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As 2009 Q3 is almost over it is a good time announce our regular quarterly results of the outsourcing market overview.

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Outsourcing is the buzz word in today’s world; more and more companies are following this practice to reduce costs by transferring portions of work to outside suppliers rather than completing it internally.

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Whether you’re talking about IT or back-office work, business process outsourcing contracts signed during the recession have tended to save dollars in a way that can be easily demonstrated to senior management, say BPO experts.

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During the past year, finance chiefs have been wearing bifocals, peering into the crevices of their companies’ various department budgets for cost savings.

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In human years the offshoring industry as we know it is getting close to the prime of its life. It has grown from bouncing baby when doting customer service managers and CIOs looked on, excited as their costs fell thanks to those happy offshore agents and developers.

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The five-year BP outsourcing deal for $1.5 billion (Rs 7,500 crore) is the best piece of news that the outsourcing industry has had since the global recession began.

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Increasing IT budget constraints have impacted spending in the region and therefore new kinds of business models like managed services and software-as-a-services (Saas) are expected to see a lot more appetite this year, research firm International Data Corp (IDC) said.

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One of the few ways many small business owners are able to grow their businesses is through outsourcing. With many small business owners working 60 to 80 hours per week, outsourcing can free up a lot of time and energy so that the business owner can concentrate on working ON their business, and not IN their business.

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Outsourcing providers are touting their ability to move beyond service-level agreements to deliver services tied to customers’ business results–higher sales, lower costs, reduced errors.

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The software and IT service market could recover by the end of the year part of the decline registered in the first half of 2009, as some major projects are expected to be launched both in the public and private sectors.

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