Press release
Study Shows How European Companies Choose Their Outsourcing Partners
It outsourcing Europe 2010, vendor selection by European companies, outsourcing destination selection criteria in europe
The study results show obvious similarities and differences in the ways how outsourcing companies from different countries behave in terms of outsourcing destination and vendor selection processes.
According to the study findings, low cost of software development and maintenance is the major factor helping determine where to locate the outsourced development in all countries surveyed except Austria, where the major factor is geographical and cultural proximity. Additionally, Austria shows very high rates of outsourcing nearshore and nearshore and within own country. On the other hand, Austria (along with Norway) shows the smallest ratio of companies outsourcing their SD within own country (only 5% of respondents). Other most frequently cited factors (in all countries surveyed) are: available IT resource and talent pool and positive references. Factors such as political/economic stability, legal system maturity, IP security, strong R&D base and proficient English language skills are considered by companies in the lowest priority.
In order to select an ITO partner, most of the companies surveyed in the UK and Sweden consider low services rates, while most of German, Swiss, Austrian, Dutch and Norwegian outsourcers consider vendor references and positive track record. Availability of specific skills that are hard to find within own country appears to be important for the majority of the UK, German, Dutch, Swedish, Danish and Norwegian companies, while innovative business model is a very decisive factor for German, Swiss, Danish and Norwegian outsourcers.
More interesting and thought-provoking findings are available in IT Sourcing Europe’s “European ITO Intelligence Report 2010: Western and Northern Europe”
IT Sourcing Europe Ltd is a European company specializing in nearshore IT Outsourcing consultancy as well as market research and analysis.
The Meridian, 4 Copthall House, Station Square, Coventry, West Midlands,
CV1 2FL United Kingdom
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