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The slowing economy is creating a slowing trend in the outsourcing market. As more companies are starting to feel the financial pinch of a spiraling economy. So to are many departments with the thought of companies outsourcing their IT departments being re-evaluated. If you do a quick search of CS majors and programmer jobs that are in need in the US and UK. You will see that more companies are looking to fill these positions in house instead of outsourcing them to foreign lands.
Some prime examples of companies that have not seen the the cost savings that they were looking for when they moved their IT and data entry to off shore companies would be now failing and restructuring Lehman Brothers and taken over Merrill Lynch. Both companies had a significant portion of their business being handled by outsourcing companies in India although Lehman Brothers had been making significant decreases in their outsourcing over the last few years.
With the recent demise of Merrill Lynch and Lehman Brothers this news has not only caused a terrible tumble in trading markets across the board. It has had a significant impact on some major outsourcing companies in India these three in particular Satyam saw its shares drop by 9.45% and Infosys and Wipro both lost more 4% of their stock prices.
Overtime the benefit of outsourcing has shrunk especially at the financial level. The gap is shrinking rapidly as to how much can be saved financially by moving your IT department over seas. This combined with a global economy that is going through some serious growing pains has swung the pendulum from outsource outsource outsource back to keep company resources and tasks in house.
Where does all this turmoil leave the future of outsourcing? Do you think the outsourcing market will continue to thrive in the coming years or are we seeing a slow and eventual turn back to the ways of old, when companies kept their corporate tasks in house? Please share your opinions and thanks for reading.
2 Comments
Well, for me i prefer having the outsource for the reason that it offers a cheaper cost than to in house employee. Also it would help to a country which offer low job opportunities…
Great ideas, is there a place to elaborate on this all?
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