Fearless forecasts and the Obama effect
“Whenever there’s a downturn people outsource more, not less. Organizations want to take costs out wherever they can,” says Gartner analyst Linda Cohen. While outsourcing deals slowed down in 2008 and (early) 2009, a lot of work still find their way offshore. Some analysts even suggest that businesses don’t decide whether they should outsource work anymore; what can be outsourced will be outsourced. It will be a tough time for both buyers and vendors, but don’t write off the industry yet. Hat tip: raise the cap on H1-B and retain talent and taxes.
EB’s fearless forecast for outsourcing in 2009: it’s all about cost-savings. From plateauing pay scales to consolidation, money is a major–if not the only–consideration. Oh yeah, there is also the Obama effect.
