In a previous blog post, based on TEC’s outsourcing selection criteria, I summarized 6 types of experiences that a buyer should consider when choosing the best provider for application software outsourcing projects. Since then, my interest has been raised to the level of taking a further look into outsourcing buyers’ requirements for their potential providers’ expertise in a real selection process. Thanks to TEC’s Outsourcing Evaluation Center, users are able to identify their high-level requirements, run outsourcing service comparisons, and receive a short list of qualified providers. I was also able to look at the statistics of these high-level requirements and found out something that might be interesting for both outsourcing buyers and providers.
About the Data
To come up with a short list of the best-fit providers, users need to answer 14 critical questions in TEC’s Outsourcing Evaluation Center pre-screen questionnaire. Amongst these, four questions are related to the providers’ expertise. These areas of expertise are
Of course, TEC’s selection service goes far beyond generating a short list of qualified providers, but the short-listing process is informative enough to provide me with a general understanding of buyer requirements of the above expertise areas.
The sample size of this data is also quite satisfying. There were 2,351, 3,619, and 6,299 comparison projects taking place in the application software outsourcing area in the years 2006, 2007, and 2008, respectively.
The following figures show outsourcing buyers’ requirements in the four expertise areas. In each chart, expertise options are displayed in a descending manner from left to right according to the frequency that they are selected by buyers in year 2008.
Figure 1. System development process expertise.
Figure 2. Application development expertise.
Figure 3. Top 10 domain expertise.
Figure 4. Top 10 technology expertise.
The Overall Trend
Since the four figures explicitly show the changes in expertise requirements over the three years, I’ll leave further analysis to you. The only point I want to make is that application software outsourcing buyers are now more demanding than before in terms of what they expect regarding a provider’s expertise.
If you were not aware of this trend after your first glance at the figures above, roll back and have a second look at them. You will find that the height of most of the bars grows over time. Actually, I did some calculations to show the average numbers of selected options during the comparison projects. The result is that in 2006, an average buyer selects 3.7 options in the domain expertise area; this number increases to 4.2 and 4.4 in 2007 and 2008, respectively. The same trend applies to all the other expertise areas as well (see figure 5).
Figure 5. Average number of selected options per comparison project.
There might be multiple reasons that have lead to this increasing demand on providers’ expertise in various areas. Some of my guesses are that application software outsourcing projects are becoming more complicated; buyers are more aware of the relationship between vendor expertise and project success; or, buyers now have more bargaining power as the supply-demand equilibrium shifts. Since the statistics only show the result, I will leave the “cause” part open for discussion, and hope that your comments will help us to better understand the “reasons why.”
Are you running a company and need assistance with your customers / Data Entry / back office and are unable to handle the calls/Data Entry Processing or is the cost of a customer service department unbearable to your company or is too high then Heliosys can help you! we are one of the leading a call center designed to handle customers and marketing campaigns for SMEs in the UK and the US. our current major market is the US but we also provide services to UK clients ,so if you are running a company and need an economical answer to excellent customer service than Heliosys is the answer.It is our commitment to provide our clients with the most cost-effective strategies to simply meet their demands. ….for more details and inquiries and to receive our company’s portfolio please feel free to contact us. firstname.lastname@example.org +919994925455
Heliosys Solutions (an ISO 9001 & CMM III Company) offers services on BPO/e-Learning software solutions, next generation web application, web 2.0, Adobe Flex, Rich internet applications (RIA), .net , Java , LAMP (Linux, Apache, Mysql, PHP/ perl/ python), web design & web application development.
Heliosys Solutions is a company whose principal purpose is to deliver high-end business process outsourcing (BPO) services and contact management solutions globally. We are dedicated to connecting our clients with their target markets and helping businesses to communicate with their customers through innovative and integrated service programs and cutting-edge telecommunication and software systems.
In our ongoing endeavor to become a major player in the industry, Heliosys Solutions aims to improve and develop its enterprise in such a way so as to surpass the common expectations and trends in the market.
Heliosys Solutions not only keeps up the good rapport with CLIENT but we work for the CLIENTs Success.
as it is really informative process which can help all the possiblities this to be done in future
i am extremely satisfied for usual trend line .
Bal rai kumar
It is nice to see the article.
With best wishes,
Dr. Antony Joseph
Bangalore - 97