Traditional offshore outsourcing locations such as India and China will face increasing competition from Russia and Eastern Europe, predicts Forrester Research
Jun 17, 2005
Traditional offshore outsourcing locations such as India and China will face increasing competition from Russia and Eastern Europe, predicts Forrester Research.
The researcher believes the outsourcing market will alter over the next 10 years, with innovation taking over from cost reduction as the motive for companies to outsource IT jobs.
Forrester estimates that one million European and 3.3 million US service jobs will be offshored by 2015 as businesses look to tap into new talent and open up new markets for their services.
''People are thinking: "If jobs are being offshored to elsewhere, what are we going to do for a living?" The answer is we will have higher-level jobs where we innovate,'' said George Colony, chief executive of Forrester Research, speaking at the group's GigaWorld IT Forum Europe.
''The traditional offshore model is dead. We are moving to a business model based on innovation.''
As lower-value IT jobs go overseas, executives will be forced to innovate and create new companies, services and jobs, he said.
Forrester says that the UK and Ireland account for about 70 per cent of offshore spending in Western Europe, compared with France, which makes up nine per cent of overall investment.
The researcher believes the outsourcing market will alter over the next 10 years, with innovation taking over from cost reduction as the motive for companies to outsource IT jobs.
Forrester estimates that one million European and 3.3 million US service jobs will be offshored by 2015 as businesses look to tap into new talent and open up new markets for their services.
''People are thinking: "If jobs are being offshored to elsewhere, what are we going to do for a living?" The answer is we will have higher-level jobs where we innovate,'' said George Colony, chief executive of Forrester Research, speaking at the group's GigaWorld IT Forum Europe.
''The traditional offshore model is dead. We are moving to a business model based on innovation.''
As lower-value IT jobs go overseas, executives will be forced to innovate and create new companies, services and jobs, he said.
Forrester says that the UK and Ireland account for about 70 per cent of offshore spending in Western Europe, compared with France, which makes up nine per cent of overall investment.