Do the advantages of outsourcing currently outweigh the disadvantages?
Current market conditions offer potential outsourcers both opportunities and threats. The U.S. remains the largest market for suppliers, measured in total contract value, but it is also the country hardest hit by the crisis. The huge drop in demand combined with a devaluating U.S. currency against emerging economies, causes major concerns in boardrooms of suppliers that operate from India, the Philippines, China or South Africa. Currency fluctuations can be covered in a contract, but the dependency of the U.S. asks for diversification of the business model. For this reason, many foreign suppliers currently are strongly driven to gain a foothold in continental Europe and other markets. Dutch organizations that dare to outsource now can have positive consequences. In order to obtain the first customers, these suppliers will soon be inclined to “buy in” by offering favorable conditions. Later, they hope to catch up with the loss on the first assignments with new contracts. However, what m
