When making decisions about IT offshore outsourcing, the state of the U.S. economy looms large. The effect of exchange rates, interest rates, IT employment levels and even domestic commercial office vacancy rates will affect your onshore, offshore or nearshore strategy. America is growing more and more dependent on lower cost offshore services. So what is an offshoring decision-maker to do about controlling cost in this U.S. economic downturn? That depends on how the economic cycle affects your business. Because consumer spending leads the economy up and down, recent weakness at Tiffney and Target suggests both ends of the consumer spectrum are being affected, so we may be early in the cycle. In his article Understanding the Economy (Inc. Magazine in December 2007) Joseph H. Ellis says, People worry that a recession is coming. But buy the time one arrives, most economic harm has already happened. He says dont be afraid to do your own economic detective work. You may gain a new perspective in cyclical patterns and cause-and-effect relationships you didnt realize existed. Here are four indicators to consider.
Exchange rates: Analyses of major IT software outsourcing...
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