Trnds of IT outsourcing industry in 2008

The sub-prime mortgage crisis and the weakening of the US Dollar shocked this industry.Specialy Vendors with small and commoditized services have a tough time really and they are going to be faded away if they can survive the low-cost and low-margin game.So, cost cutting is going to be the one of the most significant trend for this industry for this financial year.Competitive talent at lower wages than the preferred locations, Infrastructure and realty advantages, Lower attrition and Lower operating costs will drive vendors to move to tier IIICities. Well this trend id not very new anyway.Client base will be diversified aggressively, i.e. focus on US market will go down.And cheers, domestic IT outsourcing market is going be hot and happening this year.Vendors will start looking beyond fortune list and will go for contracts with mid-sized companies in the US and Europe market.Especially for back-office and transaction processing services but not limited to the, software and BPO industry will integrate more closely.And finally, KPO industry will move to staff augmentation to value addition and will be much more matured, responding to the need of the market.