October 28, 2009

European Offshoring Shows Moderate Growth

by Sudin Apte

with Christine Ferrusi Ross, Philipp Karcher

Executive Summary (This is a document excerpt)

Offshoring of IT jobs from Europe shows signs of slow growth as firms try to cut costs. While the percentage of IT services that go offshore — especially from the non-UK market — is very small, Forrester's Enterprise IT Services Survey, North America And Europe, Q2 2009 does show an improvement in adoption of global delivery. Furthermore, our research indicates that many European firms are changing their preference from nearshore Eastern Europe to a more mainstream offshore location — India. To make this transition smoothly, sourcing professionals need to focus internally on overcoming inherent issues like complex approval and procurement processes, garnering top management support, and ensuring they send enough volume of work to make the initiative worth the effort involved.

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