LOOK: Take note of these trends for outsourcing companies

Now is the perfect time to be considering outsourcing opportunities. But before you jump into hiring offshore staff, take a few minutes with us to learn the current trends for outsourcing companies.

CIO posted what to expect this year  – such as the issues with security, business expansion opportunities, and how outsourcing is affecting the efficiency of our daily work. Let’s check if that is what has happened in the past 3 quarters of this year.

 

  1. Security takes center stage

Security is top of mind from the boardroom to the lunch room, and it will influence outsourcing strategies in 2016. “Indeed, security risk is poised to increase as telematics and the Internet of Things (IoT) becomes more prevalent in consumer and commercial products”, says Paul Roy, partner in the business and technology sourcing practice of Mayer Brown. “Increasing numbers of threat actors will use increasingly creative ways to exploit weaknesses, often with devastating effect. Regulators will exact increasingly large fines for poor security. Service providers have often been the weakest link in a company’s security and will need to find better ways to address that concern.”

 

  1. Offshore captives come back

Companies will leverage the experience they have gained in process maturity as a result of working with outsourced offshore teams and set up their own shops, predicts Randy Vetter, senior director with outsourcing consultancy Alsbridge. “The objective of this approach will be to reduce costs by taking away the provider’s margin, as well as increase flexibility by removing contractual constraints.” Companies are likely to get smarter about insourcing in general, says Alsbridge director Mary Patry. “Rather than insourcing as a knee-jerk reaction to a bad outsourcing relationship and repeating past mistakes, clients will benefit from lessons learned and be smarter about what and how they repatriate.”

 

  1. Production workloads—and more—hit the cloud

There’s no denying Amazon’s first mover advantage with the public cloud. And IT shops who reached for the cloud first did so with non-critical systems. But in 2016, we’ll see more production workloads move to the cloud—and not just AWS, says Lynn LeBlanc, CEO of HotLink. “No CIO wants to cast all bets on just one cloud provider,” LeBlanc says. “IT pros recognize that the future of their data centers will embody many platforms, so we’ll start to see more CIOs experiment with other major public cloud options, such as Microsoft Azure and Google Cloud Platform.”

 

  1. VMOs go mainstream

Multi-sourcing has multiplied the vendor management workload. “As clients look for ways to address the challenges of overseeing increasingly complex multi-vendor service delivery models, the [vendor management office] will establish itself as a way to provide a high-level, enterprise-wide view while at the same time managing day-to-day operational details and multiple touch points between different providers in the service delivery chain,” says Mike Slavin, Alsbridge managing director.

 

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Which of these forecasted trends have you heard about so far? Here at BMG Outsourcing, we have become a highly regarded outsourcing provider. Our team of accounting experts is always there to assist you with your ever-changing needs.

Our goal is to become one of the most respected outsourcing companies by giving you the most effective accounting strategies.

Let’s talk business! Email us at info@beale.net.au to learn more about our services