The tremendous pricing pressure on outsourcing deals renegotiated in 2008-09 will lead some companies to realize that deep pricing cuts have damaged relationships and the business value that outsourcing brings. Providers and customers will re-negotiate contracts more collaboratively to regain innovation and flexibility, and enhance total value.
'As we put the worst of the economic downturn behind us and begin to move back to normal,' companies will be needing agility and innovation in their businesses,' Ertel said. 'Outsourcing service providers that haven't re-negotiated contracts also will be more proactive to improve and renew relationships with customers.'
Companies will return to using outsourcing to recapture innovation and provide flexibility in 2010 versus simply saving money, but global economic uncertainty will continue to impact the industry, according to year-end predictions by the International Association of Outsourcing Professionals (IAOP).
“Coming off a year of tremendous pressure, the outsourcing industry is expected to enter the next decade with positive signs of rebounding,” said IAOP Chairman Michael Corbett. “As companies recover from these tough economic times, outsourcing will enable them to emerge as leaders in the new global economy.”
Here are the top 10 trends to watch for in 2010 from IAOP with insights from top industry leaders.