Still, outsourcing continues to grow, if at a slower pace than in recent years. Almost two-thirds of those surveyed, 64 percent, said they intend to increase their level of offshore outsourcing in the coming months. That's still a significant decline from the 86 percent who said that in 2004.

"It's still big growth, but it's not boom growth," said Weakland. "It's slow managed growth of the relationship."

Some 47 percent of those taking part in the survey also reported that they had "abnormally terminated" -- or fired -- an outsourcing firm or canceled a contract during the previous year. Just 21 percent said they had done so in 2004. Most affected where onshore providers.

"That tells me that buyers are taking a critical look at their relationships," said Weakland.