UK becoming hottest destination for Indian outsourcing comapaniesMonday, May 30, 2005
According to a new report, the first time, the UK has become a leading market for outsourcing. The UK has overtaken the US to become the top national market for new outsourcing contracts. According to TPI, the UK represented 37% of the market for major outsourcing contracts awarded worldwide this year. UK is followed by US – 25% and Asia-Pacific with 4%. However, it is understood that the UK will not continue its leading position as the majority of the outsourcing chunk is because of deals by Reuters and BT. Even in this quarter, without Reuters and BT, the UK would have been the second-largest national market.
However, Europe still dominates the market and accounted for over 50% of the new contracts worldwide. According to Duncan Aitchison, TPI’s Managing Director, International:
“While some may argue that Europe’s €2.4 billion mega-deal – the Reuters/BT contract – skews the results for this first quarter, Europe still accounted for well over half (57%) of new contracts worldwide – a high point for European outsourcing.”
Also, the so-called big six suppliers in the outsourcing market which are – Accenture, ACS, CSC, EDS, HP, and IBM have seen their combined market share to fall by 57% in the first quarter of 2005. 60% of the senior management in UK companies are looking at big Indian outsourcing providers who are providing outsourcing services like their western counterparts but at low cost. This growing confidence in Indian outsourcing companies will further allow an increase in their market share and a decrease in the market share of big six and other western consulting companies. This also gives a wider choice for clients.
Though confidence in Indian outsourcing companies is increasing, news like cheating credit card by the employees of Indian BPO companies can affect them. According to reports, some employees of Indian BPO company used their call center positions to trick customers into giving them their credit card numbers.