outsourcing
A More Pessimistic View of Outsourcing
Filed in archive Outsourcing News by Gary Zeiss, Esq. on March 2, 2009
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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