Only 1.3% of Western European IT to be offshored

Offshore services providers (OSPs) such as Tata Consultancy Services, Wipro, and Infosys will have a moderate effect on the IT services industry in Western Europe, according to IDC. Western European organizations’ spending with OSPs will only account for about 1.3% of the total Western European IT services market in 2004. “This is a surprisingly low ratio, considering the “noise” created in the market by offshoring,” said Marianne Kolding, director for IDC’s European Services group. However, IDC has found that the largest OSP derives less than $200 million from Western Europe in revenue. “Even the largest Indian OSP is a distinct third-tier player in Europe,” said Kolding.