After several years of believing that discretionary spend would come back into the marketplace, it appears that we are, in fact, experiencing an uptick. This increase in demand is definitely welcome after recent years of suppressed demand.
The question is: How long will this trend continue and will we move back to the heady growth of days of yore?
The answer is yes and no. Yes, the growth trend is likely to continue. We seem to have an improving economic condition in both North America and Europe for both structural outsourcing as well as discretionary spend. I think we can look forward to modestly improved growth rates.
However, we need to remember that we’re at a very different level of market saturation for outsourcing services than we were five years ago. It seems unlikely that the market will return to the 20+ percent growth rates. I think what we’re looking at today is a small increase in growth, not a large one.
Having said that, let’s take what we can get and celebrate! As the French Mardi Gras saying goes, let the good times roll — but not to the point that we wake up with a reality hangover.