What is the impact of recession in Outsourcing? ?

Question

Since the economic trend is unhealthy now,what can be the business impact on countries like India which depends on the US (on offshore outsourcing) clients?

Answer 1

The average rich person in India just lost 60% of their wealth.

http://sg.news.yahoo.com/afp/20081115/tls-india-us-forbes-lifestyle-wealth-bil-aeafa1b.html



The longer the economic chain, the greater the impact to the world. That's why some businesses are labeled "To big to fail." They are so large that they can really do serious damage to the economy if they fail. Government bodies then look to see if the company can be saved to prevent a major economic problem.



Much of India's link to the outside world is through various types of service centers. It could be customer support, billing or a host of other information type work that can be done over the phone/internet system. These systems could be dropped as companies downsize or collapse.

Answer 2

As you have said the economic trend is unhealthy, the companies which can withstand the situation will survive.



It also depends on the decision of the government of the outsourcing countries.

Ex: The decision of US president reflects the survival of the small companies and the employees of that company.



I guess the small companies will define shut down before the decision of the US government.

Answer 3

It is my mind economical global conditions is temporary unhealthy not for long run. India and US may over come within few months. on offshore outsourcing will be take active part for more improve in the global economic.

Answer 4

Yes, it will certainly impact adversely on the "Off shoring", i.e. BPO and Call centers.

I don’t think the blow will be very huge on "Outsourcing" front as "IT" companies are not only depending on US but they have diversified. (At least some Big companies).

Answer 5

Indian outsourcing companies will b definitely affected. Initially big companies take over small companies and some small companies will be shut down.