EquaTerra Finds Case for Outsourcing Building as Global Economy Slides into Deeper Recession

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. more…

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