Europe took the lead over Americas and now is the world’s largest it outsourcing market, both in the number of major contracts signed and in their total value.
In the past year European share of the IT outsourcing market showed impressive growth and even left both Americas far behind. While American companies signed 194 contracts, worth €21.3bn (£16bn), Europe settled 220 major contracts for €32.7bn (£24.5bn).
According to Duncan Aitchison, TPI Europe president, the reason behind such a leap is the rising popularity of the outsourcing model in the countries, traditionally avoiding it.
Apart from the well-established outsourcing market in the United Kingdom, Northern European countries like Germany, Netherlands, Switzerland, Sweden and France enhanced their outsourcing activity lately. Compared to 2006 rates, the number of contracts in Europe has surged by 31%, while the worldwide increase amounts to mere 13%.
The global market keeps growing. The last quarter of 2007 brought contracts for more than €12bn (£9bn), and proved to be the strongest one in total value over 11 years. According to Aitchison, the similar market growth is expected in Europe and Asia-Pacific region. According to Mark Kobayashi-Hillary, director of the National Outsourcing Association, the main reason for such outsourcing boost is the global credit crisis, which is illustrated by the companies’ desire to save money in the first turn rather than to build strategic partnerships.
All these seem to facilitate nearshoring and multisourcing trends. IT buyers from Western Europe are quite likely to find providers from Eastern Europe the most convenient partners due to their proximity, both cultural and geographical, let alone their renowned expertise in complex software engineering. With strong resource pool, stability in terms of employee retention and market position, such companies as EPAM Systems, the largest IT outsourcing services provider with development centers across Central/Eastern Europe and Russia, gather momentum in setting the highest delivery standards.
Source: Computing
In the past year European share of the IT outsourcing market showed impressive growth and even left both Americas far behind. While American companies signed 194 contracts, worth €21.3bn (£16bn), Europe settled 220 major contracts for €32.7bn (£24.5bn).
According to Duncan Aitchison, TPI Europe president, the reason behind such a leap is the rising popularity of the outsourcing model in the countries, traditionally avoiding it.
Apart from the well-established outsourcing market in the United Kingdom, Northern European countries like Germany, Netherlands, Switzerland, Sweden and France enhanced their outsourcing activity lately. Compared to 2006 rates, the number of contracts in Europe has surged by 31%, while the worldwide increase amounts to mere 13%.
The global market keeps growing. The last quarter of 2007 brought contracts for more than €12bn (£9bn), and proved to be the strongest one in total value over 11 years. According to Aitchison, the similar market growth is expected in Europe and Asia-Pacific region. According to Mark Kobayashi-Hillary, director of the National Outsourcing Association, the main reason for such outsourcing boost is the global credit crisis, which is illustrated by the companies’ desire to save money in the first turn rather than to build strategic partnerships.
All these seem to facilitate nearshoring and multisourcing trends. IT buyers from Western Europe are quite likely to find providers from Eastern Europe the most convenient partners due to their proximity, both cultural and geographical, let alone their renowned expertise in complex software engineering. With strong resource pool, stability in terms of employee retention and market position, such companies as EPAM Systems, the largest IT outsourcing services provider with development centers across Central/Eastern Europe and Russia, gather momentum in setting the highest delivery standards.
Source: Computing
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