ICT/BPO Market Trends

European companies are still looking to outsource IT work and business processes. On this page you can find information that can help you find ways to offer your IT outsourcing (ITO) or business process outsourcing (BPO) services to European companies.

There are many promising trends in the European outsourcing market. Big Data, 5G and Artificial Intelligence have served as triggers and enablers for several other trends and innovations. Currently, the main opportunities lie in big data, mobile and cloud application development, the (Industrial) Internet of Things, virtual and augmented reality, blockchain, machine learning and in the mastering of technologies related to these trends. The skills shortage in Europe and increased demand for added value / specialised service providers also offer opportunities.

An increasing number of European companies are adopting big data services, as the insights big data can generate offer good business opportunities. Northern and Western European markets are especially promising. The European IT-skills shortage stimulates the outsourcing of big data services. You can offer your own big data services, or provide big data services for a European partner.

The global blockchain market is growing exponentially. Western Europe is the second largest region worldwide in terms of blockchain related spending, indicating good opportunities for your blockchain services. Awareness of blockchain technology as a solution has expanded from the financial sector towards into numerous other areas, like supply chains, manufacturing and healthcare. The considerable European IT-skills shortage further stimulates the outsourcing of blockchain services.

European Contact Centres are increasingly web based, which makes outsourcing to developing countries easier. The rise of artificial intelligence (AI) in contact centres has led to less need of direct human interaction with customers. This offers opportunities for contact centre service providers in developing countries, since fluently speaking the customers’ language has become less important. However, language skills remain important as well as being able to offer a multichannel approach. The growing market and the increasing acceptance of outsourcing among European companies make Europe an interesting market for contact centre providers from developing countries.

The European FinTech (financial technologies) market is booming, as the financial sector has to cater to a modern, digital consumer. You can provide your FinTech services to traditional financial institutions, or to the (European) FinTech firms they may hire. New technologies such as blockchain and Artificial Intelligence / machine learning are increasingly used in FinTech. In addition, new European legislation offers you opportunities in RegTech (regulatory technology) and payment services.

Europe is the second largest market for information security after North America. As the threat to information security continues to grow, so does spending on security applications. Technological developments like cloud computing and the Internet of Things also drive the demand for information security. European companies increasingly recognise the importance of addressing information security issues. This makes Europe a promising market for you.

The European market for internet of things (IoT) solutions integrated with big data is growing. Germany, the United Kingdom, France, Italy, Spain and the Netherlands are leading European IoT adoption, but Eastern European countries and the Nordics are following closely. Both consumer and business IoT offer opportunities, though specialisation may provide a competitive advantage. The home, health and finance sectors are the front runners in IoT adoption, and the shortage of skilled specialists continues to drive outsourcing.

Global spending on machine learning & Artificial Intelligence (AI) systems is on the rise. Western Europe is a particularly interesting market, as machine learning and AI expenditure in both the public and private sector is expected to increase considerably. The European general IT-skills shortage continues to drive outsourcing. Combined with an increased interest among numerous sectors in machine learning and AI solutions, this offers you good opportunities.

Mobile application development is rapidly developing. It is one of the most outsourced IT services among European companies. Europe’s increasing IT-skills shortage continues to drive this outsourcing. Your best opportunities are to develop your own mobile applications, or provide mobile application development services for a European partner. As European companies look for specialists with niche expertise, you should focus on a specific market or technology.

The European market for software developing services is growing. Most European economies are doing well, technology adoption is high and the shortage of software developers make companies more open towards outsourcing their software development. However, in addition to traditional software development outsourcing issues, such as cost reduction, productivity, enhancement, and security, software developers need to stay on top of technology developments to remain competitive.

The market for software testing is performing strongly. These services are ideal for outsourcing to developing countries, especially since Europe has a growing IT skills shortage. Industry-specific testing is becoming increasingly important, with the financial services sector being especially promising. Automation and crowdsourcing are becoming standard, but thorough software testing should combine these models with specialised outsourced testing teams.

The global Virtual and Augmented Reality (VR and AR) market is growing exponentially, shifting its focus from VR to AR. Europe accounts for about a fifth of the market. This makes it an interesting market for your VR and AR services. Both the consumer and the business market offer you good opportunities, but specialisation may give you a competitive advantage. Gaming and healthcare are the most promising industries for VR and AR.