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February 15, 2006

Euopean cos taking the BPO way

A new survey has found that outsourcing and offshoring among European businesses is set to increase as boardrooms continue to pressure their CIOs for more IT cost savings. The survey of 161 CIOs and IT executives in European organisations by Capgemini found that 58 per cent of the respondents are considering outsourcing and 39 per cent are considering offshoring in the next two years. The survey results show that although European companies have been slow on the uptake when it comes to outsourcing and offshoring, things are changing real fast. Cost factors will increasingly push them towards embracing a business model which has a big outsourcing component. That is inevitable! silicon.com reports:

The report said: "The cost chase is far from over and CIOs remain under heavy pressure, facing challenges from increasingly common, low-cost delivery options such as offshoring and distributed delivery."

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