Outsourcing; its a buyer’s market

Outsourcing is supposed to cut costs and improve efficiency. At least that would seem to be the main thrust of their sales messages. And as our recession continues unabated, you would think that Outsourcers would be having a field day. But they’re not. If anything, buyers are demanding (and getting) more for less. No more mega deals. No more 10 year contracts. Businessess want shorter term deals and more flexibility. This makes it harder for the outsourcer to make money and recover their investment. Outsourcers are focussing on helping businesses through these difficult times and hope that short term contracts will be extended when money is less tight. So retention seems to be the outsourcers mantra. And this makes it a buyer’s market.


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