HOUSTON & LONDON--(BUSINESS WIRE)--The business case for outsourcing is building as the global economy
slides deeper into recession, but the ability to execute multi-year
outsourcing deals is hampered by tight capital and market uncertainties,
according to international business advisory firm EquaTerra. Industry
consolidation, reshuffled priorities and continued budget/staffing cuts
are fueling pent-up demand that will likely result in an increase of
judiciously planned outsourcing engagements in the second half of 2009.
EquaTerra’s Advisor and BPO/ITO Service Provider 4Q08 Pulse Survey*
finds that as organizations worldwide urgently seek ways to cut costs
and free up cash flow, experienced outsourcers are beginning to
migrate/consolidate contracts to gain economies of scale and preferred
pricing, terms and conditions, while new buyers are entering the market
via speed sourcing – streamlined efforts focused on a few key
initiatives to rapidly realize outsourcing benefits.
In light of recent terrorist attacks and financial scandal, wary buyers
may shift more work to larger, more established Indian firms and away
from second-tier players and first-time buyers may want the added
assurance of offshoring in India with top-tier western-based firms with
extensive Indian operations. Despite concerns, however, EquaTerra
expects India to remain the top-ranked offshore destination for the near
term, according to Stan Lepeak, the firm’s managing director of global
research. “We anticipate heightened scrutiny and greater safeguards
being built into new and existing contracts, but India will retain its
lead in the near future due to its many advantages, including language,
talent and experience.
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