IT Outsourcing Remains Robust, Even in Face of Recession

The current economic downturn has forced many businesses to look at new and improved ways of completing routine business tasks. The economic slump has triggered a whole ripple of business process re-engineering decisions. One of these major decisions taken, that seem to be quite a trend with most contemporary business houses, is the increasing uptake of IT outsourcing. An increasing number of businesses have resorted to outsourcing their IT processes in a bid to streamline their activities and save on costs. Due to this the outsourcing industry has witnessed robust growth rates. The National Outsourcing Association or the NOA index purports that outsourcing companies are more positive about their outlook today than they were a year ago.

One of the biggest advantages offered by outsourcing IT processes is that it enables companies to vastly cut down on its single biggest fixed costs-payroll. As far as IT budgets go, payroll remains one of the largest cost heads. Cutting down on IT staffing expenditure would automatically have a positive impact on company’s bottom lines. All other costs associated with IT are largely non recurrent. Plus, companies also face the problem of expensive IT machinery getting redundant with advances in technology. Outsourcing companies have decided to reinvent their business models so that they are better equipped to deal with the challenges facing the outsourcing industry. An increasing number of outsourcing companies are looking to save on staffing costs by providing staff augmentation services to their clients.

According to data from IT Job Boards almost two in three businesses have utilized some form of IT outsourcing in the last six months. This illustrates the widespread acceptance and adoption of outsourcing practices by businesses large and small. While this has translated to more redundancies in jobs in client companies and hefty job losses, outsourcing companies have gained massively in the process. Experts argue that despite the accusation that IT outsourcing specialists are taking away jobs from client companies by undercutting, it has to be accepted that they are promoting economic recovery. Soon there could be a trend wherein popular outsourcing destinations become so ubiquitous as to completely plug the economic slump. These software companies often boast of a wealthy roster of astute and knowledgeable IT professionals who are capable of providing tailor made packages suited to individual business needs.


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