Contract Length and Reluctance to Outsource

Filed in archive Opinions & Insights on September 27, 2009

© erix!

Many economists believe that we have turned the corner on the recession. Whether or not offshoring companies can take advantge of that turnaround quickly may very well depend on whether they offer customers scalable flexibility (upwards and downwards) that is greater than the flexibility that they would have with in-house personnel.

What will this flexibility entail? Probably a combination of shorter terms, greater downward scalability and more aggressive termination provisions. In fact, I would expect that many sophisticated customers will aggressively move in this direction as deal flow improves and business picks up.