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Latest NewsHR practiceHR strategyOffshoringOutsourcing

Outsourcing abroad grows in popularity

by Michael Millar 8 Aug 2005
by Michael Millar 8 Aug 2005

A total of 81% of large UK companies plan to increase their offshore outsourcing over the next two to three years, according to new research.

The survey by the TPI offshoring consultancy, based on a survey of 100 senior UK executives responsible for outsourcing within large companies, shows only 4% expect to decrease it.

As the outsourcing market has matured, UK outsourcing buyers have come to see a wider range of countries as viable offshore destinations. 

While India continues to enjoy its first mover advantage, being used by 75% of survey respondents, there is close competition for second place, between Central and Eastern Europe (28%) and China (25%). 

Despite being less widely used than India, Central and Eastern Europe is seen as equally appealing an outsourcing location, with both destinations rated attractive by 59% of respondents.

Duncan Aitchison, managing director, international at TPI, said cconsolidation among Indian providers was making them an increasingly credible force internationally. 

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“As confidence in them grows and if consolidation continues, the biggest Indian providers could potentially challenge the current global “Big Six” of outsourcing – Accenture, ACS, CSC, EDS, HP and IBM,” he said.

 

Michael Millar

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