Increased U.S. Outsourcing, Less Offshoring: Report
A new report by Technology Partners International (TPI) predicts that there will be an upsurge in outsourcing by American firms later this year as they seek to reduce operational costs and improve productivity.
Yet more of that demand will likely be handled domestically, including in contact centers, rather than offshore. As a byproduct there may be more mergers and consolidations amongst outsourcers that may result in a stronger outsourcing industry.
The study, Outlook for the Global Outsourcing Industry in 2009, identified the global economic crisis and a projected long recovery time as outsourcing drivers. Declining consumer confidence and spending and credit erosion are acting as catalysts favoring outsourcing to enable firms to get through the downturn.
At the same time it pointed to growing concerns about the stability of offshore outsourcing as exhibited by the scandal surrounding the Indian outsourcing firm Satyam and the Mumbai terrorist attacks. These factors, along with higher unemployment that will curb costs and growing political pressure to lower joblessness, may keep much of the outsourcing work in the U.S.
