Navigating the new outsourcing relationship

A new report found that 31% of IT services in the U.S were outsourced in 2017. The outlook for IT outsourcing is mixed, though, as Brexit seems set to shake up traditional notions of outsourcing and across the pond, Trump’s legislative changes pose their own challenges for an industry that has matured over the last 30 years. Despite this, though, outsourcing remains a value proposition that is attractive to most businesses. The format of that outsourcing is changing, however, and there are a number of opportunities for the industry as a result.


The current state of global outsourcing

In the UK and Europe, the specter of Brexit looms large in the minds of many, but it is likely to mean a growth in outsourcing, according to Keshav Murugesh, CEO at WNS. He says: “Breaking away from the EU will likely make it more expensive for UK companies to afford to recruit top quality staff – whether that’s through British talent becoming more expensive or the need to sponsor the working permits of EU citizens – so outsourcing will become a very viable option.”

Murugesh adds that, for a while now, outsourcing might have been synonymous with cost-cutting, but as British companies look to use the best talent from foreign shores, it is going to be a lifeline for business leaders wanting to maintain their access to a broad pool of flexible and highly skilled talent at a time when it is most needed. “And the thing about outsourcing companies is, they’re built to be comfortable with change. They don’t get fazed by it and remain robust, agile and buoyant no matter what situation is passed their way,” he says.

“Once the dust settles on the decision, there’s going to be increased competition over contracts and trade agreements. Companies across the UK and Europe will have to drive more efficiencies and compete to secure contracts within new territories. While there is uncertainty about what Brexit means for them in the short run, they remain comfortable about their businesses long term and their plans for outsourcing.”

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Bianca Wright

Bianca Wright is a UK-based freelance business and technology writer, who has written for publications in the UK, the US, Australia and South Africa. She holds an MPhil in science and technology journalism and a DPhil in Media Studies.

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