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A number of long-term outsourcing deals that were signed at the turn of the millennium are showing the strain of age
A number of long-term outsourcing deals that were signed at the turn of the millennium are showing the strain of age, technological advances and changed circumstances.
Renegotiation of current outsourcing contracts is likely on the agendas of customers, particularly those confronting the realities of the current economic downturn and tightened yearly information technology (IT) and business process outsourcing (BPO) operating budgets. With approximately 20 percent to 40 percent of the revenue of offshore outsourcing providers tied to the financial sector, and with Indian companies currently servicing troubled U.S. auto makers, it is possible that such customers will be insisting on price reductions, potentially influencing the entire offshore outsourcing market.
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