What Will Cause the Next FAO Growth Spurt?
We don’t have a perfect view of the future. We can ascertain how many companies are evaluating FAO, the supplier capability/capacity, and the success and failures of the buyers so far; but it is not so easy to predict when these evaluations will turn into actual contract signings. One thing is clear: in today’s globalized economy, all global firms need to evaluate their sourcing strategies to ensure they are taking advantage of low-cost offshore talent and evaluating which global sourcing models work best for them. The next FAO growth spurt could be demand driven such as the economic and regulatory driven market we saw in 2002 or it could be supply driven such as we saw in 2005. If we see a catalyst for demand and supply driven growth in the same year, the growth will be explosive. Why? Because the next big year will be met by a much more mature market than we have had in the past. FAO is far from a mature market, but relative to 2002 the supplier base, the technology, the offerings, t
