A More Pessimistic View of Outsourcing
In today's Tech Trader Daily section of Barron's a pessimistic view of the Indian outsourcing industry this year. Wachovia's Edward Caso points out that "demand remains lackluster and decision making slow," and also points out that customers are putting downward pressure on their current outsourcing partners.
Kaufman Bros. analyst Karl Kierstead adds that "[the] gap between what we are hearing from our sources in the field and the guidance offered by vendors is widening. And not in a good way."
Of course, it would be naive to expect that service providers will be seeing robust gains while their customers are seeing substantial losses. Also, it is important to remember that an outsourced worker is still more expensive than a laid off worker – and there are plenty of layoffs in the marketplace.
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I hardly agree to this though… the fact that outsourced agents are paid quite a bit cheaper is proof enough that outsourced employees are not making that much in reality…
however this is a pessimistic view of the matter…
Comment by Jefferson Faudan on March 3, 2009 12:18 pm
I hardly agree to this though… the fact that outsourced agents are paid quite a bit cheaper is proof enough that outsourced employees are not making that much in reality…
however this is a pessimistic view of the matter…
Comment by Jefferson Faudan on March 3, 2009 12:19 pm
Outsourcing services give the time to develop and improve strategies that companies must undertake to face the crisis. In Chile, http://www.chile-business.com
is a company that offes BPO services in custom service, back-office, vendor & employee’s payment, payroll, monthly accounting, financial reporting, and general business management.
It is a fact that were you outsource your services must be a country that is: economically stable, has a clear social policy and a stable government.
Comment by Chile-business on March 17, 2009 8:15 am
There must be something in the air. The current recession appears to be bringing out the more base tendencies in at least some practitioners, vendors, former employees of vendors, consultants, and even some analyst firms of late (in the last case, fortunately not in our sector, at least based on the examples I have). In recent months, I’ve seen and witnessed numerous examples of deals and relationships falling apart based on new sets of demands from one party or another. I’ve also seen a number of examples of new-takes — and even reincarnations — of existing pay-to-play business models when it comes to those who claim to influence the industry. To anyone engaged in such behavior, I would offer the basic words of wisdom: what goes around comes around.
Marc Jansen
Philippine Outsourcing
Comment by Marc Jansen Of Philippine Outsourcing on May 11, 2009 12:12 am
According to a write-up that appeared at http://pragmaticoutsourcing.com/ recently, inspite of some recently imposed bans, outsourcing sector in India will grow fast in the coming years without being much affected with recession.
Comment by shubh on May 16, 2009 7:07 am