Example 1 of information provided in the Survey: The impact of offshore on the IT services market


The appeal in the offshore for IT developments and operations is an approach which, having firmly developed in United Kingdom, earned continental Europe. It represents a certain market share today and shows a strong growth.

Figures on the offshore are very difficult to acquire, and today no research firm and no organization can deliver absolutely precise indicators.

Some software vendors use offshore suppliers for a long time without revealing the volume or even destinations, and most end-user companies do not want to reveal the size of their offshore contracts.

Elsewhere we know badly the real revenues of the offshore players in France. Consequently is difficult to be strictly accurate with the offshore ratio in IT services. The figure below gives an idea of the disparity of available data:

 

For example, in France, analysts and IT professional organisations (mainly Syntec Informatique) confront their data to reach some sort of consensus – established at about € 400 M or 2% of IT services in 2005. From this date we project a 30% to 40% yearly growth of offshore, which would lead to the following scenario:

The graphic above is based on the assumption of a 6% yearly growth of IT services in France until 2008, a fall of 1 % in 2009 then a growth limited to 1 % in 2010.