Based on results of the European IT Outsourcing (ITO) research 2010, IT Sourcing Europe makes some forecasts as to further development of the European ITO market in 2011.
Judging from the perspective of ITO services buyers, the following trends and changes are anticipated in 2011:
1. An increased demand for outsourced IT services from the public sector.
In 1Q 2010, public sector contracts awarded across EMEA 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, which accounted for 86% of EMEA public sector expenditure in 2010. 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 EU member states. Governments of economically slow achieving countries will most likely help promote outsourcing as an effective cost arbitrage and quality maintenance tool and will definitely adopt outsourcing on different IT and non-IT related projects.
