The traditional model of outsourcing is undergoing a transformation, and there are different theories on what the next model may be. One theory is that the multitude of service providers in India will be replaced by the likes of Google (NASDAQ: GOOG) and Amazon.com.

Just as software sold on disks is being replaced by apps, and desktops are being replaced by laptops, legacy outsourcers will give way to providers who leverage economies of scale, argue Arjun Sethi and Olivier Aries in a BusinessWeek article.

Instead of providing customized software, systems integration and long-term contracts, the new outsourcers will deliver off-the-shelf software on a pay-as-you-go basis, providing greater flexibility and efficiency.

“Thousands of server computers can attack a task more quickly–and cheaply–or handle a patchwork quilt of different technologies that companies use to run their businesses,” Sethi and Aries wrote in a column at BusinessWeek.” This approach will let businesses outsource entire tasks such as the tracking of inventory, paying only for the information accessed or used.”

This evolution is taking place because traditional vendors have eked all the efficiencies they can out of low-cost labor and automation, the authors maintain.

Cloud computing offers a new way to lower costs. “It shifts the center of gravity in outsourcing from physical ownership of assets and process expertise. It focuses on the skills necessary to efficiently manage computing operations that can scale and at the same time are flexible enough to handle scores of different tasks,” they write.

The winners in this sea change, they predict, will be companies like Google and Amazon.com; and possibly Microsoft (NASDAQ: MSFT), Oracle (NASDAQ: ORCL) and SAP.

To stay in the game, leading outsourcers in India will have to form alliances and acquire other companies to gain the necessary scale.

Source:http://www.fiercecio.com/story/will-google-amazon-be-next-big-outsourcers/2010-08-11

In the next five years outsourcing as we know it will disappear. The legion of Indian service providers will be sidelined or absorbed. U.S. and European companies that pioneered this corner of the high tech industry will suffer similar fates if they don’t wake up. Who will emerge as the new leaders? Google (GOOG) and Amazon.com (AMZN), brands that we associate with search and retail, will become better known for outsourcing.

Ludicrous? Not if you follow this industry. Desktop computers yielded to laptops. Web portals AOL (AOL), MSN (MSFT), and Yahoo! (YHOO) are giving way to social media sites Facebook, Twitter, and LinkedIn. Software once distributed by disk is now available as apps over the Web — often for less than the cost of a slice of pizza. And so it goes. The same Darwinian process is creating a fresh ecosystem in outsourcing, one that will usher in an era of consolidation and a new way of working with clients.

Traditionally, outsourcing companies sell customers deals that can span a decade and easily run to tens of millions of dollars. The service provider takes on the expensive, time-consuming task of building and operating the digital tools that the customer requires to vanquish the competition, often involving development of custom software to get the job done. To do that, service providers need aisles of powerful computers, armies of programmers, and lots of applications, which are housed either at the client’s site or located at a third-party data center that’s usually owned and paid for by the client but managed and maintained by the outsourcer. Accenture (ACN) is a good example of the old model of outsourcing, which involves long-term contracts; customized software, legacy software, or both; and on-site systems integration work.

In the new model, outsourcers provide standard, off-the-shelf software on a “pay-per-drink” basis. For that, they will leverage so-called cloud technology, which lets users tap into computing power available via the Internet, rather than on a desktop or computer server housed locally. The appeal is scale, flexibility, and efficiency: Thousands of server computers can attack a task more quickly — and cheaply — or handle a patchwork quilt of different technologies that companies use to run their businesses. This approach will let businesses outsource entire tasks such as the tracking of inventory, paying only for the information accessed or used.

Why is this happening now? Let’s start with the relentless pressure to cut costs. Outsourcing is about saving money. Sure the pitch usually revolves around improving business processes, but no client is going to pay more for the service than what it already costs to maintain their systems. Unfortunately, outsourcing vendors have maxed-out efficiencies, both from automation and from moving the work to lower cost-of-labor destinations, also known as “labor arbitrage.” To get to the next level of savings, a ruthless search for greater economies of scale is necessary.

That’s where the cloud comes in. It shifts the center of gravity in outsourcing from physical ownership of assets and process expertise. It focuses on the skills necessary to efficiently manage computing operations that can scale and at the same time are flexible enough to handle scores of different tasks.

