Europe outsourcing capital of the world

According to the latest release of Quarterly Index from outsourcing advisory firm TPI, Europe accounted for just under half of the value of major outsourcing contracts (those worth over €40m) awarded worldwide in 2004. The US came in second at 44 per cent, with Asia Pacific trailing at just seven per cent. The value of major outsourcing contracts awarded last year was a record €58bn worldwide. However, these are large contracts (over 40m deal) not accessible to the small operators in the outsourcing field.

Duncan Aitchison, international managing director at TPI, said: “The equalisation between the European and US outsourcing markets comes through dramatic growth in Europe, not any significant decline in outsourcing in the Americas”. I would add that this also shows a change in the mindset of the European entrepreneurs where IT outsourcing gains more and more interest among the big players. Once the big players will create the trend, the size of small-medium contracts will also increase. This is good news also for the Romanian IT outsourcing industry which should focus even more on the European market, much more appealing from the geographical and political point of view.