The following are the prediction for the IT outsourcing industry in 2008.
* Many new players will providers start innovating to expedite the growth of their outsource capabilities while the traditional player will struggle to the position due to increase in overhead and split in organization.
* The price competition will continue to increase due to rising in wages however the outsourcing companies will standardized technology, will improve operational scale and refine their delivery models.
* Eastern Europe outsourcing market will be one of the destination for European company and it will grow especially for local market supporting local European language.
* China will continue lag behind due to language barriers and intellectual property and privacy issue.
* Cost of labor in Asian countries will slightly increase.
* Many new hybrid models will emerge out with tailor made solution for outsourcing need like for example multiple-process outsourcing engagements will emerge out.
* Due to tight US & UK labor supply policy many US & UK based companies will frame their outsourcing strategy and Asian/European countries will continue as preferred place for outsourcing.
* Many new city will be developed for IT hub with more technological advancements & infrastructure with Conducive environment in many Asian countries.
* Outsourcing will face serious competitive pressures, however automotive, Insurance, pharmaceuticals, IT security functions and human resource & development will rise significantly.
Filed under: Outsourcing News
