Worldwide Outsourcing Spending Will Approach $180 Billion In 2004.As the incentives driving worldwide outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. shift from optional decisions based on cost savings to almost mandatory matters of survival, the worldwide market will add more than $60 billion to its coffers. IDC reports revenues will increase from $116 billion in 1999 to $177 billion by 2004. As the worldwide outsourcing market continues to grow, IDC believes it will begin to transform. Changes that IDC expects include increased acceptance of equity stakes as a form of payment, more use of offshore outsources, a shift in focus from present needs to future requirements, and shorter contracts. "Because of the quick pace of technological advancement and rapidly evolving business models, companies will become fearful of being locked into a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contract that may be obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. long before it comes up for renewal. As a result, they'll demand shorter contract lengths," Doyle said. "They'll also re-evaluate the long-term contracts they signed in the mid- mid- pref. Middle: midbrain. 1990s and possibly try to renegotiate re·ne·go·ti·ate tr.v. re·ne·go·ti·at·ed, re·ne·go·ti·at·ing, re·ne·go·ti·ates 1. To negotiate anew. 2. To revise the terms of (a contract) so as to limit or regain excess profits gained by the contractor. based on their current IT needs and ebusiness strategy." The United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. represents the biggest opportunity for outsources. US outsourcing spending will jump from $56 billion in 1999 to $87 billion in 2004. Throughout the five years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time United States will account for almost half of worldwide spending. Banking spends more than any other US industry on outsourcing, but the federal government is increasing its spending faster than any other industry. In 1999, large companies accounted for 49 percent of US outsourcing spending. However, IDC believes smaller companies will increase their outsourcing activities, and by 2004, large companies' share of US outsourcing will fall to 43 percent. "Many small firms don't have the skilled IT staff needed to harness Internet and other advanced technologies. To make the problem worse, short technology life cycles and a fast time to market for products and services require quick action," Doyle said. "Because small companies can't take the time to hire and train their own workers, they are more frequently turning to outsourcing to access skills and technology." |
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