Offshore Outsourcing: What Role Will the Recession Play?

Essentially what matters with offshore recruiting/services is the quality of people and the effort put in. Mr Burt is right when he highlights the differentiation of his company The clients need to exercise due diligence in evaluating service provider, but at a deeper lever level with insight.

1. Recessions usually impose severe budget cuts on IT and ITES operations of companies. Offshore outsourcing in these two areas are a natural option that is explored. 2. With many companies like Banks merging and consolidating, downsizing, the offshore operations of service providers will be affected negatively, without fail.  If your customer in the U.S does not exist anymore you don't need...

As the Global economy slows there will be greater pressure on organizations to map costs to lowering revenues. If stock prices are to stay level companies will need to maintain profit margins. As revenues shrink the one action companies can take to keep costs in line is to look at moving some of their work to cheaper labor markets. This should be done in a way that the company keeps total control...

IT outsourcing companies have to accept the fact that they have to deliver value – in business terms, in these troubled times for their clients. They can not carry on any longer just being “nice” to their clients’ IT bosses. Especially, since IT arms of companies themselves have to prove their worth. The better “thinking” service providers face a dilemma – if they think of original solutions, their...

Main point to understand about Offshore Recruiting: Not all Offshore recruiting firms are built the same. 

As the economy contracted many thought that would actually help offshore outsourcing, as the effort to reduce costs would drive more business their way.  Judging from early returns, that doesn’t appear to be the case.  On the contrary, this may well be the beginning of a sea change in the overall offshore outsourcing market.