Companies are increasingly turning to outsourcing in a recession, claimed IBM’s CFO Mark Loughridge, as the company unveiled 4th quarter results ahead of expectations (net income of $4.4bn on revenue of $27bn) on Tuesday.
UKHotViews said on Jan 21st that “Wipro sees 24% European growth” and on 19th December claimed that (as a bellwether of the outsourcing market) Accenture’s 6% revenue growth is “solid and encouraging” with outsourcing the best performer, up 7%. The report claims “outsourcing really is the place to be in a downturn – helping your customers to save money.”
In its report “What’s in store for outsourcing in 2009?” IT World quotes Gartner analyst Linda Cohen as saying “Whenever there’s a downturn people outsource more, not less. Organizations want to take costs out wherever they can.” However, the piece claims that outsourcing will increasingly flourish in a “different” way – with cost, consolidation and the ‘green’ing of industries being major factors. We think trust will be a major factor too.
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Trust Vs Innovation
People must be putting even more emphasis on trust in an outsourcing partner now. But what about innovation?
There aren’t many companies so short-sighted as only to outsource to “take costs out wherever they can” (Gartner) – everyone has an eye on post-recession growth strategies and being tied into the wrong outsourcing contract could make growth a real struggle.
So the list of messages we need to take to market is growing longer by the day:
1. You can cut costs.
2. Trust us – we’ve done it before, we’ve got a great process, and our company is solid.
3. Our solution is the best bet to let you react rapidly to growth opportunities.
I’m sure there are others!
Many businesses are accepting this trend and outsourcing is even expanding until now especially this time of recession. We all know that it’s not just the cost savings why companies outsource some of their works. There are other aspects that they consider.
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