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The financial crisis and outsourcing - TPI’s perspective.
Paul Allen, Partner and Managing Director, TPI shares his views on how the outsourcing market would evolve in 2009 given the current financial crisis. I have summarized some of the points below:
Impact for the rest of 2008:
-Budget for back office functions in most companies will get scrutinized and scaled back.
-Existing contracts maybe called upon to scale back on the bells and whistles to lower costs.
-New projects with even a strong business case would be held back.
Impact for 2009:
-2009 should see a growth in outsourcing through added scope.
-Divested operations could be a major growth factor.
-Transformational outsourcing will be put on the backburner.
-Increased government involvement in management will not lower outsourcing.
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