European parliament backs outsourcing directive

The European parliament has approved a directive designed to allow IT outsourcers and other services companies to operate more freely across Europe.

The Services Directive seeks to reduce red tape and create legal certainties for those services firms operating across borders. European Commission ministers are expected to rubber stamp the directive next month, and it will then come into force in member states by 2010.

Some left-wing and green parties opposed the directive in the European parliament, fearing that it would give free rein to big business and threaten wages and conditions. Industry backers of the directive said more jobs would be created as a result and that the GDP of Europe would increase.

Comment on this article: computer.weekly@rbi.co.uk