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Volume 32, Issue 3

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Thursday, 22 November 2007 00:24

Global Outsourcing During Tumultuous Times

Written by  John Dieffenbach

The combination of political turmoil, a down economy and technology developments are providing new and challenging legal issues for manager negotiating outsourcing agreements. Hostility in the Middle East as well as the on-going threat of terrorism has increased focus on security at a time when faltering financial markets are causing more companies to outsource technology functions as a means of cost-cutting. This combination raises three new areas where managers must focus their attention: security, disaster recovery, and privacy. One of the fastest-growing areas in outsourcing is contracting with offshore software development companies for legacy and custom application development and maintenance. Dr. Arvind Shah, founder of India’s National Association of Computer Trainers, claims the U.S. economic slowdown will actually benefit Indian development companies as cost-cutting drives work to less expensive service providers. But the risk of political instability in some of the countries providing these services, such as India, China and Eastern Europe