Recession Puts Heat on Outsourcing

Outsourcing on the rise:
A new Gartner report says 76 percent of outsourcing contracts announced in 2008 were new deals, reports Network World. At the same time, the report said existing companies are re-evaluating their contracts, looking for ways to gain efficiency and cut costs.

This Business Week piece, which delves into Indian outsourcers' woes, says the recession is forcing some discretionary IT projects that were to be outsourced to the back burner. It says even small clients are pushing for -- and getting -- discounts in the fierce competition for business.

Meanwhile, though the Mumbai attacks raised concerns about outsourcing in India, recent violence in Mexico is dampening enthusiasm about that country as an outsourcing destination as well.