The lure of
outsourcing for heads of IT is as strong as ever reveals two recent
surveys, but their choice of partners is changing.
Gartner reports that offshore spending will swell 50% in 2006 and
2007, kept afloat primarily by UK firms. Speaking at the European
Outsourcing and IT Services Summit last week, the analyst said the
number of businesses offshoring will increase from 13% to
20%.
Research from Datamonitor shows that India’s popularity with UK
companies continues. However, it also finds that larger service
suppliers are losing ground to smaller Indian companies offering
more focused services.
Indian service providers experienced a combined sales growth of
35% last year and were the most profitable and hired the most staff
of all the top 50 service providers. Overall, the combined revenue
growth rate for these top players is £142bn for 2005.
Traditional service providers IBM, EDS, Fujitsu and Accenture
topped the leader board.
