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.

1. Top 5 Reasons European Companies
keep Outsourcing IT services
Eurosia™ IT Insights – www.eurosia.eu

2. Merkel fought outsourcing…

3. … so did Hollande.

4. Di Rupo did not like it much...

5. … even Obama was not a fan …

6. … and yet this US$ 952 billion
market is sJll growing.
Source: State of the Outsourcing Industry 2013 (KPMG, HfS – December 2013)
App' Development
& Maintenance

7. So, why do EU firms keep
outsourcing their IT?

8. 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)

9. Reason #2: to increase their
organizaJonal flexibility

10. Reason #3: to access talent

11. “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)

12. Reason #4: to increase speed to
market

13. Reason #5: to survive

14. Lee Kuan Yew
Founding Father of modern Singapore

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Next Eurosia™ IT Insights:
7 Challenges execuJves face when
buying IT services abroad
(and how You can manage them)

16. E U R O P E A N S E R V I C E . A S I A N P R I C E
TM
relaJons@eurosia.eu