Eastern Europe's challenge to India


The globalisation of the outsourcing industry will soon see one of the major Indian players acquiring a large European or American provider, new NOA research shows.

Seventy five percent of respondents of the research, which surveyed the delegates who attended the European Outsourcing Association (EOA) summit believe that such an acquisition is imminent. Consolidation was earmarked as a rapidly increasing industry trend by 68 percent of delegates, in light of HP’s recent acquisition of EDS.

The research also found that:

No longer is continental Europe as protectionist about outsourcing and offshoring as it once was – it is now an accepted business practice across the continent. Only 8 percent of respondents believe that central European countries like France and Germany are far behind in accepting outsourcing as a useful business strategy.

New nearshore locations, particularly Romania and Bulgaria thanks to their recent entrance into the European Union, have brought a new attractiveness to the European offshoring market. 59 percent of respondents believed Romania and Bulgaria are now more attractive to work with, whilst only 9 percent believed the attraction had been reduced.

The delegates realised that Eastern European nations do not have the scale of staff to resource behemoth outsourcing deals, with the majority (58 percent) believing that different geographies are suited to different types of outsourcing projects. Only 17 percent believed that Indian providers are leaps and bounds ahead of all other geographies.

The research at the conference highlighted what the industry considers to be key trends in European and global outsourcing. Consolidation will be big and we will just have to wait and see whether one of the large Indian outsourcers are poised to acquire a large Western player. In terms of European outsourcing, the market is maturing with more and more Western European countries outsourcing and Eastern Europe making its mark as an offshore destination.

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