Recession could be straw that breaks the SME outsourcing sector

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Following a couple of blog posts I recently wrote about SMEs and the outsourcing sector I thought I should highlight more research suggesting small businesses are ready to significantly outsource IT.

According to the article SMEs do not want to take the risk of paying large sums up-front for hardware and software, but rather have the suppliers do that.

Also large suppliers, traditionally focused on the corporate sector, are weighing up their options in the SME space.

With competition hot and the corporate spending freezes of late leaving indelible marks on the large suppliers the want to broaden their services to reduce dependence on one sector.

TCS, for example, has said it is running a trial of SME software packages in the cloud in its native India. If successful it could come to the UK.

So has the recession created a match made in heaven. Or is it just a flirt being led by the suppliers?

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I think that many jobs will be outsourced in the next 1-2 years as freelancing becomes the future of doing work. Not only is outsourcing a good way to cut cost, but given the right team, it is also getting value for less -- which many small businesses need in these tough times. I don't know with IT though, specially with more businesses finding value in cloud computing. Everything we do will be in the cloud and we can only wonder what the future of work will really look like.

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This page contains a single entry by Karl Flinders published on June 17, 2010 10:46 AM.

Increasing numbers of workers distracted by World Cup was the previous entry in this blog.

BT strike ballot could ignite competition is the next entry in this blog.

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