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Outsourcing: The Next Ten Years
By: International Association of Outsourcing Professionals (IAOP)

Outsourcing is not only here to stay, its use is expected to increase dramatically in the years to come. As globalization inextricably links the world’s economies, few if any companies are going to be able to meet the challenges they face relying solely on their own internal resources. Working with partners, and getting the most out of those relationships, may be the most effective way for businesses to leverage what they’re best at and compete successfully in an increasingly diverse, dynamic, and competitive global marketplace.

But for outsourcing to continue to expand across the business as it is projected to, companies are going to want to see ever-better, more consistent results. They’ll want more from outsourcing than simple cost savings and contractually-based service levels. Outsourcing will need to produce a dynamic network of global partners able to adapt to changing situations. At the same time, the total cost of outsourcing will need to be driven down. Customers and providers alike are already beginning to struggle with the burden of managing increasingly complex outsourcing relationships across multiple organizations with multifaceted interfaces. Most importantly, for the amount of outsourcing to go up as anticipated, the outsourcing success rate will need to go up even faster.  If it doesn’t, then the weight of the sheer number of failed contracts could ultimately make outsourcing too expensive, at any price.

Addressing these challenges is going to require a new breed of outsourcing professionals. Professionals who can help their companies step up their game.  Professionals who can take the lead in senior manager discussions on topics like policy setting, opportunity identification, execution, governance, and quality assurance.  Professionals who have the skills, resources, and methodologies it takes to create superior results. These outsourcing professionals are needed not just in the organizations doing the outsourcing, but in the companies they outsource to, and in the consultancies they hire. 

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