UK businesses keen to maintain their love affair with India: Study

January 10th, 2008 - 8:25 pm ICT by admin  

London/ New Delhi, Jan 10 (ANI/Business Wire India): The love affair between UK business leaders and Indian IT Service Providers shows no signs of waning, and nor does the popularity of India as a global sourcing destination, according to the findings of a national UK study launched today.
The ‘Outsourcing Service Provider Performance Study 2007′, undertaken by leading independent sourcing advisory firm EquaTerra, reveals that 100 per cent of UK businesses currently off-shoring all or part of their IT functions are using India as one of their locations, and are planning to continue with this strategy.
The study also indicated a strong degree of client satisfaction with Indian companies in comparison to more traditional US or European based service providers.
The region closest to India in terms of popularity as a global sourcing destination is Eastern Europe which increased from 17 per cent in 2006 to 25 per cent this year.
The study, undertaken annually, evaluates PS34 billion worth of UK IT sourcing contracts. This is equivalent to three - quarters of the total current UK IT sourcing market and covers more than 300 unique client-provider relationships and twenty service providers.
The ‘Outsourcing Service Provider Performance Study 2007′, researched 320 of the top IT spending organisations in the UK and explored their perceptions of their outsourcing providers, their satisfaction with performance and their plans for future contracts.
Study participants are senior level representatives (CFO, CIO or their direct report) within client companies, who outsource all or part of their IT functions and processes.
Additionally, the findings show that global sourcing is rapidly becoming an essential business option for UK organisations who participated in the study with a significant increase in utilisation of this tactic within the last year (from 47 per cent to 57 per cent).
Outsourcing generally is also still on the rise in the UK with 54 per cent of those questioned planning to increase their activity in 2008. Only 9 per cent predicted that they will outsource less.
The study illustrates that cost is still the main driver for outsourcing for many of the organisations who participated but over half are now outsourcing for other reasons such as availability of skills, flexibility and quality of work.
“Our research is showing that the ‘India Impact’ is increasing year on year”, said Sridhar Vedala, Director of Global Sourcing & APAC for EquaTerra.
“Business people are making the decision to outsource to India, with global or Indian providers, because they can’t find the same resources in the UK, Vedala added.
“Additionally, Indian-based firms such as Wipro and TCS are achieving real satisfaction in providing skills, flexibility and quality of work and the continued globalisation of services will require larger, more traditional suppliers such as Accenture, IBM and HP to reposition their overall delivery models and structures in order to keep pace with newer market entrants” he said.
Further results indicate despite the current high profile of China as a key global sourcing destination only 5 per cent of the leading IT organisations in the UK are currently utilising the region for this purpose.
The study also found that BPO is increasing but at a relatively slow pace with a 5 per cent increase on last year (26 per cent to 31 per cent). (ANI)

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