Economic crisis no threat to BPO: BPO Watch India

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Economic crisis no threat to BPO

By BPO Watch News Desk
November 09, 2008

Perception about cost savings would ensure that outsourcing will be able to tide over tough times

Economic crisis no threat to BPO

A recent survey conducted by a British trade association recently allays fears of an acute negative impact of the global recession on the outsourcing industry and shows that the offshoring companies had developed requisite maturity to survive the current meltdown.

Conducted by Intellect and published in IT-PRO, the survey shows that since IT outsourcing is seen as a source for additional business efficiency and cost savings, there would be no major impact of the global economic slowdown.

It says that the technology industry has found higher levels of maturity in the outsourcing sector and this would ensure that the companies manage to stave off the ill-effects of recession, Intellect has said adding that outsourcing was well placed to handle downturns because of the perception of delivering higher business efficiency and cost savings.

The survey which spoke with as many as 94 outsourcing experts including suppliers, end users, analysts and academics, showed that while 47 per cent expected an offshoring backlash while 77 per cent saw offshoring as a routine business.

Of those surveyed, over 96 percent felt that multisourcing would be a key trend in the future while 94 percent felt that there would be a additional requirement for in-house sourcing expertise.

A substantial chunk of respondents identified the move from offshoring to global sourcing in the future while most respondents were against bringing back outsourced jobs to the parent economies as a measure of job creation.

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