top 5 reasons european companies keep outsourcing it services
DESCRIPTION
Many politicians have fought the outsourcing of services and manufacturing. Furthermore, unemployment is high in the Western world, especially in Europe. Still IT services outsourcing and BPO represent a US$ 952 billion market. And it keeps growing. Why? This 16-page document gives a (very) high-level overview of the top 5 reasons pushing companies especially in Europe to keep outsourcing. What do you think - is it good, bad, just a natural consequence of globalization? Feel free to react and share your thoughts.TRANSCRIPT
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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