Despite a debt crisis in Greece, Spain, and Portugal, other countries in Europe, such as Germany and France, besides the Nordic region (Sweden, Norway, Finland, Denmark) and Benelux (the Netherlands, Belgium, Luxembourg), are expected to continue and, in some cases, even increase their outsourcing and offshoring work to low-cost countries like India.
“Though Europe is still fragile, we are certainly seeing an uptick in outsourcing, as well as offshoring from European clients. Deals are getting shorter and smaller in duration, but it certainly is increasing. To give you an idea of the 800 inquiries that we received last year from European clients, about 90 per cent asked us about offshoring,” explains Gilbert Van Der Heiden, Gartner’s research director for information technology (IT) sourcing.
The UK, according to Gartner’s forecast on enterprise IT spending for 2010, was expected to witness a growth rate of 3.8 per cent for 2010, while Germany was expected to grow by 3.2 per cent. For France, it was 4.3 per cent and the Nordic regions, 4.2 per cent. While Benelux is expected to clock a 4.6 per cent growth rate.
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