In those hard time for virtually any industry the interesting question for outsourcing professionals or companies using outsourcing is the following: Will the offshore outsourcing industry grow or decline? Is this the end of offshore outsourcing golden times or the beginning of the new wave?

From our prospective it’s both. Here is why: about 20-40% of the revenue of traditional outsourcing houses goes from financial institutions. With the collapse companies have been forced to enter into different vertical markets. Typically that would be a good measure to compensate the losses. But the current problem is that everyone is in the same boat - industries, markets, countries. For example travel verticals seeing the rise in cancellation of reservations and tickets, automotive sells dramatically less cars then usual, the list goes on. At the same time in the reality of the crisis companies facing difficulties try to search for the way to stay competitive and make the ends meet. And outsourcing is a cost effective solution which was invented long time ago. It’s a matter of applying it now effectively. During the last two weeks our marketing department sees the increased number of leads coming in. Fact! It’s interesting times because it’s mix of positive and negative happenings for offshore outsourcing companies and the managers need to be creative to make sure that the business drives true value to the customer they need to work on differentiation factors. Price is important too this time! I’m sure that the ineffective players will sink and leave and those with the strategy will become more powerful then ever. They are helping companies to stay competitive in those difficult times anyway.

Tags: offshore outsourcing, outsourcing companies, outsourcing industry, recession
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