Outsourcing can be viewed as something that is quite similar to a weight loss program. The connection between these two things may be entirely ambiguous, but believe it or not, there are similarities, especially when it comes to the reasons that drive companies to outsource. It is often that companies seek outsourcing for the cheap operational costs that is being offered. Quite similar as to how people flock to a particular weight loss program just because it offers the public a guarantee that it will shed off pounds quickly. But what people do not see is that this should not be the only factor that they will consider when looking for a program. Exactly like outsourcing, where most companies are too focused on the promises of outsourcing to lessen their costs, when they should also be looking at other things such as the efforts that they are to exert and the time they are to allot when they conduct outsourcing. A company must also look into whether the outsourcing solutions the provider offers are what your company really needs.

The year 2010 is almost at an end and prospects for the outsourcing industry still remain strong, especially in sectors such as IT and healthcare, specifically medical billing outsourcing and medical coding outsourcing.  In preparation for the year end and the coming year, many companies have been finalizing end-of-year deals, closing acquisitions, and pushing through expansion plans in a rush to end 2010 right, as well as start 2011 in a better shape than the past year.

The outsourcing industry has been defined just as much by acquisitions, as much as it has been defined by mega deals: think Xerox (NYSE:XRX) and Affiliated Computer Services. This November, several companies have announced acquisitions of other firms in a bid to redefine their services, and expand their business, and perhaps to give rise to the next Xerox-ACS caliber acquisition, within different industries including legal process outsourcing, IT outsourcing and call center outsourcing.

With the United States market still in slump, businesses project difficulties in profit increase in the next 7 years. Job cuts continue in the US and the rate of job creation of 25 per year is not sufficient to offset job losses in the next 5 years. On the other side of the world, Indian outsourcing firms show an opposite trend. Global IT service providers such as Infosys which provides technical consulting, design and development of business solutions have been aggressively increasing their workforce. Last week, the company reported that in the second quarter it has hired 6,069 people offsetting the 4,521 employees it laid off in the same quarter. Tata Consultancy Service is also bullishly hiring with plans of hiring 25,000 people worldwide for this year 2009 and 90% coming from India. Also part of the bandwagon is Wipro Technologies. In October 15 Wipro CEO Azim Premji said that the company is planning to hire about 500 local employees for a new service centre by Jun 2010. Manpower India Director Cherian Kuruvila also highlighted this hiring trend by Indian outsourcing firms saying, “Companies are expected to build a talent pool for upcoming projects as green shoots are visible”.