Offshore Outsourcing Trends in Europe

This recent article has a good summary on the trends of offshore outsourcing in Europe.

Interesting tidbits such as Belgium has the highest outsourcing rate at 81% and France the lowest at 63%! Who could imagine Belgium to lead the outsourcing trend in Europe?!

While 70% outsourced to lower costs interestingly only 49% agreed that offshore outsourcing was an effective cost saving tool. That leaves a full 21% that feels there is a questionable costs benefit in offshore outsourcing. Given the soaring euro this is quite unusual that such a large percentage find the cost benefits of offshoring to be nebulous.

Interesting to see logistics to hold the third largest share of the pie for outsourcing segments after computing and maintenance which have been the traditional leaders in offshore outsourcing.

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1. 70% of respondents reported outsourcing at least one business process to lower-cost countries;
2. 49% of respondents agreed that offshore outsourcing served as an efficient cost saving tool;
3. 33% pointed to better quality through hiring the specialists among the major reasons for outsourcing;
4. Computing / telecommunications (68%) along with maintenance (76%) and logistics (73%) are the largest outsourcing segments;
5. Belgium was found to have the highest outsourcing rate (81% of companies), while France was found to have the lowest take-up rate at 63%;
6. At the industry level, the finance industry is reported to be the most mature in adopting outsourcing; banking is considered to be the most focused on IT and telecommunications outsourcing with a 75% take-up rate;
7. Medium-sized companies and multinationals are the major users of offshore outsourcing;
8. The majority of respondents generally report positive experience they have had with offshore outsourcing.
9. 20% of European companies admitted intending to increase their outsourcing level within the next two years.
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