The year is about to close and this could very well be the most interesting part of the year as predictions for the succeeding year are in abundance and this is the perfect time to see whether outsourcing predictions for the year 2011 did actually come true. Just around this time last year, Outsourcing Insider published a blog with the title “Outsourcing Sectors to Watch In 2011” where it points out that information technology and recruitment process outsourcing are the clusters that were identified to thrive this year. While on another note, the cluster of healthcare outsourcing companies were seen to maintain a stable position in the industry this year.

Finance and accounting processes may be regarded as an integral part of a company but it is also among the most tedious.  This is why companies are constantly looking for ways to make it more efficient and more manageable. Under the different finance and accounting processes, one that stands out is payroll outsourcing. This is the finance and accounting branch that is commonly outsourced by companies, as compared to others such as accounts receivables and accounts payables, because outsourcing this function often results in more efficient processes, reducing paperwork for companies.

In an industry like outsourcing, wherein there is a constant push towards development and expansion, mergers and acquisitions are commonplace.  Outsourcing companies acquire other companies in order to grow and expand into related business domains that they can integrate with their business, in the hopes that such actions would yield more advantages than disadvantages. In addition, companies acquire other companies in order to branch out their services and diversify their solutions so they can capitalize on a particular market, which are usually the ones that are booming.

Outsourcing solutions providers have maintained the interest of many professionals and experts on the industry primarily because of its unpredictable movements within the industry. A movement in an industry can be considered to be an indicator of growth, and it is most common that despite having a negative impression, it will lead to something positive for the industry.

TCS (NSE:TCS) CEO N. Chandrasekaran sounded optimistic when he said during an interview that TCS had not seen an impact from the Europe debt crisis among its clients. Particularly since the company’s multi-million dollar UK outsourcing contract with PADA appears to have been in jeopardy for quite some time.

IT outsourcing growth is on the rebound but it is unlikely that it will ever be the same again. After the big boom that the industry experienced a few years ago before the recession, analysts estimate that this is unlikely to happen again.

Following the UK elections and subsequently, the naming of the country’s new Prime Minister David Cameron and Chancellor George Osborne has pushed government outsourcing contracts in limbo, as companies anticipate the stance the new government will enforce.