LUV changes everything

21 January 2010
The recession is a lot like love – and not just because you seem to wind up broke at the end of it. Well, technically it is more like LUV, as this is what economists believe the recovery from the recession will look like.
 
 Those of us in Western Europe can expect a L-shaped exit from recession – long and slow. The recovery of the North American economy is expected to be a slower U shape. And the BRIC and emerging markets anticipate a quick V-shaped turn around. According to law firm Morrison & Foerster this will push the three economies further out of alignment and have an impact on outsourcing. If emerging nations recover faster than the West, it may encourage more spending on outsourcing in emerging areas to take advantage of these areas of growth. And for vendors it will mean having to consider different pricing strategies for different parts of the world. The company is also predicting companies will be examining the results of Pepsi and Anheuser-Busch’s collaborative procurement deal in great detail to see if it can be replicated in other sectors.
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