Thursday, November 26, 2009

Europeans Unhappy and Look Beyond India

According to Forrester Research at least 60% of the polled European companies are willing to outsource to destinations different from India.

The volume of India’s ITO and ВРО service reached 14 billion euro in 2008 with UK, Germany and France making 11, 7 billion. However not many European buyers show loyalty to Indian service providers. The polled companies plan to continue engaging outsourcers from different countries, but very few mentioned India as their preferred offshore outsourcing destination.

Analysts believe that language barriers and challenging tasks to organize cooperation with providers from other countries are additional barriers for the expansion of Indian service business in Europe. The outsourcing model successfully employed by Indian IT service providers on the North American market doesn’t looks successful in continental Europe. As Forrester Research analysts emphasize, business of European companies differs from the American model and optimal outsourcing schemes should vary in these regions as well. So far Indian IT service providers have employed the American model in Europe. In particular, they keep launching client support offices in their target markets in order to solidify their market position locally.

Source: CNews

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