According to a new study by Duke University’s Offshoring Research Network and PricewaterhouseCoopers, that surveyed 514 outsourcing service providers in 50 countries, more countries are ramping up outsourcing markets, giving India and North America increased competition. The study reveals that outsourcing companies in North America and India – regions which for a long time have led the outsourcing market – are being challenged by competition from Latin America, Eastern Europe, and Asia, in service areas such as contact centers, business process outsourcing, and information technology outsourcing.
“Growing competition has transformed the outsourcing industry into a global race for market share,” says Charles Aird, Managing Director at PricewaterhouseCoopers. Typically, larger markets drive competition which spurs innovation and better, more cost-effective service. A large number of service providers expect to begin new software development and IT-service contracts over the next several years. Overall, 62 percent of service providers said they plan to expand the scale of their existing offerings, according to the survey. The survey also found that the economic crisis of 2009 reemphasized the importance of cost savings and efficiency improvement as the top strategic reasons for outsourcing, followed by access to qualified personnel.
The study results signal growth in the outsourcing market and illustrate that the outsourcing market continues to become a global market, not just an Indian and North American market.