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Vendor Survey: Europe-Based Service Providers Sharpen Their Offshore Strategies

Product Type: Market Research Report
Published by: IDC
Published: May 2006
Product Code: R104-26020
Description

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.

Table of Contents
Table of Contents
IDC Opinion
In This Study
Methodology
Introduction
Situation Overview
Offshore Partnerships Are Only an Intermediary Step
The Strategy is for Nearshore/Offshore Mix
Figure: Countries Used by European Service Providers in Global Delivery Models
Future Outlook
Drivers and Barriers
Price Still Main Driver - But Access to Skills Also Strong Motive
Figure: Main Reasons for Using Offshore Resources
Education of the Market Important to Overcome Barriers
Figure: Customer Concerns About Offshore Resources
No Clear Correlation Between Price Pressures and Offshoring
Offerings
Figure: Use of Offshore Resources in Different Service Types
Applications Continue to be Main Offerings for Offshore Delivery
Nearshore Delivery Plays Important Role in BPO
Offshore Delivery in Infrastructure Services an Overlooked Opportunity
Consolidation of Existing Capabilities Rather Than Expansion to New Areas
Direct and Indirect Approaches for Including Offshore in Delivery
Service Providers' Own Structures Influence Project Size for Offshore Delivery
Regional and Industry Sector Perspectives
Outsourcing and Offshore Acceptance Go Hand in Hand: U.K., Nordics, and Benelux Lead
Nearshore and New Offshore Locations Target Central and Southern Europe
Financial Services, Manufacturing, and Telecom/Utilities Lead in Acceptance
Competitive Situation
Figure: Competitive Strength of Pure Play Offshore Providers
Essential Guidance
Learn More
Related Research
Synopsis
Ordering and More Information
Price and Delivery Options



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