Source: Gerson Lehrman Group
Implications: 1. Recessions usually impose severe budget cuts on IT and ITES operations of companies. Offshore outsourcing in these two areas are a natural option that is explored. 2. With many companies like Banks merging and consolidating, downsizing, the offshore operations of service providers will be affected negatively, without fail. If your customer in the U.S does not exist anymore you don't need your 1500 member team that you have assembled for that customer. 3. When the larger consolidated companies look to cut costs after consolidation offshore options again are explored for cost cutting.
Analysis: The overall impact will be significant on the companies doing the offshoring. The offshore service providers will go through a lot of changes with older contracts going away and newer ones coming in. What the net is - postive or negative is up in the air. This is why this article is important - what will be left standing after the tsunamis wash over?
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