According to a research study by sourcing advisory firm TPI, international sectors like retail, production, telecoms and media in Europe, the Middle East, and Africa (Emea) increased costs on IT contracting out on the 3 quarters of this year compared to the entire period of 2010.

For this year’s third quarter, the production market posted EUR1.5 bn in IT contracting out spending, compared with only EUR1.4 bn in the exact same period last year. For the first three quarters of 2011, the sector spent EUR5.8 bn compared to EUR5.6 bn in all of 2010.

When it comes to the retail sector, it had already invested EUR1.4 bn. This was higher than the figures published last year.
On the other hand, the financial services industry, the sector that published minimal costs in 2010, has decreased expenses on IT outsourcing services, spending only 48% of in 2015’s overall. Inning accordance with TPI, during the 3rd quarter of 2011, Emea monetary services sector invested EUR1.6 bn in IT outsourcing, a far cry from the EUR2.7 bn of 2010. Reduced IT spending was also seen in energy, health care, and pharmaceutical sectors.According to Martyn Hart, Chairman at the National Outsourcing Association, IT outsourcing has actually become a method for sectors like retail to take full advantage of efficiency and entice customers. A significant boost in outsourcing activity was seen in the retail sector as companies aim to be more competitive through advanced IT options and updated facilities that outsourcing can provide at low risk. Source: http://www.computerweekly.com/