Outsourcing will boom in 2008

The need to cut costs in s weak global economy are predicted to drive IT Outsourcing growth up in 2008. Actually there is a amazing 53% share of companies which plans to increase outsourcing spending in 2008.

This was comming from 38% in 2006 and 48% in 2007. This is comming from silcon.com according to a survey of 250 IT professionals by the american outsourcing and business process outsourcing company Syntel. Their CEO, Bharat Desai, said outsourcing is one industry that will NOT suffer from the crisis in the credit markets. Desai said in a statement: “In a weak or uncertain economy, companies look for technology solutions that will increase productivity, efficiency and savings.”

The link between outsourcing and savings was reinforced by a separate study by BPO provider Sutherland Global Services, which found cost reduction and the ability to provide a variable cost model was in the top five reasons for outsourcing for more than 90 per cent of businesses it questioned.

The study of BPO trends for 2007 surveyed major global companies in the insurance, banking, telecom, retail and banking industries. It found that tech support and customer care departments continue to be the most commonly outsourced divisions, standing at more than 60 per cent and 40 per cent respectively, and that India and the USA are the most popular locations, chosen by about 70 per cent and 60 per cent of respondents.

Data and site security topped the list of what companies want from their outsourcers for 80 per cent of businesses, with an understanding of process and industry experience close behind.

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