In the post sub-prime era End-user (Client) Organisations are under increasing pressure to release capital from their internal operations and to leverage existing investments. This means that the imperative for sourcing – outsourcing, offshoring, centres of excellence and shared services – has never been greater. New operating models are being adopted and global integration of services is on the horizon for many organisations.

The supplier market has needed to evolve - in 2002 the ‘Big 6’ held an overall market share of 88% for contracts over $1billion. However, by 2007, this was reduced to 40% market share due to new entrants to the market at both global and regional levels. In 2007, the outsourcing industry was estimated at $450billion.

Due to this increased competition, service providers need to ensure that they grow their client lists through good working relationships. They have to evolve away from pure-play contract compliance.

It is not just the current crop of competition that BPO and IT solutions providers need to keep an eye on. Investment Promotion Agencies (IPAs) from different geographic regions are becoming more competitive by offering sourcing alternatives for shared services and by promoting local outsourcing partners. New locations are more widely accessible than ever before.

Organisations are now also viewing their internal shared services centres in different ways, and this has given rise to Centres of Excellence and Knowledge
Processing Outsourcing which is further segmenting demand into more precise offerings.

The search for solutions

From an End-User perspective being aware of the breadth of services and options available is critical to avoid expensive and time-consuming issues later.
From a Service Provider and IPA perspective promoting and maintaining your market share is now integral to ensuring continued growth.
There is no better way to improve your relationship and profile between Client organisations and service providers than meeting them face-to-face to discuss
future opportunities.

We look forward to welcoming you at the International Outsourcing Forum
in 2009.

Rav Bains, Principal, Sourcing Advisory