2009 Recession and Outsourcing
During the year 2008, the best word to describe the economy is "uncertain". Now, we are officially in a recession. The most apparent impact of this economic downturn is that many companies are looking for ways to cut down cost to avoid any further corporate maelstrom. The necessity for companies to trim down it's programs and projects open viable opportunities for the outsourcing industry.
According to the Forrester Research, IT companies, during the second quarter of 2009, will find it appealing to outsource some of its process procedures to cut down cost. Sales from this branch of outsourcing will only be moderate, owing to trends toward use of lower-cost offshore resources, smaller scale outsourcing deals and the 9-15 month lag from the decision to outsource. One area of growth is likely to be demand for managed network services offerings, which vendors are pushing and clients are increasingly adopting.
Other than Information Technology, the Legal Process Outsourcing industry is set to peak this year as well. Most LPOs employ an eclectic mix of lawyers, paralegal professionals and engineers for various outsourced functions. An Indian company predicts that out from their 500 employees their company will house around 2000 employees by the end of 2010. Numerous foreclosure-related assignments from US banks and law firms have been keeping Indian LPOs occupied, besides the usual assignments like indexing and coding to database maintenance, patent support, contract review and management, litigation support and legal compliance.
Another lucrative outsourcing industry is the graphic and marketing niche. For many business, graphic design or marketing is something they do on a sideline. Although marketing is integral for any business, it usually does not belong in a company's core process unless of course you do marketing for a living. However a business will still need to sell it's brand which makes outsourcing a healthy option than keeping an entire team dedicated for marketing.
Despite President Obama and the Democrats' promise to cut incentives for outsourcing, sending contract work offshore may still remain attractive due to the quality of work and significant cost savings offered by countries such as the Philippines.
According to the Forrester Research, IT companies, during the second quarter of 2009, will find it appealing to outsource some of its process procedures to cut down cost. Sales from this branch of outsourcing will only be moderate, owing to trends toward use of lower-cost offshore resources, smaller scale outsourcing deals and the 9-15 month lag from the decision to outsource. One area of growth is likely to be demand for managed network services offerings, which vendors are pushing and clients are increasingly adopting.
Other than Information Technology, the Legal Process Outsourcing industry is set to peak this year as well. Most LPOs employ an eclectic mix of lawyers, paralegal professionals and engineers for various outsourced functions. An Indian company predicts that out from their 500 employees their company will house around 2000 employees by the end of 2010. Numerous foreclosure-related assignments from US banks and law firms have been keeping Indian LPOs occupied, besides the usual assignments like indexing and coding to database maintenance, patent support, contract review and management, litigation support and legal compliance.
Another lucrative outsourcing industry is the graphic and marketing niche. For many business, graphic design or marketing is something they do on a sideline. Although marketing is integral for any business, it usually does not belong in a company's core process unless of course you do marketing for a living. However a business will still need to sell it's brand which makes outsourcing a healthy option than keeping an entire team dedicated for marketing.
Despite President Obama and the Democrats' promise to cut incentives for outsourcing, sending contract work offshore may still remain attractive due to the quality of work and significant cost savings offered by countries such as the Philippines.
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