Top 5 Reasons European Companies keep Outsourcing IT services
Eurosia™ IT Insights – www.eurosia.eu
Merkel fought outsourcing…
… so did Hollande.
Di Rupo did not like it much...
… even Obama was not a fan …
… and yet this US$ 952 billion market is sJll growing.
Source: State of the Outsourcing Industry 2013 (KPMG, HfS – December 2013)
App' Development & Maintenance
So, why do EU firms keep outsourcing their IT?
Reason #1: to save money
Sources: NASSCOM, service providers (Accenture, Altran, Cognizant, Steria-‐Sopra), Eurosia™ data
*Include mgt and ops overhead, recruitment/retrenching costs, salaries & benefits
Fully-‐loaded* esJmate of a 5-‐yr socware engineer’s daily cost in the Benelux (EUR / manday)
Reason #2: to increase their organizaJonal flexibility
Reason #3: to access talent
“There will be a shortage of 700,000 IT professionals in the European Union by 2015” Mrs. Neelie Kroes Vice-‐President, European Commission
Source: Alarm over skills shortage in Europe (Financial Times, May 26, 2013) Source: European digital skills shortage looms (Wall Street Journal – March 22, 2012)
Reason #4: to increase speed to market
Reason #5: to survive
Lee Kuan Yew Founding Father of modern Singapore
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