Judging from the perspective of ITO services buyers and services providers, the following trends and changes are anticipated in 2011

1. 2011 European IT Outsourcing Predictions and Expectations www.softheme.com

3. Services Providerswww.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

6. Service integration will help achieve innovationwww.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

7. Trends and Changes in 2011 Services Buyers An increased demand for outsourced IT services from the public sector. In 1Q 2010, public sector contracts stood at over €9 billion and are expected to increase in 2011. In the UK alone, public sector gained a 75% share in the nation’s outsourcing spending It is expected that the demand to explore and utilize outsourcing opportunities in Europe will increase due to recent turmoil in such countries as Ireland and Greece as well as economic uncertainties in other states. www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

8. Trends and Changes in 2011 Services Buyers A shift from mere cost saving to access to qualified and lower-cost IT resources. In 2010, Western Europe faced a significant shortage in IT skills and resources. In 2Q 2010, staff skills in C#, SQL, .Net and Java were in short supply, with the number of related jobseekers in decline. www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

9. Trends and Changes in 2011 Services Buyers A shift from mere cost saving to access to qualified and lower-cost IT resources. 2010 showed a significant increase in IT workforce and skills in Eastern Europe: Growth in the number of IT specialists More than 20% of outsourcing companies admitted their plans to continue outsourcing their IT function in 2011 to get access to better qualified IT resources outside their home countries. www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

11. strong R&D potential of former USSR nations

12. strong language skillswww.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

13. Trends and Changes in 2011 Services Buyers Service integration will help achieve innovation. In 2010 and previous years, many companies failed to achieve innovation in their outsourced operations, because they typically thought that transferring an IT project to be completed by the 3d party should enable them to focus on their core competencies. In 2011 more Western European IT leaders are expected to realize the importance of integrating the outsourced project management, orchestration and delivery, thus gaining full control of their sourced projects. www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

15. Innovative outsourcing engagement models will hit the mainstream

16. No more client-silo approachwww.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

17. Trends and Changes in 2011 Services Providers An increased focus on SMEs. In 2011, an increased demand to adopt outsourced IT services will come from the SME segment and providers should be ready to anticipate smaller and, thus, less profitable deals. www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

18. Trends and Changes in 2011 Services Providers Innovative outsourcing engagement models will hit the mainstream. In 2011, Western European companies will be looking for a provider with the capacity to take over the entire product or application development process, and in some cases, help manage the entire business function. www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

19. Trends and Changes in 2011 Services Providers No more client-silo approach. As businesses aim to learn more best practices by sharing knowledge with their peers across different industries, IT providers will be challenged to transform their client-silo mindsets and encourage collaboration between clients from various industry domains www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

20. Trends and Changes in 2011 To conclude with, in 2011 European ITO will remain a highly demanded practice with some significant focus shifts towards agility processes optimization transparency of transactions and payments innovation cloud www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations

21. Thank you! Questions?->info@softheme.com 2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions www.softheme.com»Outsourcing to Softheme™