Outsourcing is Here to Stay

In celebration of its fourth anniversary, the Dubai Outsourcing Zone (DOZ) released a report entailing a forecast of outsourcing's global market. According to the research, the estimate market value of this industry would go up to $ 479.3 billion by 2016, a significant increase from its worth at present which is $ 370 billion.The research which was also done in collaboration with Frost and Sullivan consulting agency and the global business research likewise revealed that the United Arab Emirates (UAE) and the countries in the Middle East and North Africa (MENA) region are ultimately becoming top global outsourcing destinations. Moreover, Dubai is increasingly becoming attractive to companies who are looking through shifting to this business approach. This is because of Dubai’s strategic location, one that offers easy access to countries in the Middle East, Asia and Africa. UAE is also known for a better life quality of its populace. Hence, workers attrition might not likely to take place.In terms of international compliance, MENA countries are also famous for passing higher qualifications. Another reason that Dubai is gradually gaining an unwavering status in outsourcing is the availability of professionals who are proficient in other foreign languages, allowing for multicultural individuals in the workforce.Despite this optimistic study, DOZ does not discount the fact that China and India still remains to be the leaders in outsourcing international companies’ business processes. Over the last five years, the outsourcing industry has experienced a significant boost in terms of its growth. Despite every contentions from economic and technology leaders like America and Europe on this emerging business trend, it continues to exhibit major growth, market value-wise. More and more small and big companies in the US and Europe are making important decisions in undertaking this cost-effective business measure.A lot of studies have been dedicated to discover the reasons of multinational companies to decide on transforming their business management framework to delegating their core and non-core functions to third party service providers. In a recent study done by Accenture (ACN), lower labor cost remains the top reason for these corporations to hand over their services to business processes service providers.Aside from the advantage of generating savings, outsourcing leads many US-based companies to transfer the delivery of their services to countries that offer unbeatable employment rates and higher productivity because of the benefits that it provides. The incessant inclination to adapt outsourcing as a key weapon in the global economic competition is the main factor that leads organizations to make changes in their practices. Amid the global financial crisis, outsourcing surely provided a beneficial business sense for these industry players.Outsourcing clients generally go the business outsourcing way to take advantage of the high-end technology and infrastructure in countries in greater Asia and Africa, and now Middle East. These countries also produce experts who are always abreast with the latest state-of-the-art information and telecommunications technology.The access to quality services, educated professionals, and latest technologies also created a change in the way outsourcing clients compensate outsourcing vendors. According to Lindsay McDonald, a consultant for Middle East and North Africa-Information and Communication Technologies, Frost & Sullivan, clients are now willing to spend more given a guarantee for high quality services. In line with this, governments of the leading outsourcing countries strive hard to develop sustainable development policies, one that is aligned with the demands of the growing outsourcing industry.