Gartner Says Offshore Outsourcing Market in Europe Will Grow More than 40 Percent In 2003

According to research made by the leading research and advisory firm Gartner, Inc., 75 percent of large and leading medium sized companies in Europe will consider use of offshore services by 2004. Gartner today announced that the drive towards offshore outsourcing continues to accelerate with predicted market growth of more than 40 percent in 2003. It said offshore services must become a standard strategy item for enterprises in Europe, and warned that failure to utilise a global sourcing and delivery approach will result in loss of competitive advantage and failure to deliver optimal shareholder value.

"Companies are under increasing pressure to deliver higher levels of service at less cost," said Ian Marriott, research director at Gartner. "The beauty of offshore services is that it enables companies to do just that. Access to high quality staff with key skills, lower costs and the ability to utilize 24x7 support services, means enterprises can continue to improve service levels while maintaining healthy margins. In turn, this allows them to provide more competitive price levels for customers. Understanding and preparing for the impact of offshore sourcing has therefore been characterised by Gartner as one of the CIO 'must do resolutions' for 2003."

Gartner said companies should not under estimate nearshore contenders, including Ireland and Eastern Europe. "Nearshore locations often benefit from close cultural compatibility, language and similar time-zones," said Marriott.

Please click here to read the full press release from Gartner, Inc.

About Gartner:
Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com.

April 11, 2003