IDC Predicts: European Service Providers are to Increase Offshore Assets by Half

A new IDC study indicated that European service providers are looking to build up their offshore capabilities. Leading European (IT) service providers are already represented in a number of offshore and nearshore locations, such as India, Eastern Europe, and South America. This is aimed at enhancing and strengthening their positions against the offshore-base and global giants such as Tata Consultancy Services, Wipro, IBM, and Accenture. IDC says that the planned European providers’ expansion may lead to the increase in European offshore assets by 65% during 2006.

As Mette Ahorlu, a senior analyst at IDC's European services group, has put it: "Offshore will not continue to be an 'exotic' way to save money, it will soon be taken for granted by all customers. The fact that the services are offered by the usual IT partners will help overcome uncertainties of cultural and linguistic differences and speed up acceptance."

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