Impacts of Recession on Outsourcing Industry

The outsource market is strong and it will not change due to this financial crisis. Western companies are started viewing India as a strategic place to not only outsource higher-value research work, product design etc, but also to sell their own products and services. In the long-term once the dust settles in the US financial market, Indian e-commerce and BPO companies will be in good position to attract more outsource work from the US businesses. Such countries show the downing trends in growth of salary, cost of living, real estate prices etc. These all make cheaper the outsourcing services for offshore companies for instance from US, UK etc. Additionally Recent currency rate further elevate profit margin for offshore companies. They have view of negative impacts but I posses some contrary view as I believe that a recession is actually a great time to start a new venture. Take advantage of the lack of froth now, when talent is available, resources are cheap. Previous experience reveals that whenever there's a slump people outsource more, not less.