Monday, August 08, 2005

8 out of 10 UK companies to boost outsourcing: study

From: bloomberg

Eight out of 10 ``large'' U.K. companies plan to boost offshore outsourcing to cut costs, as the process matures, according to a survey by TPI, the largest outsourcing adviser.
Eighty one of the 100 executives questioned for London-based TPI's survey will shift business to countries including India and China in the next two to three years. Central and Eastern Europe are also popular with outsourcers. Only 4 percent intend to decrease it, TPI said.
Companies are likely to continue to use India to a greater extent than Central and Eastern Europe, according to TPI.
India, as the longest established country for offshoring, provides an indication of how trends may develop globally. About 75 percent of the executives questioned use India as an offshore destination, 28 percent use Central and Eastern Europe and a quarter use China, according to the report.
Accenture Ltd. and International Business Machines Corp. are among the world's biggest outsourcing firms. Indian rivals are merging, and will challenge global companies if the trend continues. Companies are also using subsidiaries instead of outside consultants for their information technology outsourcing, the report said. Research company Simpson Carpenter carried out the TPI survey. The executives polled in the research are responsible for outsourcing at 100 different companies with an average of 5,000 employees and average annual revenue of 85 million pounds ($151 million).