For the past two years, all the talk in the outsourcing sector has been about cost saving, and all the projects have been about restructuring or re negotiating outsourcing contracts in order to deliver value for money. That is changing feature as organizations are beginning to expect more from an outsourcing than simply cost cutting. A recent global study about companies seeking innovation in business processing outsourcing shows that 43% of executives in outsourcing customers view innovation as a critical element of BPO. It is also true to say that cost cutting and re negotiation of the cost baseline of an outsourcing project can only save cost once: successful innovation can create a multiplier effect which can lead to increased savings going forward. So it makes sense that executives still see innovation as something that is important in their outsourcing relationship.

But outsourcing very rarely leads to innovation unless it is either the central purpose of a project or the subject of a specific targeted governance mechanism. The lower down the list of priorities innovation sits; the less likely it is actually to appear. A lowest cost mentality will never deliver innovation. Over the next 12 months, companies will again grapple with issues around service provider selection, contracting for innovation, and paying for innovation. Ultimately, innovation is not something that can be measured like a service level. We can say that it needs to be handled sensitively and in a collaborative manner if it is going to happen at all.

Web based solutions will continue to grow in importance in the outsourcing market. SZI Outsourcing is a web solution provider. This company is situated in Kolkata and working as an outsourcing company from 2010. We make a study on recent trends in outsourcing process. The study includes the reason for making profit and loss. The journey to quality will continue. Stronger providers are favored and counterparty risk is still an issue. Bigger service providers will continue to buy niche providers. However, that does not necessarily mean that well structured niche suppliers with good market offerings will suffer, and the flight to quality will mean opportunities for both large and small providers. One of the dominant features of the outsourcing market over the last 12 to 15 months has been the emphasis on cost above all else. We have always believed that cost was and remains the primary driver in most outsourcing transactions. For more details visit: www.szioutsourcing.com