EU outsourcers go small
Smaller service providers who find it daunting to compete with Indian
heavyweights like Infosys or Wipro should take a hint and go to Europe.
European firms outsourcing their IT functions are increasingly turning
away from outsourcing everything through huge contracts and are instead
looking for smaller, more specialized deals.
This is according to a research conducted by a consulting firm called TPI
International which studied outsourcing deals that transpired in Europe
for the first four months of the year.
Research indicates that the drive towards BPO has led firms to concentrate
on smaller contracts with specific aims. IT managers are looking for
partners that can provide expertise in fields such as CRM and human
resource management
According to TPI's research, 65 percent of BPO contracts in Europe
involved customer relationship management (CRM), 15 percent involved
finance and administrative functions and six percent dealt with HR.
This new approach has widened the field of prospective partners for
service buyers. More niche service providers, specialising in specific
types of BPO, are now being considered as potential outsourcing partners.
The rise of smaller niche players should mean an increase in the number of
outsourcing deals in the future.
