Given the poor global economic predictions, weak consumer demand, and continuing corporate uncertainty continue to impact outsourcing demand and consulting growth, according to the KPMG 4Q11 Sourcing Advisory Pulse Survey, which interviewed KPMG field advisers and global business and IT service providers.

Of the employers that are outsourcing, the study finds that they understand the necessity to invest in IT-enabled solutions but must change business and operating models to fully exploit the technologies' potential.

"Buyers are placing great emphasis on investing in IT, but given the economic uncertainty, all efforts undertaken will occur under watchful, cost conscious eyes," says Stan Lepeak, global research director in KPMG's management consulting group. "Buyers and providers are smarter, more experienced and less likely to enter into larger and more risky deals, and evolutionary innovations, such as cloud computing and targeted BPO, are changing the nature of what constitutes outsourcing."