Spain emerges as outsourcing hotspot

18 June 2009

19 June 2009 | Jake Kanter

Spain has the potential to be a leading IT outsourcing location, according to Forrester Research.

The NASDAQ-listed technology and market research firm found Spain had a "thriving" and "competitive" IT services industry, strong ties to low- cost countries in Latin America and facilities in countries such as Mexico to tap into cheaper resources.

More than 16,000 IT suppliers operated in the country and the sector employed 250,000 technology professionals. It also found that 11,000 foreign firms have offices in Spain to take advantage of the low-cost services.

Labour costs in Spain's IT industry were around half those in the UK and "almost" on a par with India when the cost of managing Indian suppliers is factored in, Forrester said.

Details of the study were released last week at an event in London organised by the Spanish Association of Consulting Firms (AEC), a non-profit group representing consultancies.

Addressing delegates at the AEC event, Forrester's principal analyst Euan Davis said: "Outdated perceptions and a lack of awareness about Spain's IT capabilities mean many European companies have overlooked the value Spain can offer as an outsourcing destination."

Daniel Naoum, representative of the AEC, added Spain offers "skills, scale and location".


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