Monday, November 23, 2009 | Outsourcing News |
A recent survey conducted by Forrester Research indicates that outsourcers in Continental Europe feel the outsourcing model utilized by Indian IT service providers is “not working”. The survey was conducted during the last quarter and the first month of this quarter. A large portion of the firms surveyed indicated that they sourced hardware, software and people from different locations. 60% of the firms, however, said they still outsource to companies in India. Principal Analyst of Forrester Research, Sudin Apte, commented on their findings:
“Although Europe offers a lucrative opportunity, the success rate for Indian companies has been low and ramp-up of operations has been slow.”
The majority of the outsourcing firms surveyed said they did not expect IT budgets to be any cheaper in the UK, France and Germany – with “even fewer” considering India as an offshoring option.
The study by Forrester research cites a “highly federated decision making process”, complex procurement processes, and language barriers as the major challenges outsourcing service providers face in Europe.
“Most companies in Europe are more pan-European than global,” said Apte. “Many Indian IT companies confuse cultural compatibility with local presence.”
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