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Outsourcing demand increases

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Outsourcing demand increases

Tuesday, 28/4/2009 04:24
There has been an increased demand for outsourcing to create cost savings, it has been suggested.

EquaTerra, a global business advisory firm which tracks worldwide demand for third-party business and IT service, suggested that 57 per cent of companies polled in a survey saw a surge in their new deal plans.

Stan Leapeak, the managing director of EquaTerra, said that there had been "pent up demand" in the past two surveys from the company.

"These deals are beginning to flow as the need to control costs outweighs reluctance to initiate major change efforts like outsourcing in the midst of an economic crisis and regulatory uncertainty," Mr Leapeak added.

Other discoveries from the EquaTerra Pulse survey show that over three quarters of advisors at the company found that buyers were focused on cost-saving deals within the next year.

"Ironically, despite popular backlash, the recession is likely to break through remaining resistance to outsourcing as business becomes more adept at using the tool to cut cost and improve efficiency," Mr Leapeak concluded.

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