Economy Squeezes Outsourcing Industry

Susan Hall

A report by outsourcing advisory firm TPI finds the economy continues to put a damper on the outsourcing industry, reports InformationWeek.


TPI tracks commercial outsourcing contracts of $25 million or more and found the number fell to 135 globally in the second quarter, a drop of 7.5 percent from the first quarter. In the first half of 2009, there were 11 percent fewer contracts and their value was 22 percent lower than in the same period of 2008. President Mark Mayo said in the company's press release, however, that the first half of 2008 was very strong, making the comparisons even more difficult.


The company said demand remains stable in the Americas and Asia Pacific and has increased in certain sectors, such as transportation, retail, telecom and diversified financials. has an interview with the head of TPI India, Siddharth Pai, saying it's seeing signs of economic recovery. And The Wall Street Journal noted that three of India's outsourcing companies reported better-than-expected profits in the most recent quarter. Those companies are reporting price pressures from their clients, though.

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