In the early days of the recession, back in late 2007 and early 2008, many outsourcing industry experts were predicting that the forecast downturn could end up being a good thing for outsourcing vendors. The theory ran that end users looking to cut costs and improve efficiency would choose to outsource both IT and back-office functions.
The reality has proved somewhat different, and nowhere is that more apparent than in the financial services industry. Both the value and volume of IT services deals signed fell significantly in both 2008 and 2009, and there is little sign of a return to growth in the current year. The dreadful market conditions might have put an end to niche KPO vendors focused on the financial services industry, but they have proved far more resilient than many expected.
