»»Offshoring: Europe a step behind UK & Ireland
UK and Ireland based companies currently outsource 8% of IT operations to offshore partners, versus a average of 2% of European companies.
This is the result of a survey conducted by Capgemini, IT and business consultancy company. These figures are expected to increase to 24% for British and Irish and to 5% for the European companies by 2008.
Andrew Taylor, vice president of Capgemini, explained the cause of this gap between UK and Europe:
“The rest of Europe is definitely a step behind, because of social and cultural issues, but increased competition will not give them an option,”
According the Capgemini’s report, British and Irish companies are mostly focused on cost-reduction and less aggressive than US companies in terms of reinvesting the savings made through outsourcing.
That would cause a difference in productivity: US productivity has grown by 1.8 percent in 2005, compared to 0.9 percent in Ireland and Britain.
The survey shows that companies that reinvest the savings from outsourcing in in new technology to become more competitives get a 10% higher rate of productivity than those who simply use outsourcing to cut costs.
( source )
Bookmark this article!
