TROY – A survey from Syntel of 250 IT professionals in global companies found that most IT professionals feel a weak economy in 2008 is more likely to increase spending on global outsourcing rather than limit it.
According to Bharat Desai, chairman and CEO of Syntel, outsourcing is one industry that won’t be battered by the crisis in the credit markets. The TrendScan survey by Syntel was conducted from Nov. 15 to Dec. 20, 2007.
The survey asked, “If the financial markets continue to struggle into 2008, how do you think it will affect your firm’s spending on global outsourcing?” Of the IT professionals surveyed, 52 per cent said they would increase their allocation in order to accomplish more with less, 28 per cent said they would spend less overall to conserve budgets, and 19 per cent said they would spend about the same as they did in 2007.
“In a weak or uncertain economy, companies look for technology solutions that will increase productivity, efficiency and savings,” said Desai in a statement. “At the same time, investing in innovation becomes critical for companies to survive in consolidating or shrinking markets.”
Desai added, “We are not surprised to see that over half the respondents in our survey plan to increase their spending in 2008 despite threats of a down economy. Outsourcing is a hedge against general IT costs and can be a strategic component of research and development.”
Surveys by Syntel for the past two years showed that 38 per cent of global IT professionals called for an increase in spending for 2006; 48 per cent called for an increase in 2007.
“Now 53 per cent see increased spending for 2008,” Desai said. “Outsourcing continues to become more entrenched in IT strategy. Even with continuing economic worries, predictions for spending on global IT are staying on the upcurve.”
This column was written by Chris Talbot of ConnectIT
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