In the wake of recession, many big name Indian outsourcers turned to European clients to avert the decline in demand in the U.S.
However, this attempt has been in vain, as Europeans are resistant to outsourcing and they have several outsourcing giants of their own, says Forrester Group. Capgemini is a leading outsourcer headquartered in Paris, France.
According to Forrester’s prinicpal analyst, Sudin Apte, Indian firms are not attuned to the nuances of European culture and this makes it difficult for them to compete with rival suppliers with a large European presence, reports pcworld.com
Another problem facing Indian outsourcers is that they only have a few line of services as opposed to MNCs that have set up a variety of business services in Europe. Additionally, most European businesses require outsourcer employees to work on its premises. Indian firms often do not have the capacity to keep their staff onsite.
Apte added that Indian outsourcers just are not able to compete in Europe, because they do not have much staff there.