More small vendors are entering the outsourcing business, outsourcers hope to sell more to a rising China and are increasingly concerned about being seen as socially responsible, according to a survey of about one hundred vendors by Globalization Today, the publication of the International Association of Outsourcing Professionals (IAOP).
The survey also showed that the vendors see technology, government, health care, financial services and the services industry overall as the outsourcing markets primed for the most growth.
Companies with less than $10 million made up 32% of the service provider respondents, followed by 21% who had revenue of $5 billion or more and mid-range firms with revenue of $100-500 million coming in third, at 17% of respondents. Regardless of size, close to 60% reported having been in the outsourcing market for ten years or more.
With its rapid economic growth, China loomed large in the plans of outsourcers surveyed. While it came in eighth in the list of regions in which outsourcers currently operate, it jumped to number two (after the United States) when the outsourcers were asked which areas they planned to expand into most aggressively in the next year. Not surprisingly, China came in first at 37% when respondents) were asked which regions they expect to see the most growth as outsourcing markets. India, South America and Southeast Asia occupied spots three to five in the list of planned expansion areas.
Outsourcing of technology services was the top pick for the service offering that will see the most growth, cited by 22% of respondents, followed by health care at 19%, the services industry at 15% and financial services and government tied with 11% of responses.
Some 93% of respondents said corporate social responsibility (CSR) is either a “very” or “somewhat” important components of its outsourcing offerings, a possible attempt to blunt criticism outsourcing costs jobs in more developed countries. However, a resounding 77% of respondents said they did not expect “the political climate or proposed anti-outsourcing legislation” to hurt their businesses.