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Indian offshore service providers are looking forward to challenge the European market. According to Gartner, Inc - European competitors and enterprises within Europe is increasingly seeking to benefit from global sourcing. Unlike earlier when European countries were reluctant to engage with offshore providers to support their business needs because of political sensitivity, labour laws, language requirements and cultural compatibility. Lately the scenario has changed, because of globalization that is spreading new competition, and European companies cannot overlook this factor.
In the year 2006, when leading offshore providers in India released their quarterly earnings announcements it showed strong earnings in Europe. These earnings show how Indian service providers have achieved traction in the traditionally difficult continental European market. They also demonstrate how, especially outside the U.K. Few European organizations are not comfortable with the idea of publicly announcing the use of offshore outsourcing. This is because European business leaders still worry about offshoring effect on their company's workforce and image.
Tier 1 Indian offshore providers, without exception, have recorded outstanding growth rates since the first quarter of 2006. The three largest offshore providers in India have recorded year-on-year growth of more than 40 percent, while Cognizant has enjoyed a 60 percent growth rate. Although the U.S. is still the largest market for these companies, their European divisions have shown the strongest growth, thanks to strong acceptance in the U.K. and an increasing number of customers in continental Europe, said Claudio Da Rold, vice president, distinguished analyst for Gartners IT sourcing group.
Indian offshore providers are recruiting staff in the European markets they sell into; not just sales staff, but consultants, project managers, engagement managers and, in some cases, personnel to staff their new nearshore delivery centers, "added Ian Marriott, vice president, research for Gartners IT sourcing group. "However, Indian service providers must move cautiously to deal with further challenges before they can compete on an equal footing with the major traditional providers."
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