Midst this global financial turmoil that is creating doubts for economic growth, businesses tend to explore more cost efficient ways to do business, outsource their non-core businesses to cut cost and become more competitive.

By outsourcing, enterprises leverage skilled workforce of external professional service providers to do tasks that should have been otherwise performed in-house. This enables them to focus on their core business and focus their resources on areas of core competence.

Business segments typically outsourced include, to name a few: information technology, human resources, accounting, call center, customer support, facilities management, market research and web presence development.

While this leads to layoffs and we have all heard of major ones recently; however, new opportunities for the outsourcing industry is looming.

Today, 95% of the world’s top 1,000 companies have adopted offshore service outsourcing strategies. A recent survey suggests that global expenditure on service outsourcing totaled US$120 billion.

So for outsourcing service providers it might be a good time to pitch in and for those losing their jobs, join outsourcing service providers or, even better, kick-start your own outsourcing business venture.

While in the short-term you might be pressured to lower your prices, shrink your margins and go for short-period contracts, it is a seed that your are strategically planting for the long run, as the economic climate improves and if your services are valued, significant growth could be your next best thing!

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Comments ( 3 )

In a crisis like this one, big companies are buying small ones, big banks are buying smaller ones, and so on…

For instance, I was working in the distribution business. 2 of the brands I used to manage where bought by the competition! And these 2 brands were not small ones and they were not in debt! they were rising in the market and that’s exactly why they were bought.

So assuming you have your own company, do you truly trust puting part of your business in the hands of an outsourcing firm, especially in times of crisis like this?

Before 2000, oursourcing was the key! it all went down after the 2000 IT burst…

Today, Microsoft and Google are very carefully and very slowly going in this direction for example. I am sure they will buy any new comer to this space in their race to managed services…

So is outsourcing the right strategy? I believe there is something in the middle, between outsroucing and in-house. The one that can come up with a creative/innovative approach to this space will be the next big shot!

what do you think? Let’s evaluate this idea, maybe we can crack it and actually develop it ;) I hope my boss doesn’t read this blog :) :)

Fuseless added these pithy words on Jan 07 09 at 10:32 pm

Irrespective of the M&A dynamics… large corporations (not all maybe) will tend to outsource, trends and figures show that, but definitely not the functions related to their core business.

Yes, Google (Cloud Computing), Amazon, IBM, Microsoft(Hosted Exchange), Salesforce.com and Yahoo are heavily exploring in this arena. This shows the potential in only one type of outsourcing, the Managed ICT Services.

Always ready to explore any business idea….

NAJI Y. CHAKHTOURA added these pithy words on Jan 09 09 at 8:07 am

I agree, many companies now are accepting outsourcing and it is even expanding until now. Outsourcing really of helps especially in this time of downturn. It saves money, time and it helps companies focus on their other important tasks.


Philam added these pithy words on Mar 16 10 at 8:58 am

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