Outsourcing is dynamic. It continues to grow and develop every time. Creating new future for the industry. For years now, companies have been moving production and services offshore it take advantage of lower production costs. However, recent development suggests that people outsource single service needs that are not part of the organization’s core business. With this they are staring to push outsourcing boundaries towards the core and advanced business areas that move into the idea generation and innovation.
Challenge internal limits
Pushing outsourcing boundaries that concentrates more on the core and advanced business areas requires changes. This may involve overcoming the structural constraints. Pushing internal limits without ceding control over the direction of the company. Service providers will have to come up with system wide perspectives. The companies that can identify new value-crating arrangements in business areas will have great advantage towards this year.
Idea generation and innovation
The idea generation refers to the process of creating, developing and communicating ideas which are abstract, concreate or visual. It includes constructing through ideas, innovating concepts, developing processes and eventually bringing the concept to reality. Innovation not only pushes creativity but also pushes companies to find better way in doing business. Companies will eventually need to keep with new realities. Most companies are not able to provide these services. Learning how to apply this will enable business to differentiate themselves and gain new competitive advantages.
Due to increasing technological sophistication, outsourcing will eventually crate new service areas. Creating new and varied market opportunities for both the customers and service providers. This will birth different specialized areas and push service providers to select among their stronger competencies and give more focus towards it. It will drive efficiently, quality and personalization of products and services.
The experience economy
The experience economy has been there for a while. We have been a part of it, whether we have realized its existence. It is an economy in which many goods or services are sold by emphasizing the effect they can have on people’s live. It has centered on the immaterial things, making business a “personal experience”. This shift will signify maintaining a great amount of focus on service design and user experience. A client centric approach that emphasizes on the emotional journey will be of essence. Although most don’t see this fit for all outsourced services. Still, it provides customers with the same fulfillment that will potentially drive economic gain.
This is not solely for the business and consumers but most importantly for the employees as well. New organizational wellness will likely be implemented. Service providers must be prepared to accommodate the demands and emerging services areas. This might involve new on-site professionals for human resources and new activities that will engage workers.