Europe’s global sourcing market: trends, growth and prospects

Europe’s global sourcing market: trends, growth and prospects

2010-11-17 13:59:34 - UK is the largest and most evolved global sourcing market in Europe but still has significant untapped potential according to latest market report

The Information Technology Industry Development Agency (ITIDA) has just launched a new report by the Everest Group: ‘Europe’s global sourcing market: trends, growth and prospects’.

The study, researched independently by the Everest Group, provides an original and comprehensive analysis of the current state of the European outsourcing market, and an assessment of its future potential. The study also investigates the different outsourcing locations that serve Europe, comparing the relative merits of each.

The ITIDA-commissioned study will be showcased at the NOA’s 2010 Sourcing Summit in London on 16 November.






Notably, the UK was found to be the largest and most evolved global sourcing market in Europe with 36% growth seen between 2004-2009, largely believed to be a result of cost pressures and the abundance of English speaking supply locations.

Whilst the UK is a relatively mature global sourcing market, the report also concluded that there is still significant untapped potential within the market; and the UK’s estimated global sourcing opportunity is $55-60bn; 5-6 times the current market.

Eric Simonson, Managing Partner at the Everest Group, said: “The European global sourcing market has assumed an increasing significance over the past few years, spreading across countries, verticals and services. The potential is huge; we estimate the European global sourcing opportunity to be US $250-300 Bn. From our research, Egypt demonstrated a number of strengths to serve Europe including its ability to provide multi-lingual skills at competitive costs, and also offers a gateway to the Middle East for European investors.”

The report also looked at the major outsourcing locations that serve Europe, comparing the relative merits of each across key areas including talent pool, costs and risks. Within this comparison it was noted that the global outsourcing landscape has evolved rapidly, with over 75 cities currently serving Europe across four main regions; Central and Eastern Europe (CEE), Africa, South Asia (including India) and Latin America.

Of these, Egypt – with its skilled talent pool - was highlighted as one of the most favorable locations that can support a credible play across multiple European languages at moderate scale. Furthermore the study found that Egypt is one of the cost-competitive locations to serve the European market.

Eng. Yasser ElKady, ITIDA’s newly appointed CEO said: “This report gives excellent first-hand evidence of Egypt’s positioning as a multi-lingual and a cost-competitive, location to serve European businesses. We are going forward with our programs to enhance the capabilities of our talent pool which is a corner stone to our success.”

To download a full copy of the report, its executive summary, or to see a video of Eric Simonson talking about the findings, please go to: www.egypton.com