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"Price is not the only determinant of value when selecting an offshore location. Factors such as accessibility, cultural fit, language capability and political stability also play important roles."

MARK RAPHAEL, PA EXPERT IN IT SOURCING

Benefits in outsourcing IT closer to home

Western companies wanting to outsource their IT services might benefit from a supplier close to home, rather than automatically looking to Eastern Europe or Asia.

Speaking to Computer Weekly, Isban Juan Jose Kuntz, the chief executive of Santander's technology division, noted the benefits Spain has to offer. A high number of IT professionals, knowledge of retail banking and competitive rates were some of the benefits mentioned.

Working with IT outsourcing companies in Spain could be a way of accessing cost-effective services in South America, as countries such as Brazil and Argentina have been establishing themselves as IT offshoring destinations for the past ten years or so.

Another Computer Weekly article stated that IT outsourcing firms in India are looking to expand their client base beyond Europe and the US to places such as Brazil, Russia and China in order to stay competitive.

Mark Raphael, an IT sourcing expert at PA Consulting, comments: "Over the last five years the number of viable offshore locations available to UK companies looking to outsource IT services has increased significantly. This is not only because of local investment in countries such as Spain, South Africa and Ireland but also the realisation from buyers of these services that price is not the only determinant of value when selecting an offshore location. "Factors such as accessibility, cultural fit, language capability and political stability also play important roles in selecting the right location for IT services."

To find out more about the ways that PA can assist with your IT sourcing needs, please contact us now.