European companies and outsourcing isn’t a match
Written on April 11, 2008 – 4:45 pm
Ernst-Jan Pfauth, editor in chief
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A study by Forrester shows that continental European companies are hesitant to outsource work like software engineering to countries like India. Forrester analyst Sudin Apte: “We are seeing only a few large offshore deals from Continental Europe, because companies there are still testing the waters, and the ramp up is very slow.” The United States though, are pretty fond of the Indian outsources. American companies make up for 60 percent of all the revenue made by Indian outsourcing companies.
Yet Indian companies foresee problems now the US economy faces a possible recession. Therefore they try to convince European companies to use their services. This turns out to be quite complicated, since European companies still insist on offering local service, partly due to local languages.
According to Apte, companies from U.K. and US are willing to change their systems and production processes. Even newspapers outsource editorial work. But a French company “would want its vendor to fully adopt French business practices, deliver from a local facility and interact in the local language”. But they do feel the need to start outsourcing on a larger scale, Apte said. “They will start with projects offshore that involve 30 to 40 people on a project, and then ramp up quickly”.
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5 Responses to “European companies and outsourcing isn’t a match”
By Andrei Potorac on Apr 11, 2008 | Reply
Well, why don’t they consider Romania too? I bet you know Maven.com, which was acquired by Yahoo for 160 mil $ last year.
They have a team of 15 people here in Romania, that do all their work. (and that’s pretty cool stuff you’ll see on their website)
And here the medium salary is pretty low as well, not sure how much is in India. If any of you want to get in touch, you’ll find me by clicking on my name, or Google me. :)
By Andrei Potorac on Apr 11, 2008 | Reply
I meant .net so that website is maven.net
By Rick Dane on Apr 12, 2008 | Reply
Increasingly companies are using remote access technology to have employees do work directly on their servers which bypasses the traditional BPO process:
http://rickdane.info/content/o.....cut-out-mi
By Jeff Mills on Apr 16, 2008 | Reply
If people are looking for more information about outsourcing, I have posted about 14 free videos about how to outsource your internet marketing tasks at my free blog.
http://www.outsourcesecretsrevealed.com/blog
Jeff Mills
By Offshore Outsourcing India on Apr 17, 2008 | Reply
Data Entry Service- Vinr Corp provides Outsourcing data entry work. We are specialists in data entry services and data processing service. If you would like to concentrate on your core processes, then Outsourcing data entry work is a wise and profitable option.