At the start of 2008, we have once again surveyed the lawyers in Morrison & Foerster’s Global Sourcing Group
in key markets in the United States, Europe, and Asia. This update collates Morrison & Foerster’s view on the state of the global outsourcing market and our lawyers’ experience with a wide range of sourcing projects in a number of geographic and sectoral markets.
This year, three of the partners in our Global Sourcing Group – based in Asia, Europe, and the United States –
comment on the state of the outsourcing market from their viewpoint and suggest some trends to watch out for in 2008. Their views are based on what they have seen in their outsourcing projects over the past twelve months, as well as on the views expressed by service providers, outsourcing consultant colleagues, and our clients.
Executive Summary of Outsourcing Trends
Cost, not value
An economic slowdown will see a move back towards cost-driven outsourcing – despite the fact that, over the long term, service-driven or value-driven deals tend to deliver more stable, successful relationships.
Post-signature Project Management
We see greater emphasis on post-signature support, governance, supplier management, and the role of the retained function.
Pharma and Life Science Outsourcing
As the pharma industry sharpens its focus on the core competencies needed to sustain its pipeline of new drug candidates, we expect to see increased pharmaceutical outsourcing in 2008 and thereafter.
As all companies seek to reduce their corporate carbon footprint, we expect to see a greater take up of outsourced services that deliver “Green IT”.