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IAOP Releases Annual Outsourcing Trends to Watch in 2013

Global Economic, Political and Social Forces Will Impact Outsourcing in the Coming Year

POUGHKEEPSIE, NY -- (Marketwire) -- 11/05/12 -- The New Year and its uncertain climate will lead to more caution in outsourcing but also potentially closer and more creative relationships and opportunities, according to the sixth annual trend predictions released today by the International Association of Outsourcing Professionals® (IAOP®).

"While we have seen the global economy and U.S. presidential elections impact global sourcing decisions in 2012, we are optimistic about the continued growth in the industry in the coming year and see strong opportunities in different regions of the world," said Debi Hamill, CEO of IAOP.

According to predictions gathered by IAOP's PULSE team from industry thought leaders, here is how outsourcing is expected to play out around the world: Nearshore forecast is poised for explosion; Offshore forecast has a weaker outlook; Onshore forecast is a positive vision while Emerging Nations will see a local market growth.

IAOP predicts there will also be many bright spots, which include: impact sourcing and corporate social responsibility (CSR), professional certifications, nearshore and onshore destinations, technology solutions, and services that control risk and protect data.

Here's what in the forecast:

Top 10 Outsourcing Trends for 2013

Handling Risk - Government regulations will continue to be enforced and companies will need to adapt and find better, more efficient ways to handle compliance, legal and financial risk.

Governance Grows - Governance will be more important than ever to predict against risks. Expect to see many more different sourcing arrangements than in the past.

Real Deal Partnerships - Buyers and sellers will move beyond talking about partnering and actually achieve it.

Social Responsibility & Impacts - Corporate social responsibility -- including fair wages and labor practices, environmental impact, local community support and sustainability -- will move to the forefront of engagements between providers and customers.

Professional Certification and Talent - Having employees with the right credentials, expertise and talents will continue to be important in the coming year.

Data Security - Security of data as well as availability of systems and networks will remain a major issue for customers and providers.

Technology - Trends in technology, including managing data, social media and cloud computing, will drive outsourcing growth in various segments.

Alternative Energy - Driven by rising costs and service interruptions, providers with large data and telecommunications centers may look to other energy sources, such as solar or wind.

"Rising utility costs, interruption of service due to natural or man-made events as well as environmental impact of accessing natural resources will drive outsourcing providers to consider alternate sources for their energy consumption," predicts Jag Dalal, COP and IAOP's Managing Director of Thought Leadership.

Analytics - Analytics will be the key revenue driver for rapidly commoditizing BPO businesses.

Rural Sourcing - Outsourcing in U.S. state and local government will continue to accelerate given the continued sluggish economy and dwindling tax base, increasing demand for rural sourcing.

For the full report, read "Trends & Forecasts" in the Nov./Dec. issue of IAOP's PULSE magazine at www.IAOP.org/PULSE.

About IAOP
The International Association of Outsourcing Professionals® (IAOP®) is the global, standard-setting organization and advocate for the outsourcing profession. With more than 120,000 members and affiliates worldwide, IAOP helps companies increase their outsourcing success rate, improve their outsourcing ROI, and expand the opportunities for outsourcing across their businesses. Visit www.IAOP.org.

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Kate Tulloch-Hammond
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