Will the industry outsource more? I think it depends on the client base.
Sentiment: NEGATIVE
In the long run, outsourcing is another form of trade that benefits the U.S. economy by giving us cheaper ways to do things.
The important thing about outsourcing or global sourcing is that it becomes a very powerful tool to leverage talent, improve productivity and reduce work cycles.
There are companies that are cutting their costs by over 50% by offshoring.
Outsourcing is inevitable, and I don't think it's necessarily treating people like things.
Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation.
The other part of outsourcing is this: it simply says where the work can be done outside better than it can be done inside, we should do it.
We think the managed security services opportunity is enormous and so we have been an active participant and probably the largest firm in this space outside of an IBM or EDS, which does large outsourcing contracts.
I don't think we will put higher-ed out of business. I think we'll evolve it. More access, higher quality, lower costs, more global reach.
I think if companies start reinventing themselves and focus on the customer experience more, they will win out in the end.
If you deprive yourself of outsourcing and your competitors do not, you're putting yourself out of business.