2011 European IT Outsourcing Predictions and Expectations

2011 European IT Outsourcing
Predictions and Expectations
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Table of Contents
Trends and Changes in 2011
 Services Buyers
 Services Providers
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Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Outsourcing: Predictions
Predictions and
and Expectations
Expectations
Services Buyers
Judging from the perspective of ITO services buyers, the following trends and
changes are anticipated in 2011:
An increased demand for outsourced IT services from the public sector
A shift from mere cost saving to access to qualified and lower-cost IT

resources
Nearshoring will hit the mainstream
Service integration will help achieve innovation
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Buyers
An increased demand for outsourced IT services from the public sector.
In 1Q 2010, public sector contracts stood at over €9 billion and are

expected to increase in 2011.
In the UK alone, public sector gained a 75% share in the nation’s

outsourcing spending
It is expected that the demand to explore and utilize outsourcing

opportunities in Europe will increase due to recent turmoil in such
countries as Ireland and Greece as well as economic uncertainties in
other states.
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Buyers
A shift from mere cost saving to access to qualified and lower-cost IT resources.
In 2010, Western Europe faced a

significant shortage in IT skills and
resources.
In 2Q 2010, staff skills in C#, SQL, .Net

and Java were in short supply, with the
number of related jobseekers in decline.
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Buyers
A shift from mere cost saving to access to qualified and lower-cost IT resources.
2010 showed a significant increase in Growth in the number of IT specialists

IT workforce and skills in Eastern 12.33%
Europe:
9.51%
More than 20% of outsourcing

companies admitted their plans to
continue outsourcing their IT
function in 2011 to get access to
better qualified IT resources outside Romania Ukraine
their home countries.
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Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Buyers
Nearshoring will hit the mainstream.
In 2011, more Western European clients will be outsourcing their IT

nearshore (to Central and Eastern Europe) or nearshore and within own
country.
Factors that will be driving companies’ choice of nearshore outsourcing in

2011 are:
→ geographical proximity
→ strong R&D potential of former USSR nations
→ strong language skills
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Buyers
Service integration will help achieve innovation.
In 2010 and previous years, many companies failed to achieve innovation in their
outsourced operations, because they typically thought that transferring an IT
project to be completed by the 3d party should
enable them to focus on their core competencies.
In 2011 more Western European IT leaders are

expected to realize the importance of integrating the
outsourced project management, orchestration and
delivery, thus gaining full control of their sourced
projects.
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Providers
Judging from the perspective of ITO services providers, the following trends and
changes are anticipated in 2011:
An increased focus on SMEs
Innovative outsourcing engagement models will hit the mainstream
No more client-silo approach
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Providers
An increased focus on SMEs.
In 2011, an increased demand to adopt outsourced IT services will

come from the SME segment and providers should be ready to
anticipate smaller and, thus, less profitable deals.
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Providers
Innovative outsourcing engagement models will hit the mainstream.
In 2011, Western European companies will be looking for a provider

with the capacity to take over the entire product or application
development process, and in some cases, help manage the entire
business function.
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Services Providers
No more client-silo approach.
As businesses aim to learn more best practices by sharing knowledge

with their peers across different industries, IT providers will be
challenged to transform their client-silo mindsets and encourage
collaboration between clients from various industry domains
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
To conclude with, in 2011 European ITO will remain a highly demanded practice
with some significant focus shifts towards
agility
processes optimization
transparency of transactions
and payments
innovation
cloud
www.softheme.com
Outsourcing to
to Softheme™
Softheme™ 2011
2011 European
European IT
IT Outsourcing:
Predictions and
and Expectations
Expectations
Thank you!
Questions? → info@softheme.com
2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions
www.softheme.com
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2011 European IT Outsourcing Predictions and Expectations

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2011 European IT Outsourcing

Predictions and Expectations

A shift from mere cost saving to access to qualified and lower-cost IT

An increased demand for outsourced IT services from the public sector.

In 1Q 2010, public sector contracts stood at over €9 billion and are

In the UK alone, public sector gained a 75% share in the nation’s

It is expected that the demand to explore and utilize outsourcing

In 2010, Western Europe faced a

In 2Q 2010, staff skills in C#, SQL, .Net

2010 showed a significant increase in Growth in the number of IT specialists

More than 20% of outsourcing

their home countries.

Nearshoring will hit the mainstream.

In 2011, more Western European clients will be outsourcing their IT

Factors that will be driving companies’ choice of nearshore outsourcing in

Service integration will help achieve innovation.

In 2011 more Western European IT leaders are

Innovative outsourcing engagement models will hit the mainstream

No more client-silo approach

An increased focus on SMEs.

In 2011, an increased demand to adopt outsourced IT services will

Innovative outsourcing engagement models will hit the mainstream.

In 2011, Western European companies will be looking for a provider

No more client-silo approach.

As businesses aim to learn more best practices by sharing knowledge

2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions

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