Europe's Diversity Makes It a Challenging Market for Indian Outsourcers

Ann All

I blogged just last week about Indian outsourcers' pursuit of aglobal sourcing model, with expansions into far-flung geographies including North America and Europe.


Europe is likely to be an especially hot prospect for growth, considering that its appetite for outsourcing appears to be growing as demand in the U.S. remains sluggish. Indian companies have already established a strong reputation in the UK, with all British companies that offshore IT functions sending at least some of their work to India.


Extending that goodwill and establishing on-site operations in Europe could help them win higher-value contracts, a reason cited by Wipro's chairman in a story about the company's plans to open a second software development facility in the UK. The story also reports that Wipro hopes to buy a local service provider in Germany.


Acquisition seems like a smart strategy in countries other than the UK. As a column written by EquaTerra's managing director of global sourcing spells out, Europe will demand a more nuanced approach than the U.S. because of its diverse collection of languages, cultures and regulatory requirements. Unlike the U.S., Indian outsourcing providers will not be able to treat Europe as a single, integrated region.

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