As the U.S. economy grows bleaker, the reliance on overseas providers of goods and services could be on the downswing as well. The pressure of the weakening dollar combined with maturing labor forces in countries like India is leading to fewer savings for manufacturers and fewer reasons in support of outsourcing. We could very well see current outsourcing systems move closer to home in the future, according to the International Association of Outsourcing Professionals (IAOP). Among the association's predictions for 2009: outsourcing will stay closer to home because of the available local labor from layoffs coupled with a projected increase in government spending on infrastructure.
The IAOP also calculates more volatility in outsourcing due to "global uncertainty," especially as companies lower their IT spending, consolidate and exit markets.
