/24-7PressRelease/ - July 20, 2006 - According to recent Global IT outsourcing survey taken by Midas Outsourcing Management Pvt. Ltd., (MOM) an outsourcing and consulting firm has shown that multinational IT companies, who are outsourcing their business regularly are now taking steps cautiously as the market is getting matured enough.
"We think that IT outsourcing business is now losing the steam. The IT boom is now slowly coming to end. Hence, companies who are regularly outsourcing their jobs, will now first taste the water prior to outsource their jobs in one short", says William Lehman, senior outsourcing marketing advisor.
"We observed that many outsourcing buyers who are near completion of their outsourcing contracts are now thinking for renewal in favor of the same outsourcing company due to various reasons including prime factor of rising pricing cost. Other factors like rising up of new outsourcing local companies are also influencing multinational companies' decision-making," he said
According to MOM, companies who are outsourcing their jobs have realized that complete dependence on IT outsourcing companies is not practically possible. Also, companies can not outsource the complete IT jobs to them, though some part of it would be helpful for companies to pay attention towards their core competencies. Some of them complained the complexity of managing IT outsourcing jobs. Others found that their outsourcing providers are over-promised and under-valued in delivering results.
"Though IT outsourcing jobs are growing with whopping 50% which indicates the robust growth of the IT outsourcing industry, but declining graph of pricing also shows the maturity or saturation of the outsourcing market. Around 10% of the IT companies are going to limit the outsourcing budgets for the next year," says William Lehman.
However, IT outsourcing industry has potential to bounce if it takes appropriate steps in cost-reduction, quality improvement, and timely delivery.
"We are seeing a drastic change in the companies' approach outsourcing their jobs. Now, many multinational companies are going for "backward integration" by blending an efficient employees staff onshore, hiring the most efficient outsourcing provider at a very competitive price, third-party processors and establishment of efficient co-ordination between onshore and offshore outsourcing resources," William Lehman explained in his concluding report.
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PBCNET PVT. LTD, a Pahlaj Bajaj Group of Companies lead by the entrepreneurial spirit of Mr. Pahlaj Bajaj, together with the technical competence and marketing savvy of a professional team having extensive experience in Knowledge Process Outsourcing (KPO) field.
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