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Will IT Slowdown increase outsourcing?

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by ukothari

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We are medium size company in India to provide software development services to US based comapnies. In last 6 months we are seeing slowdown in business, we would like to know from members whether this situation will actually increase outsourcing to countries like India, China? What will be the major concerns?
How should be plan for next 6-12 months?

Any comments will be highly appreciated.

Uday

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by xxx123

The trend towards outsourcing started several years ago and will continue into the future. The slowdown right now is, I believe, only a short-term phenomenon.

Basically, companies have halted or scaled back new development waiting to see how the economy will shake out. This is not a reason to outsource. This is just a "wait and see" pattern. However, if the economy remains bad for a long period of time (into next year) then the fundamental cost-cutting benefit of outsourcing will probably increase the number of outsourced projects.

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