for me, reciprocal links are not dead. it only happens that search engines are looking more of links embedded in texts, however, so long, as you link with related, legitimates sites, there would be no negative effect on this in the next update.
i have been doing link building since 2003, and many clients are ordering reciprocal linking,i have not heard them complaining, although, we really specify the grounds and limitations, as well, as hammering which sites are to be contacted for link exchange. it doesnt matter if you deal with reciprocal link change, or non reciprocal link exchange. sometimes, people just go with the trends.
well, were dealing with outsourcing too. IM me for further questions.
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