I was talking to Valueshore Spain this morning about the likely trends in offshoring. As I have recently blogged about alternative destinations to India such as Egypt, Brazil and China, why not look into the nearshore options for UK companies.
Valueshore is a collaboration of Spanish consultancy firms which aims to give potential global clients information about outsourcing to Spain.
It is speading the word in the UK about why IT directors should buy services in Spain.
Daniel Naoum, co-founder of Valueshore Spain says the IT sector in Spain has grown despite recession and many companies are selling services overseas. Although it did only grow 0.7% compared to double digit rates in recent years.
The Spanish IT sector will make 42% of its money developing and integrating software, 37% in outsourcing and 21% in consultancy this year.
He says the advantage of Spain is that it has a developed economy therefore service providers are used to working on high-end projects. As a result businesses can outsource an entire project to Spain rather than sending some work offshore to get cheap labour and retaining the more complex work.
He says if you outsourced to Spain you would get suppliers that make recommendations, for example, rather than just completing what they are told to.
It could offer a similar proposition to Brazil with its value coming from industry expertise and not low costs.
Here are some facts about IT consultancy in Spain.
- At the end of 2009 there were 113,000 people working in the Spanish IT consultancy industry.
- The IT consultancy industry in Spain is expected to grow 1.6% this year
- In 2010 the Spanish IT consultancy business will be worth 9.7bn Euros
The Spanish Association of Consultancy firms, which together form Valueshore Spain, is made up of the following companies.
- Atos Origin
- Grupo Delaware
- Ernst & Young
- Hay Group
- IOR Consulting
- Vass Consultoria De Sistemas
- Institucion Vinculada Acec