The rise of IT Outsourcing in Europe

October 17, 2011: Today, Technology has touched every aspect of our lives. It has transformed the way we do business worldwide. New technologies keep coming up every day. Communications systems have grown rapidly in the last decade or so. Technology has made our earth a small place to live. Today, every corner of our globe is connected to each other.

In order to keep pace with growing technological advancements, we see that Information Technology is fast catching up. We also see that to keep pace with growing needs, the IT industry has embraced outsourcing.

More and more companies in Western Europe have taken to Outsourcing. They are Outsourcing their work to countries like Ukraine and Russia, mainly the Eastern European countries. As is evident these countries share the same European culture and languages. By doing so, these companies on the Western mainland Europe have saved millions of dollars in cost cutting.

Outsourcing practice can be divided into three heads. The first one is called

Project based Outsourcing. In this practice, we see that the contract ends after the project is delivered. The second is dedicated development center: It is the fastest growing strategy as far as Western companies are concerned. In this mode, developers work for long periods of time for the client companies. It is like having a virtual office for the client. The third one is Captive operations: This practice is more suitable for large Multinational companies. After they set up their office in eastern European countries, they hire local people. But most of the management team consists of people from the parent companies. All these 3 modes of outsourcing are being observed in Europe.

We also find that Outsourcing is happening everywhere. It is moving at breakneck speeds. Estimates suggest that the Outsourcing industry is all set to become a Multibillion dollar industry by next decade and it would provide employment to thousands of people from Easter European nations.

Outsourcing itself is of many kinds. Services rendered can be operational, technological or financial in nature. Outsourcing in short, keeps operational costs in control.

The other thing which needs to be addressed here is the success rate of Outsourcing. We see that the targets and specifications are met regarding the client requirements. Apart from immense financial gains, we also see that the projects are delivered on time and with a very high value of sophistication.

Outsourcing brings good news to the European countries, as it strengthens their economy and boosts development. IT Outsourcing is a big business and development nowadays.


Latest Columns

CIO’s review of IT outsourcing market in 2012

At the end of 2011, CIO magazine had predicted a couple of things for 2012 such as the end of cloud computing hype, migration of app development from offshore to in-house, relationship-oriented IT service providers and so on. At the end of 2012, CIO reviews its previous year’s predictions about the IT outsourcing market. A […]

Enterprise crowdsourcing: Heralding a new epoch in the BPO industry

Enterprise crowdsourcing has arrived in a big way in the BPO industry. This term was coined by Jeff Howe, a contributing editor at the magazine Wired. Outsourcing has had its share of controversies with allegations about the misuse of cheap labor being hurled from various quarters. Enterprise crowdsourcing been often associated with irresponsibility from the […]

Speak Your Mind