New Delhi, May 09: European outsourcing market boomed
in 2003, with deals signed during the year increasing by 74
per cent to touch 44 billion dollar, analyst firm IDC said.
There was major growth at the high-end of the European
outsourcing market in 2003 with total value of 100 largest
European outsourcing deals signed in the year increasing by 74
per cent to 44 billion dollar, an IDC study said.
These deals were dominated by the government sector, by
signings in the UK and by IBM Global Services both in terms of
the number of deals signed and their aggregate contract value.
"The increase in the value of the top 100 deals show that
outsourcing in Europe is booming, fuelled by strong growth in
investment from end users in the public sector and in the UK,"
Khalid Irshad, senior analyst, IDC, said.
He noted that many clients committed themselves to longer
and larger contracts in 2003 despite some negative publicity
and fears of an outsourcing backlash following some
high-profile contract difficulties. This reflects an
increasing demand for outsourcing as a way of controlling cost
and increasing efficiencies.
IDC expects this fast growing market to continue to grow
in future but at a slower rate as operating conditions
inevitably become more difficult due to a combination of
increased competition, market maturity and pricing pressure.
Bureau Report
