2010 is right around the corner and executives are busy making plans for 2010 and worrying about how they will meet their reduced budgets while keeping their customers happy. Companies will continue to evaluate outsourcing options and the following three trends will be most visible:

Focus on Low cost and High Value

Every company in the US continues to face pressure to remain competitive and viable. Most IT budgets have been slashed down to the bare minimum. But the work still needs to be done. How else will the work be done unless companies find lower cost labor and service providers who can provide everything? So suppliers who offer lower cost solutions but with increased value in terms of lower risk or "more for less" will be the ones who really see their business grow.

More focus on Strategic Vendors

Most companies are probably looking at their vendor lists and thinking “how did we do business with 600 vendors?” Streamlining operations includes streamlined procurement processes and vendor lists. So 2010 will see companies moving to fewer Strategic Vendors who can outsource to their downstream vendors. (This is what General Motors did back in 2006 and saved millions.)

Movement towards Outsourced Procurement

As one of my earlier posts indicated, outsourced procurement is a trend whose time has come. By outsourcing procurement services, businesses will gain big returns from cost savings; buyers with better domain expertise; and improved processes.

2010 will hopefully bring a turnaround in the world economy. But even as the economy improves, companies will no longer repeat their mistake of remaining complacent. Better processes, lower costs, and better skilled employees; these will be the reason companies will choose one outsourcing provider over another