Outsourcing to India: Europe plays strictly by the rules
European outsourcing customers prefer contract staff and local delivery, as per a latest Forrester study. Western Europe, which accounts for nearly $6.8-billion worth of India’s software exports, follows strict local labour rules and plans to avoid any move that could be viewed as anti-social, according to research firm Forrester.
After interviewing more than 30 vendor and user companies including Accenture, Capgemini, HP, IBM, Infosys, Tata Consultancy Services (TCS) and Wipro, Forrester reported that while global players such as ABN Amro leverage Indian providers for their global IT development and support requirements, Continental European companies send very little or even no work to India.
While Germany showed relatively solid growth in the past two years, locations such as France, the third-largest European IT services market after the UK and Germany, has sent less than 2% of its overall IT services budgets to India. This is even as Indians service providers offer the lowest rates and offshore scale.
