IT Outsourcing in Terms of the Current Crisis - Collapse Or Remedy?

Since beginning of October the world started changing,projects which have high level of necessity for the
everywhere - newspapers, radio, TV, Internet - youcompany activity will be processed. Re-viewing of
hear and see these words "Global Financial Crisis".project importance for the business will be taken
Some experts call it a financial collapse. The mainalongside with re-considering of project budgets. Crisis
problem for all companies is how to reduce expenseswill not omit outsourcing industry. But this crisis will do
with minimum losses for their business. The aim of ourmore harm to vendors already providing services to
article is to give an answer to the question: "Canclients rather than start-ups. Knocking down of project
outsourcing become a remedy to this disease?"budgets may force outsourcing companies to lower
And the answer is definitely "no", just as there is notheir prices, so that margins will shrink or nearly
panacea for all woes. But still we'll try to understand ifdisappear. Companies that are just developing could
offshoring could solve some problems resulting fromget some benefit from the current situation. After
the current situation.financial and industrial organizations complete their
World companies are now trying to get rid of extrabudgets for the first quarter of 2009, vendors will have
costs, including employee base. Expenses paid to theto re-consider their rates and beginners are more
outsourcing company are far less than thoseflexible in this meaning.
connected with keeping your own employeesGartner, the world's leading consulting agency, offered
completing the same task. Offshoring has alwayssome solutions to outsourcing companies, how to
served this way. As a matter of fact, outsourcingbehave and what strategy to choose in order to stay
industry has always been attractive due to its ability toup in terms of the crisis: "all outsourced projects must
improve TTM (Time to market). And now in terms ofdeliver the promised improvements in business
the present financial situation companies realize theperformance. From now on businesses will only be in
necessity of outsourcing more than ever. That's whyneed of IT that can deliver true value in terms of
all outsourcing companies have their fingers crossedbusiness performance".
hoping to attract as many clients as possible.To sum up, outsourcing industry will probably be the
However, it doesn't mean that all companies will havemost 'surviving' sphere these tough days due its high
their business outsourced. Cost reduction meansnecessity for companies that want their business
reduction of projects on the whole. Naturally, thoserunning smoothly.