Nearshore Americas
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Fears of Recession and Talent Crunch Feed Hopes for IT Outsourcing Growth

A large majority of US companies expect to outsource many of their tech functions over the next six months, with their CIOs being convinced that the talent shortage will not be alleviated in the coming months.

In a survey conducted by Making Science, 86% of US-based CIOs said they were likely to start outsourcing by the end of June this year.

Nearly half of respondents admitted that they already work with freelancers, consultants and headhunters to deal with the talent crisis.

They believe that outsourcing makes them “flexible” and provides ample opportunity to adapt to dramatic changes in the event of an economic downturn.

According to the report, IT leaders are looking for tech solutions, especially those that ease the task of adapting to a fast-changing environment.

More than 85% of respondents said they wondered how deep the recession would be, with 44% of them admitting they were seriously concerned about the potential economic slowdown.

CIOs at companies with fewer than 2,500 employees are more concerned about the economic slowdown than IT heads at large corporations with offices around the world.

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An economic recession may force many companies to cut back on their IT budget. In the survey, 44% of CIOs said they were certain that their company may resort to budget cuts by the end of this year.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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