Introduction

In the last two years, there has been a lot of discussion in the outsourcing space concerning the negative price impact of recession. Also, much skepticism prevails over the savings proposition rendered by service providers given the annualized inflation of five to eight percent in several offshore delivery locations such as India, Philippines, and China.

However, what has not been pointed out sufficiently is the fact that in spite of these seemingly constricting factors, some providers not only struck win-win deals but also sustained revenue and margin growth in the middle of recession. These providers who bucked the trend must have done something different to be counter-cyclic. If so, what were those strategies and are they replicable? This viewpoint outlines some of the recession led service provider strategies which are also shaping the next generation sourcing space.