"We're at a bifurcation point in the outsourcing industry, and the future is cloudy," says Fersht. "Can companies keep up the relentless charge of offshoring? Will Indian providers truly invest in domestic facilities? What effect will the outcome of the election have on outsourcing? I don't think we can answer those questions."
What is clear is it that IT leaders are beginning to think about sourcing differently, says Fersht. "From 2002 to 2008, it was all about getting as much to India as possible," he says. "But we have smarter CIOs coming out of the recession who realize this is a long game. It's not all about offshore outsourcing. It's about building smarter global sourcing strategies."
Stephanie Overby is regular contributor to CIO.com's IT Outsourcing section.Follow everything from CIO.com on Twitter @CIOonline, on Facebook, and on Google +.
Read more about outsourcing in CIO's Outsourcing Drilldown.
