Wednesday, September 10, 2008

Outsourcing used to beat downturn

A key trend for 2009 is expected to be the rise in outsourcing to try to react from increased financial pressure which is being caused by the economic downturn.

This trend would tend to support research by Forrester Research which has revealed the true extent of the economic downturn on IT departments and their budgets.

As a result of the downturn the report claimed that 43% of companies have already increased their infrastructure outsourcing. A similar number of companies said that they would also move their work offshore to try and save money.

As companies are needing to cut costs 14% of firms have said that they have increased there usage of offshore services. Although 22% of firms are not actively using offshore services they are tracking developments and are considering the benefits that they can gain from using them.

However, the research also outlined some of the disadvantages associated with using offshore services. A lot of firms questioned the quality of the work that would be done and other companies stated that it did not save them as much money as they at first thought. However, with the effects of the economic downturn companies will look to outsource some of their work to try and save money.

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