For IT Services Professionals

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Executive Summary

European firms will continue to grow their use of offshore resources as an effective way to achieve cost savings and build successful IT operations. Application services like custom development and software maintenance are the main source of revenues for offshore providers today; more than a third of European firms surveyed currently send these types of activities abroad. Other services, such as remote infrastructure management and packaged app implementation, experience lower levels of demand currently, but will generate significant demand in the next 12 months. Almost 70% of firms plan to send packaged app implementation work offshore, and 45% say that they will do so for remote monitoring services. More importantly, offshore providers now clearly meet European firms' expectations when it comes to getting the job done — our respondents gave a strong endorsement of the quality and cost of service they receive. However, our survey marks out domain expertise and communications skills as black spots that offshore vendors need to address.

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