Market forces and organizational realities are driving outsourcing decisions today, Global Sourcing practice leader Aaron Oser observed in a recent interview with Nearshore Americas.

“The stars are somewhat aligned as far as outsourcing being here to stay,” he said. “The economic challenges are definitely there."

With stock and commodity prices down, many companies are keen to lower costs. However, they may already be running lean.

“There are diminishing organic options for companies,” Oser said. “They don’t really have the buildup of resources to help them in this time to drive innovation and also keep the lights on .… But there are reliable external levers that one could use outsourcing for.”

In such an environment, major providers of outsourcing services have to show they can move the needle in order to win new business.

“They’re all hungry,” Oser said. “But there is going to be a fair amount of energy that the supplier is going to have to bring to be able to prove that they can still extract value on the deals from either cost reduction or improving business outcomes.”

Read the full article on Nearshore Americas.