European service providers are building up their offshore capabilities fast. Most large and midsize providers are already providing their customers with offshore options and are building up presence in India and nearshore locations with linguistic and cultural similarities. This trend covers northern, central, and southern Europe, although customer acceptance is highest in northern Europe. "European service providers have taken a strategic approach to global sourcing," said senior analyst Mette Ahorlu, IDC's European services group. "They not only react to a competitive threat but see offshore as a strategic part of their business model and help drive the market."

The study looks at offshore strategies, offerings, and competitive threats for the Europe-based service providers, based on a survey among a representative proportion of this vendor community.