These factors will set off a wave of global consolidation in tech services. There are too many companies in this space. Consolidation will be about protecting or building market share or adding technical skills, from connectivity and networking to deep expertise in the delivery of services-on-demand. This is why most Indian outsourcing companies are investing to get up to speed on the cloud. How quickly can they build sufficient scale?

Source:http://www.msnbc.msn.com/id/38658189/ns/business-bloomberg_businessweek/

Google commands a 92 per cent share of the search market in the UK . Invariably, this has helped to make their paid search platform, Google AdWords, the most competitive and lucrative for advertisers.

With greater volumes of search traffic passing through the pages of Google each day, their SERPs are the place to get seen. Whilst Yahoo, Bing and the other search engines offer their own platforms, it is AdWords that most go to by default. This has created greater competition; helping to push up bid prices, Google profits and the expertise required to effectively manage a profitable campaign.

The balance that we all need to find is expense versus return. ROI is vital to a website and is at the forefront of most website owners and Pay Per Click Management agencies thoughts. Therefore it is vital that you are able to manage spend and ensure that your PPC campaigns are targeting the phrases that will return the highest yields.

Why Choose a Google AdWords Qualified Company?

If you are unable to manage your PPC advertising yourself, this will mean outsourcing it to a professional company. This requires a great deal of faith and trust. You have to be sure that the expense of hiring an outside agency will ultimately provide more benefit than it does cost. So what exactly should you be looking for when tracking down a company to manage your Google AdWords?

First and foremost, the PPC agency should be Google AdWords qualified Company. This means that their staff have passed the examinations provided by Google and are therefore knowledgeable about the platform and the best practices for optimising Pay Per Click advertising campaigns on it.

Google will only officially supply this accreditation to companies that meet their requirements; therefore you can be sure that PPC agencies showing the Google AdWords Qualified badge have worked hard to develop their skills in accordance with official guidelines [see: The Importance of Using a Google AdWords Qualified Company]. Or at least that’s how it should be.

How to Avoid Companies with False Accreditations

There are some unscrupulous types who have cottoned on to this accreditation being a sign of professionalism and trustworthiness, choosing to dishonestly claim that they are an AdWords Qualified Company despite never having taken the exams. This, unfortunately, comes as part and parcel with an industry that has a huge revenue turnover and massive potential for returns, just as with SEO in fact[see: 5 Questions You Should Be Asking Before Outsourcing SEO].

The first thing you should do is click on the Google AdWords Qualified Company symbol that they are, presumably, displaying. Any officially certified Google AdWords Company will have an embedded link within the image, leading to its own Google Certification Program page (see below for example). This is hosted by Google and therefore provides the most conclusive evidence to support their claim of being a certified business.

If there isn’t an embedded link, this should raise a little suspicion; although there is one final test you can do just to make sure. Google have now created an easy way for business to find AdWords Qualified Companies.

Using Google Partner Search

Google Partner Search is a new innovation from the search giant. It helps you to track down Google Qualified companies in your area and budget range. This will allow you to filter out all of the pretenders and get straight to those who obtained the qualifications that will better benefit your PPC campaigns on Google. Partner Search refines the whole process and allows you to bi-pass the potential pitfalls of a general online search .

Unfortunately this hasn’t yet been enabled for UK searchers, although full search capabilities should be in operation within the next fortnight. For now though, if you are in the UK and want to check on company’s AdWords status, there is a simple Search by Partner Name function beneath the main search. This will return any qualified businesses with the name you’ve entered. So if yours doesn’t come up, they aren’t qualified.

In terms of quality assurance for the AdWords environment, official Google Certification is the highest available standard. It isn’t an absolute guarantee, but it is the best the industry is able to offer when it comes to measuring quality in services. You should still do background checks to see how they have performed for others clients; so make sure you look out for case studies, testimonials and any personal recommendations you can obtain.

So if you’re looking for PPC management services and don’t want to get stung by a fraud, make sure they are fully qualified to manage your account.
You might be interested in the following related posts:

The Importance of Using a Google AdWords Qualified Company

Professional Photography Software Company Select Impact Media

So, Why Would You Use Google AdWords Services?

Hampshire PPC Specialists Selected by Document Scanning Company

Google AdWords Search Partner Statistics Uncovered!

Source:http://www.impactmedia.co.uk/blog/pay-per-click-ppc/google-adwords/how-to-find-a-google-adwords-qualified-company-2903/