In the outsourcing to the US, the recent moves by the US government have made some outsourcers unsure of the future, the outsourcing company Infosys has been vocal about the Ohio outsourcing ban. Given the recent Europan downturn, a few days ago the company had become quite reliant on the US to support its income which estimated to be at about 65 percent now compared to 40 percent before. It is a figure that the company will now seek to alter by shifting business from the US from 65 percent back to 40 percent. It is ultimately a wise choice considering that the US companies are now becoming even more cautious in entering into deals with offshore outsourcing companies in light of both the Ohio outsourcing ban and the upcoming US elections.
By Gartner Inc. it has been geared more towards the European market where an estimated 40 percent of companies have been projected to increase outsourcing this year. The organizations in Europe are ex[ecting in need of the growth, but they are also still highly cautious. They conducted the survey in the first quarter of 2010 before the start of the Greek financial crisis. They believe that the cautious expectation of the growth will continue in Europe beyond 2010. While the companies including Infosys and Wipro have observed the cautious spending in Information Technology outsourcing, the companies are pinning their hopes on the Europe. The Infosys has stated that they will be seeking to balance the overall revenue by shifting 40 percent of the business to the US and 40 percent to Europe.
In the US, the amid fears of a double dip recession is higher fees for the skilled workers visas and more states following suit to Ohio’s ban. The companies looking to shift gears and change direction towards other emerging market will likely find it difficult especially among the companies including Infosys who have banked more than fifty percent of the business to the US. And while the Europe is particularly the UK it remains cautious on deals.
REFERENCE:
http://www.blog.infinit-o.com/uncertainty-outsourcing-highlights-shift-direction/
