Top  5  Reasons  European  Companies  keep  Outsourcing  IT  services  

Eurosia™  IT  Insights  –  www.eurosia.eu

Merkel  fought  outsourcing…

…  so  did  Hollande.

Di  Rupo  did  not  like  it  much...

…  even  Obama  was  not  a  fan  …

…  and  yet  this  US$  952  billion  market  is  sJll  growing.

Source:  State  of  the  Outsourcing  Industry  2013  (KPMG,  HfS  –  December  2013)    

App'  Development  &  Maintenance

So,  why  do  EU  firms  keep  outsourcing  their  IT?

Reason  #1:  to  save  money

Sources:  NASSCOM,  service  providers  (Accenture,  Altran,  Cognizant,  Steria-­‐Sopra),  Eurosia™  data

*Include  mgt  and  ops  overhead,  recruitment/retrenching  costs,  salaries  &  benefits

Fully-­‐loaded*  esJmate  of  a  5-­‐yr  socware  engineer’s  daily  cost  in  the  Benelux  (EUR  /  manday)

Reason  #2:  to  increase  their  organizaJonal  flexibility

Reason  #3:  to  access  talent

“There  will  be  a  shortage  of  700,000  IT  professionals  in  the  European  Union  by  2015” Mrs.  Neelie  Kroes   Vice-­‐President,  European  Commission

Source:  Alarm  over  skills  shortage    in  Europe  (Financial  Times,  May  26,  2013)  Source:  European  digital  skills  shortage  looms  (Wall  Street  Journal  –  March  22,  2012)  

Reason  #4:  to  increase  speed  to  market

Reason  #5:  to  survive

Lee  Kuan  Yew Founding  Father  of  modern  Singapore

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