Outsourcing Trends

In an extensive outsourcing survey by Pricewaterhouse Coopers, respondents identified focus on core competencies and reduced operating costs as the main reasons for outsourcing. Demand for outsourcing services is increasing due to the following market trends:

  • Increased Focus on the Firmís Core Business
  • Increased Competitive Pressures and Decreasing Prices
  • Need for Global Capabilities
  • Rapid Incorporation of Advanced Technologies
  • Continuous Process Improvements
  • Need to Improve Customer Satisfaction
  • Mass Customization and Increased Complexity
  • Requirement for e-Commerce

In order to meet the needs of both traditional vendors and emerging e-Commerce vendors for the outsourcing of extended supply chain management processes, an outsource provider must be able to offer services in the following areas: e-Commerce support services, procurement, manufacturing, fulfillment, and customer relationship management. While many outsource providers offer one or more of these services, there are few providers that can offer all of these services on a globally integrated basis. Companies seeking to outsource a significant portion of their business processes require a provider that has the technological infrastructure and expertise to seamlessly integrate these complex business processes with their own operations. Also, because the outsource provider is often a direct link between two of the most valuable assets of a company, namely its products and its customers, the outsource provider must have the experience and expertise necessary to earn and maintain the trust of the company as a reliable and integral part of its supply chain.

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