In less than 10 years, the minor offshore outsourcing industry has become a mature industry, and there are still lot of opportunities and changes on the way ahead. The following are the five predictions about offshore outsourcing in 2008.
1. The companies resorting to offshore outsourcing will put more time and effort to ensure the smooth progress of the project. The wrong software coding, communications failures and frequent staff turnover, etc., are the frequent problems in offshore outsourcing. However, it is not bad enough to let enterprises completely abandon offshore outsourcing for the human cost compression brought about definitely fits their appetite. However, these problems still call businesses¡¯ great attention. They prefer to be more cautious in the outsourcing business, and has strengthened cooperative relations with overseas suppliers.
2. An increasing number of outsourcing businesses would be drained away to Latin America, China, Eastern Europe and other areas featured with cheap labors, while India will face the issues of tight IT human resources. India's service providers said they were trying to resolve this problem. In order to reserve talents, they go to absurd lengths, including project to reeducate students graduating from schools of science which can train the fresh graduates into IT technical personnel. They also went to India's vast rural areas to find talents. This sounds like they are at the end of the rope. India's problem of talent shortage can not be solved in a short time.
3. India IT staff salary will continue to maintain an annual growth rate of double-digit which could be higher than the 15% claimed by India service providers. However, India technical personnel cost will still attract a large number of American companies.
4. For the companies from the United States, to outsource telephone call center to India is out of the date. First of all, the customers' patience has limits, particularly when the customers complain about products or question billing problems to service representatives on the telephone. When a tiny bit of language barrier occurs, customers would demand "to see your manager" or e-mail the complaints. In addition, the time difference between India and the United States causes often staff change, for service representatives in India providing services to customers in the United States are working at night. Even many executives sent to India admit that call center business in India is no more profitable. In order to serve customers who speak English, some American companies have begun hire large number of customer telephone service staffs from the local community and the lower-income rural areas in Canada.
5. If the US economy presents signs of a recession in the next yea, offshore outsourcing will immediately become a notable topic in the presidential election. Currently, the unemployment rate in the IT industry of the US is still relatively normal, probably stabilize at around 2 percent, and many network developers are still the best-selling technical personnel. Nevertheless the unemployment rate will climb as the economy enters recession. At that time, presidential candidates will have to show their clear-cut stand on offshore outsourcing.
