Outsourcing industry is expected to grow in the year 2010. Outsourcing practices are expected to expand, that is according to the experts in the recent Web cast from IDC Canada, the Centre for Outsourcing Research and Education (CORE) and Prima Management Consulting on the impacts the recession has had on outsourcing in Canada. According to IDC forecasts that the overall Canadian IT outsourcing market is anticipated to reach almost $15 billion in 2010, this represents a growth of about 3.8 percent from 2009. Sebastien Ruest, vice-president of service and technology research at IDC Canada added that with the chipping away of the traditional outsourcing model, alternative outsourcing models such as remote infrastructure management, cloud and utility computing are forecast to grow by 5.4 percent in 2010. IDC anticipates financial services firms will lead the way, market interest in business process outsourcing (BPO) to grow, further increases in global offshoring and challenging economic conditions ahead in 2010. The constraint of capital will continue to drive CIOs to save more cash and avoid risk-taking by looking only one to two years down the road. Other 2010 trends pointed by Ruest are the following cloud-delivered services increasingly being seen as a means to drive better value in IT and HST (harmonized sales tax) creating some hesitation in the outsourcing sector. BPO will see the largest gain and cut in spending this year but Ruest also considers high interest in outsourcing from the manufacturing industry. The recession incites the need to reduce operating costs, which has the possibility to increase outsourcing demand, and recent outsourcing activity shows strong signs that companies are building cost-effective strategies and techniques or platforms to improve their competitiveness. The year 2009 was a strong year for outsourcing in Canada, which has made a positive market for 2010. Outsourcing in this problem is very helpful. According to Frank Hart, president of Regina-based Prima Management Consulting, Canada will expand its adoption of global outsourcing, but it will continue to linger behind the U.S. Hart also expects the number of RFIs and RFPs to increase in 2010 and he anticipates BPO as the next frontier for global sourcing in the near future. Outsourcing has gone too far. It has a great impact on the economic status of a certain country.
