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Projections for the global outsourcing market continue to be strong for India. The recession and its effects on an individual sourcing recipient (company using outsourcing) depend on the drivers of outsourcing for the recipient.
If cost was not one of the drivers than the recession is not likely to change the outsourcing decision. If cost were one of the drivers the recession can:
- cause the recipient to bring the outsource function back in-house if they are going through contraction and need to cut the contract costs on the strategy that by bringing it in house they can shrink it further. They may also end outsourcing because the need for the service is reduced.
- most likely though the recession will reinforce outsourcing benefits and the use of India sourcing providers offers compelling cost benefits.
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