Most of the organizations had already begun re-examining their offshore outsourcing strategies even before the global economic downturn. On their outsourced operations, some of the companies are cutting back spending on their outsourced operations, while others are exp0anding their offshore operations in Asia. It is crucial for the offshore service providers to know which industry or sector they should focus on for the business expansion or acquisition of a new accounts, given the companies various take on the outsourcing and current market conditions. With the market research industry, the 2009 annual survey of the market research professionals, the data shows that fewer US market research companies are offshoring all or certain business functions.
The only 18 percent of the organizations providing or using market research engage in the offshoring, down from 25 percent in 2008. With the surprise, there appears to be a significant reduction in the amount of the offshoring conducted within the market research industry. By the attitudes, perceived quality issues and the effort often required to review and revise work performed overseas. The financial sector appears to offer more opportunities than the market research sector, ever since the banking meltdown more and more banks are forced to merge. As the banks merge, they face a huge task of integrating their software applications, consolidating their data centers and other trading platforms into a single entity.
Since the offshoring will help them save costs by 30-40 percent, these banking entities are seeking to partner with a vendor having significant offshore presence, the America’s second largest bank JPMorgan plans to increase its outsourcing to India by 25 percent. The funs industry is also expected to tap outsourcing aside from the banks. The fund industry should expect a burst of consolidation and outsourcing of non core functions in the immediate future. Into the newspaper industry, the offshore providers should also look and the UK based news papers increasingly view outsourcing as a survival tool. The enterprise innovation reports stated that the global print newspaper industry has shown varying growth trend over the last few years. While the Asian economies are registering a growth in the consumption due to the rising literacy levels, the US and European economies are witnessing a secular downward trend in newspaper circulation over it.
There has been an increasing trend of the US based newspapers publishers offshoring to India along with sporadic instances among the UK based publisher over the last couple of years. There is also a strong demand for the IT outsourcing, despite of the current economic environment IT spending in the asset finance industry remains strong, although this may seem to contradict the recent news of the frozen financing in the consumer and the business sectors IT gained a greater share of the operating budgets as a companies look to compete globally.
REFERENCE:
http://www.blog.infinit-o.com/market-research-outsourcing-expansion/
