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Slowdown could lead to rapid growth in offshoring, report claims
The US slowdown could see a boom in the offshoring of IT services, according to a new report from Gartner.
The study claims that worsening economic conditions in the US would result in buyers of IT services increasingly looking to the Indian subcontinent.
“Factors that will give India the edge over other offshore locations are scale and quality of labour,” said T.J.Singh, research director, Gartner.
“North American and European buyers of IT services have been the force behind a growing offshore services market and India is central to almost any discussion of offshore services delivery for these buyers”, said Mr T.J. Singh, research director, Gartner.
However, the report also warned that a deeper recession would see the delay of many non-critical projects and the cancellation of discretionary IT spending.
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