By Kalen Smith, Big4.com Blogger

According to KPMG’s fourth quarter Sourcing Advisory Pulse Survey, unpredictable economic conditions continue to have an impact outsourcing providers. These firms are under increased pressure to cut costs.

As economic conditions become more uncertain, these providers are under greater pressure to improve their IT infrastructure. They are likely to change their business models in order to use the technology to its fullest potential.

Despite the increased demand for new technologies to improve efficiency, businesses must find new ways to cut costs as they invest in new capital. According to Stan Lepeak, KPMG global research director, customers are becoming more astute and cautious as they are forced to respond to economic challenges.

About three quarters of all advisers and providers cite that the economy is likely to have the biggest impact on business decisions and purchasing decisions in the global economy. The economy is likely to have an even larger impact in Europe, where economic conditions are more uncertain.

Although the economic conditions in Europe pose the largest concerns for outsourcing providers, indications of an economic recovery are transpiring in North America. About 53 percent of advisers and and 45 percent of providers believe that improving economic conditions in the global economy would be the single largest driving force to their respective industries.

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