IT and BPO outsourcing could grow 600 per cent by 2020 - Randstad Technologies News
With 1 in 10 of its IT and business processes outsourced, a new report published recently, revealed that the UK is the most mature country in Europe. On the other hand, new opportunities were still available for outsourcers as an estimated increase in outsourcing of 600% by 2020 has been revealed. This is also suspected to have an impact on IT jobs related to outsourcing in the UK during the next decade.
The report, named Europe's Global Sourcing Market: Trends Growth and Prospects, was the initiative of research consultancy firm Everest in conjunction with ITIDA (Egypt's IT Industry Development Agency). It says that the driving forces for this market increase, as well as predicted growth of 1,000% for most countries in Europe are; an increasing expenditure and competitive pressures, an aging population leading to a shortage of IT skills, the global growth of companies and an increasing ‘proof of concept' of global sourcing combined with a growing acceptance within the public sector and government.
Numerous countries such as Germany or France have a higher potential growth of about 1,000%. This can be explained by the fact that their markets are less mature than that of the UK.
Central and Eastern Europe, Africa, India and South East Asia and Spanish-speaking countries in Latin and Central America are currently the geographic markets that are most likely to pick up business.
Countries such as Poland and Hungary are not the most cost-effective providers but offer multi-lingual services and skills.
French and Dutch are often the specialty of West and South Africa, while Egypt has a balanced offer of European languages added to the French specialty.
India also has a low cost offer and is one of the 3 largest countries in terms of language and skills talent pool (with Egypt and Poland).
However, other parameters have to be taken into consideration when outsourcing to countries outside the EU such as political instability.
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