Offshore outsourcing to gather pace in next five years

Three-quarters
of medium and large companies in Western Europe plan to use offshore
outsourcing services between now and 2009, according to analysts Forrester
Research.

In
its "Europe’s Offshore Outsourcing Plans" report, Forrester predicts
that the percentage of firms expecting to move more than one-third of their IT
services spend to offshore providers will double between 2005 and 2008.

The
survey, based on responses from 247 IT directors, reveals that software
developers in retail firms and finished goods manufacturers and IT staff in
utility and business service companies will be the most affected by this
offshore move.

UK
organisations are more confident in their offshore services partners, than
their counterparts in countries such as France and Italy, Forrester said.

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Nonetheless,
more than half of UK respondents still listed cultural clashes and language
differences as the top concern when considering the use of offshore service
providers.

By Daniel Thomas