According to a survey by Germany’s Steria Mummert Consulting, 26 percent of the companies polled said India was the preferred outsourcing destination.
Outsourcing is on the rise in Germany, with 62 percent of all companies infavor of moving some processes to countries outside Europe. That marks a 10 percent increase from last year, according to the trend study.
Steria Mummert found that almost one in three companies is planning offshore projects or already has some in place. The number of German companies that are doing business with offshore service providers has doubled from last year.
The telecommunications industry is taking the lead in moving services offshore. Ninety-one percent of telecoms companies are using offshore services, up 23 percent points from a year earlier. In the manufacturing sector, the number of companies engaging in offshore activities jumped 29 percent to 84 percent. In the IT sector, 60 percent of companies were operating partially offshore, up slightly from last year.
China came second to India as an offshore country destination, with 16 percent.
Steria Mummert interviewed 24 decision makers at companies with more than 100 employees. The interviews were conducted in June. The trend study is titled “Outsourcing, a winning model.”