US Recession May Spurt Outsourcing Reports
For long, IT/ITES companies have been riding the wave of outsourcing, growing by leaps and bounds.
Around the world, low-cost outsourcing destinations like India, Ireland, South Africa, Philippines have benefited from outsourcing, especially by firms from the USA.
It was like the outsourcing industry around the world was run as a subsidiary of the US/European economy.
However, since last 6 months, the US economy has undergone major changes.
There has been a severe subprime crisis hitting the economy, with the US dollar value has depreciated to record levels.
According to Forrester group, companies are now holding back their IT budgets to cut expenses.
However, after some time, the companies may outsource more of their processes when cutting costs pressurizes them, in case the present recession settles to become a mild one.
The research group also mentioned that the outsourcing market will rise by 4% in 2008 to $162billion compared to a growth of 6% last year.
This is a marginal fall in growth rate for outsourcing.
However, Indian IT/ITES regulatory body, Nasscom, says that Indian outsourcing will continue to grow further.
Last year, it grew at a scorching pace of 29%.
Ameet Nivsarkar, the VP of Nasscom adds that while recession will halt long term outsourcing plans for US companies, outsourcing will rise further during the recession.
Srinivas Vadlamani, CFO of Sathyam technologies says that there wont be an overall slowdown in outsourcing, though some sectoral changes may be witnessed.
Medical Transcription companies are a part of ITES services.
These haven't witnessed any slowdown as yet due to recession, obviously due to their dependence on healthcare centers, hospital and clinics for their revenues.
Around the world, low-cost outsourcing destinations like India, Ireland, South Africa, Philippines have benefited from outsourcing, especially by firms from the USA.
It was like the outsourcing industry around the world was run as a subsidiary of the US/European economy.
However, since last 6 months, the US economy has undergone major changes.
There has been a severe subprime crisis hitting the economy, with the US dollar value has depreciated to record levels.
According to Forrester group, companies are now holding back their IT budgets to cut expenses.
However, after some time, the companies may outsource more of their processes when cutting costs pressurizes them, in case the present recession settles to become a mild one.
The research group also mentioned that the outsourcing market will rise by 4% in 2008 to $162billion compared to a growth of 6% last year.
This is a marginal fall in growth rate for outsourcing.
However, Indian IT/ITES regulatory body, Nasscom, says that Indian outsourcing will continue to grow further.
Last year, it grew at a scorching pace of 29%.
Ameet Nivsarkar, the VP of Nasscom adds that while recession will halt long term outsourcing plans for US companies, outsourcing will rise further during the recession.
Srinivas Vadlamani, CFO of Sathyam technologies says that there wont be an overall slowdown in outsourcing, though some sectoral changes may be witnessed.
Medical Transcription companies are a part of ITES services.
These haven't witnessed any slowdown as yet due to recession, obviously due to their dependence on healthcare centers, hospital and clinics for their revenues.
Source...