Mumbai, March 18: Gartner Inc has estimated that up to 25 per cent of traditional information technology (IT) jobs in many developed countries will be outsourced to emerging markets by 2010.
The US-based research group was presenting its analysis of outsourcing trends and other current IT issues at its annual spring symposium at Barcelona in Spain. India remains the undisputed offshore leader, with China and Russia emerging as strong contenders, Gartner said.
The 10 new countries joining the European Union on May 1 will not challenge India or China in terms of size and number of IT professionals, the research firm added. However, these countries will attract European outsourcing contracts as they have favourable time zones and cultural and language connections.
Gartner said a growth in offshore outsourcing to India will be a highly significant development in IT in the near-term. By 2005, 30 per cent of leading European businesses will look at nearshore or offshore outsourcing options. The offshore call centre industry and business process outsourcing represent the highest opportunity for growth.
The research firm, however, said though sourcing enables companies to deliver better services at low costs, it also poses challenges and risks. It felt that there would be increasing backlash in connection with white-collar jobs moving offshore.
Gartner vice-president Ian Marriott said the potential cost advantages of outsourcing are so persuasive that companies that don’t consider it seriously risk doing their shareholders a disservice.
While businesses will also be at a risk due to loss of competitive advantage and inability to focus on growth through innovation, Marriott said global sourcing is now becoming a mainstream delivery model.
Commenting on the popularity of outsourcing in Europe, Gartner managing vice-president Roger Cox said of the $15-billion mega-deals signed in 2003, 10 were awarded by Europe-based enterprises. Until then, Europe-based organisations had signed 14 mega-deals since 1989.
The UK delivered five mega-deals last year, led by the government and financial services organisations, he added. Moreover, France signed three deals, indicating it has begun to overcome its cultural resistance to outsourcing. In western Europe, the UK is the largest and the most mature market, representing 35 per cent of the total European outsourcing market in 2004.
