The outlook for the U.S. and global economy is looking ominous. Economists are converging on the opinion that either the U.S. economy is already into a recession or will soon get into one. Other indicators aside, the Fed today has marked down the GDP growth rate from 2 to 1.3 percent and estimated the core inflation to be in excess of 2 percent for this year. The impact on the global economy would be felt sooner than expected.The global outsourcing companies, which look at the U.S. market as the prime source of revenue, have started getting nervous. I am told that at the recently concluded Nasscom Leadership Summit in India, the preponderant discussion topics centered on innovation and the potential of the European and Asian markets. Beyond the impact of the sliding dollar, the Indian providers are looking at these markets to maintain the momentum of deal flows. But the larger point is that in 2008, the effects of globalization would be played out to a fuller extent and the state of the U.S. economy presents a perfect background for that to happen. This will be the year when the shift of power from the U.S. to the rest of the world will be seen in a more manifest manner. One already got an eyeful of this when funds from China, Saudi Arabia, Abu Dhabi and other countries bailed out large American financial powerhouses from the brink of bankruptcy. The timing is now perfect for a large flow of services from the U.S. to countries like Belarus, Mexico, Russia, China and others. A look at the Global Services 100 list would make it evident that there is a robust supply side emerging in these locations. This is my honest take: If the senior executives running global businesses have indeed understood the cost benefits and transformational value of outsourcing, then despite the recession, the global services industry will outperform this year. This is what spurs my enthusiasm as I take over the editorship of this magazine. I invite you to listen to eminent economist Clyde Prestowitz, President, Economic Strategy Institute and author of Three Billion New Capitalists: The Great Shift of Wealth and Power to the East, who would deliver the keynote at our Global Services Conference 2008 (in association with neoIT) at NYC on March 12. Clyde would be talking about how companies could compete and thrive in a global services economy. Join in by registering for the conference at www.globalservicesconference.com.