Outsourcing moves to a new level as demands change

The maturing global sourcing scenario has presented suppliers with a dynamic marketplace based on changing buyers need and demands.

 These buyer demands lay extreme emphasis on the need for next generation characteristics in global services models, marked by globally diversified delivery footprint, industrialised delivery approach, and a global talent pool for growth, according to Everest, a global consulting and research firm.

As the outsourcing industry evolves into a more sophisticated space, service providers are looking for means of catering to the highly progressed buyer needs, which go beyond labour cost arbitrage. These buyer preferences include an increased geographic and services scope, sophisticated delivery requirements, and a more thoughtful approach towards a global sourcing portfolio centered around value maximiSation and risk management, according to a new Everest study, Global Sourcing 2.0 -- Evolving Global Delivery Imperatives for Outsourcing Service Providers.

Accordingly, service providers are re-evaluating their global delivery model designs to meet next-generation global sourcing challenges and opportunities. Locations portfolio, operating model and talent management emerge as key dimensions on which service providers are redesigning their delivery models. The Everest report analyzes key global delivery trends, next generation imperatives, and discusses their implications for buyers and service providers.

“The evolution of the supplier delivery models is evident; more so with the industry dynamics to remain high on growth requirements, even when faced with an extreme competitive environment. As the buyers’ sourcing strategies and engagements mature, service providers are re-thinking their global delivery models to meet evolving buyer requirements related to location risk diversification, location-agnostic & consistent delivery experience, faster and lower cost transitions and deep domain expertise,” said Amneet Singh, Vice President, Research, Everest Group

“We believe that a diversified and well-balanced location portfolio, industrialisation-driven operating model comprising global delivery suites and enabling infrastructure, and a rich and capable worldwide talent pool will be critical for suppliers to compete and be relevant in this next phase of global sourcing evolution," added, Amneet.