One in three dissatisfied with offshoring outside Europe

March 19th, 2007

resized_shutterstock_923084.jpgAlmost a third of European IT managers have had unsatisfactory experiences with non-European service suppliers, according to a survey by the Economist Intelligence Unit.

The research also found that 40% believed European suppliers retained a competitive edge in IT innovation and technical excellence.

Although many multinationals have struck deals with IT services companies based in Asia or the Indian subcontinent as part of a trend towards offshoring, almost 90% of the 100 IT managers surveyed across 20 European countries said they preferred to use local suppliers for at least some of their products and services.

Less than a third of respondents said they planned to increase their IT spend with suppliers from Asia’s emerging markets.

European IT services company KPMG International, which commissioned the Economist Intelligence Unit to undertake the Competing on Strengths survey, said that strong progress was being made by Europe’s IT providers in introducing products and services. Around half the IT departments questioned said they planned to boost IT services spending.

However, 40% of IT managers rated the price competitiveness of European IT suppliers as “poor” or “below average”, although price is not the only criteria used to select a supplier.

Source: Computerweekly

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