The Hindu Business Line : 'India is hot with European firms too'

INDIA has emerged as a hot offshoring destination among the Western European firms, with 66 per cent of surveyed companies that already use offshore providers working with India-based vendors, according to a Forrester report.

The report titled — Europe's offshore outsourcing plans — noted that the enterprises in Western Europe had already embarked on offshore activities and said that 27 per cent of them are significantly committed to vendors operating in low-cost locations such as Mumbai and Budapest.

"Today 66 per cent of the Western European firms, surveyed, that work with offshore providers use India-based vendors, mainly for custom apps development and implementation," the report said.

Internal cost reduction is the key factor for 98 per cent of executives surveyed when considering whether to go offshore, although communication, cultural and geopolitical barriers keep a large percentage of firms away from offshore projects, the report said.

To find out firms' plan for offshore activity, Forrester surveyed 247 IT decision makers at firms in France, Germany, the Netherlands and the UK.

Eighty nine per cent represent companies with more than 5,000 employees, and 75 per cent of the surveyed firms have annual revenues greater than Euro one billion.

The survey found that 27 per cent of the European firms have already made a significant commitment to offshoring IT or business services and have looked at low-cost options from Poland to India.

More Stories on : Off-shore Development | Software

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page