Economic downturn means increase in offshoring
News Article - Thursday, April 24, 2008 11:18
Filed under: Hosting, Storage & Managed Services
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The current economic slowdown will lead to more companies choosing to outsource, it has been predicted.
Gartner, the research analysts, said that IT managers will increasingly opt to offshore their processes to low-cost countries.
The company has also predicted that India will remain the top choice for these firms.
A research director at Gartner, T J Singh, said: "Factors that will give India the edge over other offshore locations are scale and quality of labour.
"North American and European buyers of IT services have been the force behind a growing offshore services market and India is central to almost any discussion of offshore services delivery for these buyers."
He added that India is the "most sophisticated country option" for offshoring and will remain to be.
Allie Young, vice-president at Gartner, said that cost savings will be the main motivator behind the move.
A recent survey found that European IT firms are more reluctant to outsource their work than their US counterparts.
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