Outsourcing companies, particularly in India, are in the process of expanding their verticals to accommodate the changes in the market. The financial services and IT services are two of the most common areas in which outsourcing companies are now focusing; however, there is one area that Indian companies have been slow to tap and that is healthcare outsourcing. Healthcare outsourcing, such as medical billing and medical coding, is an area that is expanding rapidly.

Driven by healthcare reform that is sweeping the nation with mixed results, many outsourcing companies are employing different strategies that will place them in an advantageous position in the market, considering the increasing competition in healthcare related outsourcing services such as electronic health records, or automation of medical billing services from many global companies.

The outsourcing industry is ever volatile and can be subject to the political and economic whims that threaten a country. While sometimes unrest in a country may have little effect on a call center services outsourcing hub, as when unrest in the Philippines made headlines last year and its current state now, it can also still have a negative effect on outsourcing; with Egypt’s unrest and uncertainties, its plans to emerge as a sought after call center hub may have now been threatened.

It may not be as big as the other industries falling under outsourcing, but back office outsourcing is as important as the more popular ones such as contact center outsourcing, finance and accounting and research outsourcing. Outsourcing back office solutions such as web data entry may not directly affect a company’s operations but it is seen to be an important factor in hastening business processes.

The United States Agency for International Affairs or USAID, in a controversial move, has decided to fund the development of Sri Lanka’s, as well as Armenia’s offshore outsourcing industry.

Expectations were high for the end of quarter results of India’s number two outsourcer, Infosys (NASDAQ:INFY). As the first of its peers to release quarterly results, the outsourcing company is responsible for setting the tone for India’s outsourcing sector. It was therefore a big disappointment when Infosys announced a 2.6% drop in profit for the period of April to June 2010.

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.