CRN Chat: Are your customers looking offshore?

According to an IDC report, the current economic climate is driving companies to reconsider the benefits of off-shoring.

These companies have not previously considered outsourcing and they are driven by the need to reduce costs and optimise headcounts.

The report entitled, Australia Outsourcing Services Market Forecast and Analysis 2009-2013, reveals that the total outsourcing market stood at $6.4 billion in 2008 and is predicted to grow at a five year compound annual growth rate (CAGR) of 4 percent over the forecast period 2009-2013.

It reveals organisations that have previously shied away from offshore outsourcing are actively evaluating this delivery model to reduce back office costs and gain access to skills while optimising their resources to adapt to the slowdown in the economy.

Marina Beale, senior market analyst, IT Services at IDC, said the current economic situation is driving more organisations to think seriously about outsourcing as a way to keep costs down, in particular we expect to see a greater interest in managed services.

"In a time like this, to have differentiated outsourcing strategies and options that address the diverse needs of a cost conscious market, will benefit the market," she said. 

"Overall, any cost cutting solution will be high on the agenda for most company CIOs.

"For example, virtualisation, Cloud computing and SaaS are examples of solutions that offer potential savings related to both capital expenditure as well as operational expenditure."

She said companies, large and small can potentially benefit from these technologies/delivery models, which would level out the competitive playing field.

While organisations look at outsourcing, are resellers and integrators seeing the benefits of the boom? Are clients looking further afield for cheaper IT deals?

Discuss the issue below.