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	June 22, 2006 Spanish IT Services Spending Forecast: 2006 To 2011 by Euan Davis with Andrew Parker, Sonoko Takahashi, Caroline Roeleveld-Hoekendijk	Average: 10  (1 rating)

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Executive Summary

Spanish firms buck the twin IT services trends of offshoring and outsourcing. Local service providers run the show. Offshoring remains extremely rare, as localized staffing costs match anything that the Indian vendors can bring to the table. But outsourcing continues to gather momentum — albeit slowly — as Spain's technology-literate financial services sector begins experimenting. Forrester expects that Spanish annual IT services spending will grow from €2.9 billion in 2006 to €3.9 billion in 2011 — with project-based services dominating. The market opportunity is small compared with the French, German, and UK markets, but local players play a fundamental role that offers lessons to service providers elsewhere.

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