WITH THE GLOBAL ECONOMY getting back on its feet, the outsourcing industry is expected to continue booming, with worldwide revenues seen reaching $412 billion this year.

According to a report by information and communications technology research and advisory firm XMG Global, ?outsourcing will present its full potential once more in 2010.?

This time, however, outsourcing would be more than just a means to cut costs, XMG said, but an actual business model aimed at boosting both efficiency and profitability.

?In the face of global competition, governments of major outsourcing destinations will formulate new rounds of resolutions to improve business environments and promote new investment locations,? XMG said.

The research firm said India and China would be the preferred outsourcing destinations this year.

As the economy improves, XMG also predicted a skills shortage by the second quarter, as companies start to recruit again.

XMG said competition would be stiff not only for skilled and competent workers, but also for customers, particularly those in the telecommunications sector.

?Whether or not there is tangible recovery of the global economy in 2010, XMG is confident that the telecommunications industry globally will remain healthy and vibrant. Investment aggressiveness as well as management reorganization of telecommunication equipment vendors would display renewed competition this year and beyond,? the XMG report said.

?Industry players are expected to beeline in their usual frontline markets (North America and Asia), offering newly developed technologies in their portfolio.?