down into more specialist domains for a greater picture overall.

Results Based Pricing Models

We are seeing an increasing number of companies implementing a results-based pricing model when it comes to paying their service provider. This is to diminish risk, as the service provider will be paid based on the successfulness of the work they supply. Nonetheless, this pricing model will not work for all projects. The task at hand needs to be easily measurable by a set of defined targets that are agreed upon by both parties.

Machine Automation

One emerging trend is the growth of machine use in outsourcing. Robot-like technologies are being developed and implemented in order to automate various tasks that are presently being performed by full-time employees of the service provider the work is being outsourced to. In fact, automation generally will be on the rise, as it offers CIOs the chance to lower their operating costs.


Multi-sourcing is a trend that has continued throughout the year. We are seeing big deals getting smaller, whilst small deals are getting larger. In regards to the latter, customers are looking for a greater degree of leverage with their vendors, and so small deals are being turned into mid-size ones. Nonetheless, at the same time, bigger deals are being disaggregated and resourced into littler sections.

Progressions in the Cloud

Last but not least, there have been some developments in regards to cloud computing this year. There is no denying the longevity of this solution, yet so far there have been a few mistakes made by early adopters and businesses have had difficulty managing cloud computing effectively. Because of this, a marketplace that is more educated and cautious has emerged, and service providers have had to adjust their offerings accordingly. This is especially the case when a lot of companies are introducing metrics to quantify their return on investment.

So there you have it – an insight into some of the most critical outsourcing trends that have made an impact in 2018 so far and will continue to make an impact and develop as we move into 2019. From results based pricing models to inter-provider cooperation, there have been many developments in the world of outsourcing throughout the year already. Of course, you cannot adopt all of the trends and techniques that have been mentioned, but it is important to keep your finger on the pulse.

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