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For IT Spending & Budgeting Professionals

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June 21, 2004

Europe's Offshore Outsourcing Plans

Business Technographics Europe

by Manuel Ángel Méndez

with David Metcalfe, Andrew Parker, Joost van Kruijsdijk

This is an excerpt

Executive Summary

Enterprises in Western Europe have already embarked on offshore activities; 27% of them are significantly committed to vendors operating in low-cost locations like Mumbai or Budapest. Internal cost reduction is the key factor for 98% of execs surveyed when considering whether to go offshore, although communication, cultural, and geopolitical barriers keep a large percentage of firms away from offshore projects. Today, 66% of Western European firms surveyed that work with offshore providers use India-based vendors, mainly for custom apps development and implementation. The outcome? Offshore activity will result in jobs like software development and IT operations leaving Europe: By 2008, 12% of companies using or planning to use offshore providers will offshore more than 1,000 jobs.

TABLE OF CONTENTS

  • The Offshore Plans Of Western European Enterprises
    • Offshore Commitment Takes Off In Western Europe
    • Offshore Decision: Cost And Language Matter
    • Increasing Offshore Budgets Target Applications
    • Indian Vendors Drive Offshore Delivery
    • IT Operations And Developers Will Go Offshore
  • Supplemental Material

This is an excerpt

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