The global economic downturn forces more companies to lower their costs and increase profits by the IT functions are outsourced to external service providers. According to market researchers, the market for IT services grow in 2008 continue to increase with expenditure on IT functions by 9.5% to $ 819 billion. The strength of the IT services market is also illustrated by the decreasing number of reports of profit declines for IT service providers in the UK. So it was in the second quarter of the hardware and equipment sector, only 12 such reports, compared to 20 in the first quarter. Outsourcing consultants argue that companies that are looking for ways to cut spending (given the unfavorable economic situation), reductions in projects that affect business operations, such as outsourcing contracts and major IT implementations do not need to be considered.
This left the IT service providers largely unaffected by the cuts in IT budgets. For long-term projects, it is highly unlikely that this will be reset due witschaftlicher factors. Moreover, SMEs also increase their IT spending to expand in the hope of their business and to minimize the reliance on manual processes, that is, to reduce personnel costs incurred.
Search within this period of economic decline, the buyers of outsourcing services increasingly to value-based contracts, whereby their views often directed to the east, in the hope of big savings and eliminate the need to move personnel. Although India is traditionally regarded as the outsourcing destination, China, Morocco and Ungran gaining in popularity. Actually opened in January 2007, eight p.m. IT services provider in the UK 21 new global sales offices, four of them in China, three in Eastern Europe, also three in Morocco and two in India.
The economy is in a downturn, rather than in recession, companies have the resources to offload. They are tools which intend to invest in the company of certainty about future benefits and savings. When outsourcing, companies have to an IT service provider Available to their needs and requirements best, while the service to raise high-quality resources and tools have to offer the buyer a strategic solution in accordance with the requirements.
Both the provider and the customer should see this economic downturn as an opportunity to drive the business harder.
Source: ComputerWeekly
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