Confidence in the face of turmoil
Making sourcing decisions in an economic downturn
The current economic conditions have had both a direct and indirect impact on sourcing practices. Many organisations appear to be in a state of paralysis in terms of effective decision making. There are nevertheless specific actions that organisations can take to review, refresh and reshape their sourcing strategies, contracts and relationships to reflect new economic and market realities.
These economic conditions have encouraged many executives to look at alternative service delivery models like outsourcing and offshoring as a means of addressing various short and long-term business concerns.
We believe that these models provide significant opportunities, but recommend taking additional care to assess and understand the complexities of an increasingly volatile market. Only then can executives make effective decisions that will stand the test of time.
In this paper, PwC examines how the economic downturn impacts on new decisions to outsource and decisions to renew outsourcing and offshoring arrangements.