Impact of offshore on the UK Software Companies

In Europe, UK companies are more inclined to make use of off-shoring, as they have to face international competition. Many UK organisations have software developed from other countries such as Microsoft applications in the USA, SAP software in Germany and so on. In a research done by Forrester predicted that by 2009, UK will account for more than 75% of £2.38 billion of Western European spending on off-shoring and that IT services provided from overseas will grow from £726 million in 2004 and will keep increasing 27% each year.

India’s most successful outsourcing consultant, Wipro gets 12% of its work from UK companies (The Economist, 04-03-2004) and in 2012 it has achieved the award Project of the year 

Many European countries want to offshore their work because of:

• Low wages in developing countries.
• flexible labour laws in the UK.
• English speaking cheap labour available.