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IT outsourcing and managed IT services are likely to expand in the economic slowdown, researchers have claimed.

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New contenders are emerging to challenge the Bric (Brazil, Russia, India and China) countries’ dominance of the offshoring market.

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A recent report from TPI shows a slowdown in the signing of outsourcing deals. According to the report new outsourcing contracts in Europe fell from 75 to 56 in the 2nd to 3rd quarter of this year and the only one significant mega deal was signed during the 3rd quarter.

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Larger businesses are more likely to use bigger software companies and seek IT outsourcing, an expert has claimed.

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While India and China remain the undisputed leaders for offshore IT outsourcing, companies have greater choice than ever before, according to Gartner Inc.’s annual ranking of the top 30 countries for offshore services.

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For years, outsourcing tech work to companies in lower-wage countries was a reliable way for businesses to save money on new tech projects.

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Outsourcing trends

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Which way is the wind blowing in the outsourcing market, Whats looming on the horizon in the next five years. Lets look at five areas which may influence the outsourcing markets. This is necessary in the changed world scenario as more and more companies are resorting to outsourcing.

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Large companies are accelerating their use of offshore outsourcing, and as many as a quarter of IT jobs at Global 1,000 firms may be moved offshore by 2010, according to The Hackett Group, a Miami-based consulting firm whose clients include many multinational corporations.

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Was the company’s IT team not up to the challenge? Or was the decision to outsource a top-down mandate to save money? Outsourcing providers and their clients face these difficult questions every day.

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American companies plan to continue to implement their current strategies for sourcing some functions offshore despite the current worldwide economic slump, and the financial downturn may even accelerate such plans.

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