The backlash against offshoring ended up hurting outsourcing. So says a new study by the market research firm Input. In 2004, IT outsourcing by state and local governments barely topped 2003's mark.
That's what happens when confusion mixes with politics:
- Confusion between "outsourcing" and "offshore outsourcing" fueled fierce political debate among the candidates campaigning during this election year ... Although the elections are over and the economy continues to improve, these political debates are expected to have a lasting effect on market growth over the next one to two years.
However, outsourcing is expected to speed up in the long term:
- "Retiring government employees, as well as archaic government legacy systems, are undeniable factors in the state outsourcing market," said James Krouse, manager of state & local market analysis at INPUT. "The increasing demand for outsourcing in the coming years will be borne out of necessity which politics will be unable to refute."