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Germany : Europe goes whole hog for IT Outsourcing and BPO |
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2004-7-30
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Outsourcing is the order of the day for small medium and large corporations across the businesses today. Very few companies do business without the use of external service organisations to provide at least some of their routine services. Operations like housekeeping, car fleet operations and even recruitments are some of the tasks often delivered, at least in part, via external agencies.
IT departments for some time now, worldwide, have caught on the outsourcing trend. Recent figures according to a report, informs that outsourcing contracts, especially Business Process Outsourcing (BPO) deals, are on the rise mainly in Europe.
European companies have pushed the US for the first time in the outsourcing business and the value of the European contracts now equals those in the US.
According to the figures published, during the first six months of 2004 the number of large outsourcing deals (>€ 40 million) reached 50 in Europe with total contract values of € 11.6 Billion (£7.66 Billion, $ 13.96 Billion).
In the US there were only 43 contracts signed although their combined value reached €11.7 Billion. Outsourcing in the Asia Pacific region is also on the up trend.
The study found for the first time interest in outsourcing deals in Germany outstripped those in the UK, the market that has been at the forefront of European IT Outsource services.
The implications for the IT industry are clear. The outsourcing of services is here to stay and it is likely that growing numbers of organisations, spread across many industries and of all sizes, will make use of these services. As IT based BPO reaches into different areas, beyond the current Financial Services and HR heartland, the take up of this source of IT delivery will increase. The growing deployment by businesses of Open Source based solutions may prove to be yet another stimulant.
IT now seems to become a potential tool for change in facing the business challenges of tomorrow for any industry, be it apparels, garments, textiles, fashion etc. |
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