A Near-Sourcing trend in 2010 for the U.S.?

CIO.com recently published its predictions for 10 trends in 2010 (December 2009).  Chief among the “good news” is that expectations are that the market for outsourcing in 2010 will improve with the general economic recovery.

Trends expected for 2010, however, may alter the landscape for both customers and providers. Among the most interesting of the cited trends is the Offshoring to America. That said on-shore U.S. locations, particularly in economically distressed areas, are NOW beginning to look like relative bargains compared to other global markets. This will likely be particularly true for public sector outsourcing, where U.S.-based solutions are likely to get preferential treatment.

If the U.S. continues to keep up its “Weak Dollar” strategy in 2010, I believe that we will see an increase in the number of “Near-Sourcing” companies being created in the lower cost of living areas and lower-income tax areas of the U.S. —in states like Arkansas, Louisiana, Tennessee and Nevada.

Outsourcing to India, China, South America and Eastern Europe will still thrive but some of the risks associated with outsourcing to these countries might be mitigated by the use of some of the newer Near-Sourcing alternatives.

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