By Stan Lepeak, Managing Director Research

Outsourcing Market Demand – Holding Steady
EquaTerra recently released the findings from its 2Q09 advisor and service providers Pulse surveys. It showed demand for outsourcing remaining strong through growth levels were not as robust as those seen last quarter. Demand for global sourcing also remained strong as the desire to cut costs continues to outweigh other factors that detract from global sourcing (e.g., trade protectionism, increased availability of labor in western markets at a lower cost than seen in several years). There is also more interest in nearshore services, highlighting the overall growth of all models of outsourcing, as well as buyer desires to take advantage of good deals wherever they can find them.
As buyer appetites for global sourcing remain strong, their preference in locations from which to source services continues to diversify. More buyers are seeking to have global services delivered from locations beyond India. This is a function of buyer desires to diversify, the increased competitiveness of emerging markets like South America, and the expansion of Indian and global providers into more markets. Overall it represents an ongoing move toward a true global sourcing model where buyers deploy and manage global service chains just as they have global supply chains.

Follow the link below to access full results from the Pulse survey, a replay of the webcast presenting the results that I conducted with Bill Thomas, Executive Director of EquaTerra Europe and Asia, and several podcast excerpts from the webcast.

http://www.equaterra.com/fw/main/Demand-for-Outsourcing-Remains-Steady-as-Organizations-Strive-to-Slash-Operating-Costs-to-Weather-Extended-Worldwide-Recession;-India’s-Ranking-as-Preferred-Outsourcing-Location-Drops-20-Percent-in-Last-Two-Years-1276C6.html?LayoutID=64