IT Outsourcing: Time to Act

Hi friends,

I feel Companies should look this period as an opportunity to stay ahead & move forward with offshoring outsourcing. This economic downturn will definitely force businesses to simplify their outsourcing and offshoring agreements to generate faster returns on investment and reduce risk - even if that means glossing over problems in deals and fixing them later.

I think in general, firms will outsource more - they'll become more narrowly focused on their goals. The primary drivers for companies when negotiating outsourcing and offshoring agreements during the downturn will be to cut costs as quickly as possible.

As a result, objectives such as process improvement, innovation and transformation will become less of a priority.

"During this period outsourcing as a tool is probably more important than ever right now but you want to use that tool in a way that it's very clear how you're going to apply it, what you want to get from it and when. This probably isn't the time to be overly ambitious. Businesses should also try to negotiate agreements more quickly, or "speedsource".

Companies should not be too hasty but they need to recognise that in difficult times it might need to accelerate the process and identify some things that they may have to go back and fix later.
It's a process that would be helped by consolidating outsourcing and offshoring providers and staying with those known to be safe choices rather than pursue agreements with new suppliers.

I think country like India should benefit for the same reasons - while newer destinations such as Vietnam could be seen as more risky despite being cheaper.

What is your opinion guys???

How companies should look into offshoring during this period & what they can expect ???

Any thoughts on this........