Eight years ago, outsourcing was merely a buzzword for “international trade services,” as American economist Gregory Mankiw had put it. With this in mind, the main industry buzzword at the time was “cost savings,” as business organizations started to increasingly outsource some of their services to be more cost-effective.

IT companies, in particular, were more sold on the idea. With foreign outsourcing reducing the cost of certain services due to the lower cost of labor in other countries, they were able to focus more on their core processes, which allowed for increased efficiency and production of better and more affordable services for their consumers.

Outsourcing soon became a global business trend in the recent decade. A 2003 study by the McKinsley Global Institute showed that outsourcing reduced the cost of IT and other services by as much as 60% in the United States. Further, business organizations outsourced IT jobs such as routine programming, data entry, and system-monitoring.

Today, the business industry, in general, had seen a visible shift in outsourcing consumption. From mostly a financial decision, business organizations are now turning to outsourcing services as an integral part of their business strategy.

Aside from increasing efficiency and reducing costs on certain services, business organizations are now outsourcing to find new ways to connect with customers and scale the business.

Another factor to increased outsourcing consumption is the emergence of new technologies. In a 2014 global survey conducted by Deloitte, recent developments in cloud computing and business process as a service (BPAs) are also driving growth in the outsourcing landscape.

Many outsourcing services also now offer robust cloud software-as-a-service (SaaS), infrastructure-as-a-service (ISaaS) cloud computing services, and public cloud platforms to their clients.

As business organizations adopt more recent developments and innovations, the outsourcing industry had also shifted to new buzzwords that accurately reflect the evolving role of IT in core business processes. From cost reduction to agility, the industry is now looking at outsourcing beyond the means of saving money, but also to help them sustain the market supply and demand.

According to Nearshore Americas, here are the 2016 buzzwords that would help you catch up on the current outsourcing trends.

  • Agility – To move more quickly, fail fast, and make better, timelier decisions.
  • Faster time to market – To prioritize the right things and release new products and offerings to the market and to internal users on a daily or weekly basis; to respond faster to market conditions.
  • Product and Platforms – To shift from maintaining applications to developing new products and platforms.
  • New market opportunities – To know how to take advantage of the opportunities of the digital market to transition to the as-a-service economy; to know which markets to go after; to monetize current data assets, and to know which services will enable an “Uberizaton” of the industry.
  • Customer-centricity – To put the customer at the center of the digital agenda and identify the appropriate digital backbone components, customer insights, and customer engagement platforms to be successful.
  • Hybrid IT – To leverage the public cloud, expand existing private cloud, maintain security, and build the enterprise of the future all at the same time.

By having knowledge on these buzzwords, you can now focus more clearly on where you should place your priorities in your outsourcing strategy for the year whether on the opportunities of the digital market, on customer-centricity, and on hybrid IT.

On top of it all, agility – in this case, the ability to adapt quickly to the rapidly changing ecosystem of the digital arena – should guide you in your business goals.

Staying on top of your game in this digital age may not be an entirely feat but with the right outsourcing provider and a clear strategic partnership to become more buzzwords-compliant, it’s not exactly an unattainable goal either.

Author: Outsourcing Insider

Outsourcing Insider consists of a team of regular blog contributors who writes topic about outsourcing and its relation to other industries like social media, finance, healthcare, sales and marketing, contact centers, and data and research.