Demand for outsourcing increasing in times of crisis

According to the German Association for Information Management, Telecommunications and New Media (BITKOM), turnover generated through IT and business process outsourcing is expected to increase by 7.2% to 14.6 billion Euros in Germany.

“In the current difficult economic situation even those businesses which have so far had a sceptical attitude to outsourcing start thinking about the outsourcing of processes and services”, commented Mr. Martin Jetter, board member of BITKOM, the above forecast.

According to provisional findings, from 2007 to 2008 turnover generated in this sector of the economy grew by 7.4% to 13.6 billion Euros. This increase is a repetition of the development in the period from 2001 to 2002, according to BITKOM. The then economic crisis did not affect the outsourcing business either.

According to Mr. Jetter, businesses are currently concentrating on their core activities: Which parts of their activities are essentially important and which could be better carried out by other market players? “Outsourcing boosts the productivity of the economy“, says Mr. Jetter. In the current crisis outsourcing customers take much quicker decisions on projects than before. In the past it sometimes took more than a year to close an outsourcing contract.

Currently customers prefer IT projects which cut costs rapidly, improve performance and pay off as soon as possible. This was revealed in the course of a survey carried out by BITKOM among leading providers of outsourcing services. GERMAN