Is outsourcing relevant in these changing times? Industry leaders addressed this question at OWS19 in Orlando. Outsourcing models of the past are already going through a change that will only intensify in the coming years, according to Jag Dalal, COP, Director of Thought Leadership, IAOP. Dalal provides his analysis on the two news articles below that address the future of outsourcing as technology and new approaches dramatically shift work efforts and processes.
This article quoting a report from the Deloitte Center for the Edge, Redefine Work: The untapped opportunity for expanding value. The Deloitte report advises companies to aggressively deploy automation technologies, not as a way of getting rid of employees or reskilling them to pursue other routine work, but with the specific intent to free them up to pursue new forms of work that will create more value for both the workers and the enterprise. This article says companies should focus their energies on redefining work at a much more fundamental level: by identifying and addressing unseen problems and opportunities.
While this article doesn’t directly address outsourcing, it nonetheless gives an insight into how businesses will change with automation. Companies will redefine work. Business processes as we have defined in the past will be streamlined and altered by RPA and other newer technologies.
Outsourcing customers will have to adapt their offerings to this new model. At the same time, leading providers will be taking the lead to help businesses redefine their work and, therefore, create a value for their services that is beyond “cost savings.” This is the new landscape of outsourcing as automation takes hold across businesses.
This article predicted the demand for contract IT talent will increase as more businesses take advantage of outsourcing instead of hiring specialists in-house. According to the author, 2019 looks promising for businesses as well as for software developers. These software outsourcing trends will bring about change globally and build trust and transparency between companies and their outsourcing partners. Businesses will be in search of software development partners who can offer them quality services that give them a competitive edge over others, the article stated.
Halfway through 2019, it is important to look at this article and the outsourcing trends it predicted for the current year. Most of the referenced items will likely be featured again for 2020 and beyond. The most noteworthy items again emphasize the importance of implementing new technologies (cloud, intelligent automation).
At the same time, the article points out that the traditional approaches of outsourcing may no longer be as relevant such as cost savings and traditional contract terms. These trends point to how the outsourcing landscape is shifting and if providers do not focus on them, they will no longer be relevant! Customers will drive their relevance.
Jag Dalal is IAOP’s Chief Advisor, Thought Leadership. He is a world-renowned authority and coveted speaker on management strategies, technology, and outsourcing. His deep experience as a business executive who contracted for these services as well as his leadership experience in establishing outsourcing practice for some of the world’s largest professional services companies; allow him to bring a unique perspective to consulting. JDalal Associates, LLC specializes in consulting in the field of Information Technology, Change strategies and Business Process outsourcing. His clients range from Fortune 100 companies to small “startup” companies from around the globe.