With wide acceptance that Western markets are set to weather an extended ‘downturn’, which has in turn, slowed growth somewhat in previously booming Eastern markets, we explore what current trading conditions mean in practice for both clients and providers of outsourced services.

Media the world over is tirelessly reporting the impact and aftershocks of the US sub-prime crisis consequent credit crunch. Add into the mix escalating oil prices, food prices and inflationary pressures now being experienced around the globe and unsurprisingly many businesses are re-scrutinising both operations and balance sheet in attempts to prepare for tough times ahead.

Naturally, the banking industry has been worst affected with figures to March this year showing a decline of 46% in profits against the previous year and employee layoffs over 34,000 across the global industry and set to rise yet further. However, the domino effect of the crisis in world banking has toppled over to affect other industries: construction, manufacturing and retail to name just a few.

But the news need not be all bad. Outsourcing has offered businesses a clear route to achieving competitive advantage through the last 3 economic down cycles. Looking to expert providers to support non-core activities presents a winning combination of benefits: the opportunity to reduce cost and increase efficiencies, but perhaps more importantly the outsourcing equation can free up vital time and resource to focus on mission critical, revenue generating activities that pave the way to sustained growth and the protection of shareholder value.