Europe lags the United States in reaping from the booming outsourcing business
Outsourcing as a global phenomenon is not new; it has been going on for long. But it was not until 1990s when outsourcing has come more into limelight. Traditionally West had always been considered as developed and the largest outsourcing market. But the paradox is that even within developed world, surprisingly the wealthiest continent, Europe, has really not been successful in becoming a major outsourcing market the way the US has become and take full advantage of this booming industry. Europe remained more like a primitive market.
The US and its corporations have been successful in adopting the fast changing business trends and emergence of outsourcing, whereas European Union as a continent has still remained aloof from reaping off benefit of outsourcing inspite of having the pride and greatest tradition of innovation and excellence in business and commerce giving global competitive edge to companies in various industries like banking, insurance, telecoms, automobiles and many others.
The latest Quarterly Index from TPI, an international sourcing advisory firm, revealed that the EU represents 49%of the value of major outsourcing contracts awarded worldwide, whereas the United States is standing at 44%. But fact is major outsourcers in the EU remained confined within the continent for the same purpose rather than focusing cheaper destinations like India, China and thinking beyond the continent. For example, Western Europe is more dependent on East European countries like Czech Republic, Russia, Ukraine, Poland, Belarus & the Baltic. Well, though experts claim that political stability, government commitment to the industry, highly skilled labour force and minimal socio-cultural differences were main reasons for over-dependence on the eastern continent.
Outsourcing as a global phenomenon is not new; it has been going on for long. But it was not until 1990s when outsourcing has come more into limelight. Traditionally West had always been considered as developed and the largest outsourcing market. But the paradox is that even within developed world, surprisingly the wealthiest continent, Europe, has really not been successful in becoming a major outsourcing market the way the US has become and take full advantage of this booming industry. Europe remained more like a primitive market.
The US and its corporations have been successful in adopting the fast changing business trends and emergence of outsourcing, whereas European Union as a continent has still remained aloof from reaping off benefit of outsourcing inspite of having the pride and greatest tradition of innovation and excellence in business and commerce giving global competitive edge to companies in various industries like banking, insurance, telecoms, automobiles and many others.
The latest Quarterly Index from TPI, an international sourcing advisory firm, revealed that the EU represents 49%of the value of major outsourcing contracts awarded worldwide, whereas the United States is standing at 44%. But fact is major outsourcers in the EU remained confined within the continent for the same purpose rather than focusing cheaper destinations like India, China and thinking beyond the continent. For example, Western Europe is more dependent on East European countries like Czech Republic, Russia, Ukraine, Poland, Belarus & the Baltic. Well, though experts claim that political stability, government commitment to the industry, highly skilled labour force and minimal socio-cultural differences were main reasons for over-dependence on the eastern continent.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human FaceProf. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri - A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
