How companies will behave in 2009?

Almost everyone was waiting for depressing 2008 to end and it did end like any other year. But the question now stands how companies will behave for a software company to which it outsource works? Here are some of few decisions that client to a software company will take in 2009.

• Price will not be a major criteria especially in Europe, I feel. Any offshore will be in infinitely cheaper than what they are doing now especially in Euro terms and so, people will take the easy plunge with known names.
• What will matter is speed. Who can transition faster. Who can bring in the savings faster. Who can ramp up faster.
• There may be other routes to monetary nirvana that the clients will crave. Financial engineering will rule. Whoever can promise payment holidays for a while will win. 

• Almost all CIOs in large corporations will see budget cuts in 2009. There is no way around that.
• Almost all such CIOs will consider offshore sourcing if they are not already doing it. If they are already at it, then they will ramp it up immediately.
• Europe will no longer be the sleeping tiger. Europe will have to do outsourcing at a pace five times as fast as America did or they are doomed. So much for their lethargy all these years.

• Purchasing will hold the upper and perhaps only hand. Of course, CIOs will pretend to be deciding which offshore provider, for political reasons of give and take. Given their lack of experience among CIOs, this will result in several failed deals and projects.
• Offshore vendors will likely cut back in anticipation of a lean year and be lean considering the real pressures from the market. This could mean some of us wont be ready for the deluge in the market when it comes shortly.
• Pre Sales people will sell deals since deals will have to be done to save those CIOs their jobs and those CFOs their companies. It then boils down to delivery. Which is where we will all come up croppers. Where do you generate the capability to manage a hundred million dollar project? Cant grow that on trees, can we now?
• I will be busy...

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