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The Everest Research Institute’s Market Vista: Q2 2008 Report on global outsourcing and offshoring revealed that, despite the unstable economic conditions in the United States, the outsourcing market continues to stably grow with help from European investments.

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Many businesses are wary of outsourcing. They’re concerned about handing over key business functions to an external organisation over which they have no direct control.

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Luxoft, a global provider of high-end application and product development services, today announced it has acquired Bucharest-headquartered ITC Networks (ITCN), a leading Romanian software outsourcing provider specializing in the telecommunications industry.

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With every outsourcing opportunity comes a new contract. In drawing up such agreements, it’s essential to include specific procedures, provide detailed plans in the event that things go wrong and make sure your security is up to snuff.

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Small businesses have always confronted with addressing their IT necessities. The lack of resources – be it staff, budgets or managing resources – have determined SMBs to start exploring the offshore outsourcing option.

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As recently as 10 years ago, outsourcing was mainly seen as a cost-cutting opportunity, says Venkatesh Roddam, chief executive officer of Satyam BPO, based in India.

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The tech industry is crawling with market-research firms that size up products, services, and companies. One firm that’s had a meteoric rise in recent years is Brown & Wilson Group of Clearwater, Fla., which began publishing rankings of global outsourcing service providers in 2005 and publishes The Black Book of Outsourcing.

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When outsourcing, remember that although the supplier takes responsibility for the process, you still need to actively manage the relationship.

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The outsourcing industry has experienced considerable change during the past few years. At a global level, demand for outsourcing generally remains robust as new contracts are signed, and old ones renewed or renegotiated.

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It has its detractors, but in reality there is little evidence to suggest that the outsourcing market is doing anything other than booming.

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