Europe sends the most jobs offshore

Published: 15 January 2005 y., Saturday
Europe stormed ahead of the US last year in its dash to offshore more business activities, a report revealed yesterday. The research, from adviser TPI, showed offshoring contracts rose to a record €58bn (£41bn) last year, with Britain accounting for 20% of the total, making it the second biggest offshorer after the US. Europe as a whole accounted for 49% of the total, overtaking the US for the first time, which stood at 44% of all projects. The Asia Pacific region accounted for 7%. In 2003, the US had a market share of 47%, Europe 41% and the UK 17%. The €28bn of outsourcing contracts awarded by European firms last year was up from €25bn in 2003 and double the level of 2002, TPI said. TPI says Europe's use of offshoring will continue this year. TPI's research showed 67% of the total last year was in the IT sector and 33% was in business processing, whereby firms engage third parties to perform functions such as finance and accounting, procurement, customer relationship management and human resources administration. Business processing expanded by 50% as a proportion of major contracts last year, from 22% in 2003. Of all offshoring, the biggest single chunk was in financial services, which accounted for a third of the total. Western firms are often used to provide advice and technical expertise when setting up centres overseas. The TPI figures found the share of this market going to the "big six" US firms, which include IBM, Hewlett-Packard and EDS, had fallen sharply last year because of the growth in European offshoring.
Šaltinis: The Guardian
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

EU to hold top-level discussion on economic situation

On 11 February, heads of state or government of European Union member states will meet in Brussels to seek a commitment towards implementing a revitalised economic strategy to boost employment and growth in the EU. more »

IMF Sees Growth in Lithuania in 2010-2011

International Monetary Fund forecasts that Lithuania’s economy will grow 1.6 % this year, making it “the only one of the three Baltic economies expected to be in the positive territory in 2010”. more »

Ryanair to Open Its 1st Central European Base in Kaunas

Raynair announced it would open its 40th and 1st Central European base at Kaunas, Lithuania’s second largest city, in May with 2 based aircraft and 18 routes. more »

A new strategy to strengthen World Bank partnership with the Kingdom of Morocco

A new Partnership Strategy for Morocco has been approved by the Board of Executive Directors of the World Bank. more »

Sebastián: “The electric car is an opportunity for European industry”

The electric car is an opportunity for European industry. more »

EBRD launches new strategy for Kazakhstan

The EBRD’s Board of Directors has adopted a new strategy for Kazakhstan, which reinforces the Bank’s commitment to further support the Kazakh economy and sets out the priorities for its activities in the country over the next three years. more »

State aid: Commission approves Swedish State guarantee for Saab

The European Commission has authorised, under EU state aid rules, plans notified by Sweden to provide a guarantee that would enable Saab Automobile AB to access a loan from the European Investment Bank (EIB). more »

The EU wants to showcase the commitment of science to economic recovery

At the informal meeting of the Ministers of Competitiveness (Science and Industry), to be held between 7 and 9 February in San Sebastian, the issues on the table will include placing science at the top of the EU agenda and showcasing its role in economic recovery, as well taking the debate on the electric vehicle to EU level. more »

IMF Executive Board Approves US$1.27 Billion Stand-By Arrangement with Jamaica

The Executive Board of the International Monetary Fund (IMF) today approved a 27-month Stand-By Arrangement with Jamaica in the amount of SDR 820.5 million (about US$1.27 billion) to support the country’s economic reforms and help it cope with the consequences of the global downturn. more »

Statement of an IMF Staff Mission to the Kyrgyz Republic

Mr. Nadeem Ilahi, chief of an International Monetary Fund (IMF) staff mission to the Kyrgyz Republic, issued the following statement today in Bishkek. more »