Umbrella Companies | Firms shying away from outsourcing IT contracting needs

Firms shying away from outsourcing IT contracting needs

More companies are phasing out their overseas IT contracting needs and instead using local recruitment agencies and umbrella service companies.

An increasing number of firms have abandoned their offshore IT contract workers in regions such as India, according to a recently conducted study by Gartner. While firms are still interested in keeping their costs low by outsourcing roles, the scope and range has been shortened considerably, and Gartner also found that there are 50 more countries creating internal environments that would be conducive to firms searching for local yet still offshore hosting solutions.

These emergent markets, with their growing business opportunities, could lead to some highly relevant employment opportunities for skilled and experienced IT freelancers that would be more than happy to undertake work on an offshore project much closer than India, according to Gartner’s research vice president, Ian Marriott, who added that the reconfiguration of these markets’ sourcing strategies to provide greater levels of support over a wider, yet more interconnected, geographic area as the number of new offshore service locations increase.

India has been a mainstay in the search for IT services for western European firms for several years. However, the research findings indicate that the current market share of Indian IT professionals now only stands at 35 per cent, while other locales, such as China, Brazil, and Poland, have grown to 16 per cent, 18 per cent, and 21 per cent respectively – and for a western European company, Poland is much closer to home than India.

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