What will be the effect on the company business strategy if the financial crisis will hold on? Will we get worlds wide in a situation where you will see that the management will say “let’s do less with less”.

In several of the core markets served by offshore vendors, the current business slow-down is reducing demand for the underlying services, no matter who is providing them. Fewer mortgages are being processed, fewer plane reservations are being made, and fewer people are purchasing high-tech solutions that require technical support.. Why this happens? Because companies are scaling back their budgets, governments having huge dept and customers don’t have the same money to spend as before. 

  Report about the outsourcing market;

• In a Goldman survey from August 2007, tech execs said that outsourcing was their 10th highest priority. In the report is also described that  the IT spending index, based on a survey of 100 IT execs at Fortune 500 companies, came in at 65, down from 71 in the prior survey in April and below the year-ago mark of 73. In hard numbers ; 33% of tech leaders said they expected their tech-services budgets to shrink. Only 16% of businesses expect to increase spending on these services. 
• The Indian National Association of Software and Services Companies forecast revenue growth of 21 percent in 2008, down from 28 percent in 2007.  

 These signs can’t ignored and will have their effect on the off shore of work.