Friday, September 25, 2009

CRM outsourcing attractive in recession

The sub-prime mortgage fiasco and subsequent global financial meltdown have left many organizations scrambling amidst budget cuts, layoffs and corporate reorganizations. When it comes to IT, the recession is suddenly making outsourcing CRM and other functions more attractive options, according to analysts.

"If anything [the recession is] increasing the focus on spend," said Phil Fersht, research director, global business services and outsourcing with Boston-based AMR Research Inc. "Companies aren't going to be spending more money on IT and services. They're trying to get more with less, and that means exploring avenues that take advantage of lower-cost delivery. There will be more demand for outsourcing services that have immediate cost impacts on the business and not a heavy initial investment."

Before the economic meltdown, outsourcing was already on a strong growth path. Gartner Inc. is still predicting 60% growth in offshore IT outsourcing in the U.S. in 2009 and 40% growth in Europe. In addition, The Hackett Group, a Miami-based consulting firm, is predicting that a quarter of IT jobs at Global 1000 companies may be moved offshore by 2010.

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