More trends in outsourcing to watch out for this 2011, from smaller deals to cloudsourcing!


Smaller, safer deals

2011 will be marked with smaller services deals, many of them by first-time clients who sat watching on the fringes in 2010. Providers will start with small-scale pilot projects as testing grounds for the partnership and once successful, push such customers to expand the scope of their relationships over time.

Trimming down fat deals

With a slow economic recovery, entrepreneurs and executives will continue to scour for savings in their existing outsourcing arrangements.

Outsourcing services customers may replace contractors from large sourcing providers with professionals from smaller services firms.

Standardization of services

Service providers will put renewed emphasis on internal initiatives to standardize their own offerings to leverage economies of scale and stabilize profit margins.There’ll be more process, technology, and location standardization including platform-based solutions.

Quality services at the right prices

Pounding on the table for price reduction is unlikely to be effective this year, customers seeking savings will have to bone up on delivery models, deal structures, and value drivers.

Services providers/ vendors will woo clients with quality performance, rather than a low bid.


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