If one industry can survive the instability in the credit markets, it's the IT industry.
A survey of more than 250 IT professionals in global companies reveals that most believe a weak economy in 2008 is likely to boost spending on global outsourcing rather than curb it.
According to Bharat Desai, chairman and CEO of Syntel Inc., which sponsored the survey by TrendScan and counts many clients in the insurance industry, outsourcing is one industry the credit markets won't weaken. "In a weak or uncertain economy, companies look for technology solutions that will increase productivity, efficiency, and savings," Desai said. "At the same time, investing in innovation becomes critical for companies to survive in consolidating or shrinking markets."
Syntel regularly polls Fortune 1000 companies to track the forces driving global IT trends and issues. This survey of IT professionals asked, "If the financial markets continue to struggle into 2008, how do you think it will affect your firm's spending on global outsourcing?" Their responses were: - Increase our allocation in order to accomplish more with less-52 percent
- Spend less overall, to conserve budgets-28 percent
- Spend about the same as in 2007-19 percent
The response continues a trend in calling for more IT spending that recent Syntel surveys have revealed. Two years ago, 38 percent of global IT professionals asked for an increase in spending for 2006; 48 percent expressed a desire for an increase in 2007. Despite economic worries, outsourcing is becoming a more entrenched fixture in IT strategy, Desai noted, so the results of this year's survey don't surprise him. “Outsourcing is a hedge against general IT costs and can be a strategic component of research and development," he said. |
