Outsourcing Sees Bumps in the Road

Filed in archive Outsourcing Issues on July 18, 2008

In a posting in today's wall street journal BizTech Blog, Ben Worthen points out that outsourcing is taking a bit of a hit in this slow economy. Mr. Worthen pointed to a survey conducted by Goldman Sachs that found that 33% of tech leaders expect to shrink their services budgets this year.

As I've stated before, outsourcing is great if a company is looking to do more with less. In the current environment, however, many companies are, in fact, trying to do "less with less," a position that compromises outsourcing's value proposition. This will prove particularly true if companies, as many do, keep their "crown jewel" projects in-house and outsource ancillary projects that can be cancelled in a down economy.