After the US multinationals its now the European companies that are set to future a outsourcing wave in India.
With a favorable climate and driver factors in favor India there could be an estimated 8 – 10 billion Euros of addressable market for European companies’ to do Research and Development (R& D) operations, says a new study by Zinnov.
The Zinnov study “European software product market – An opportunity unexplored” says though off shoring from Europe began in the early 90s, the momentum started picking up only in the last four years and the number of software product development captive in India has doubled. Further companies are realigning their global strategies in wake of the recent US meltdown and Europe continues to hold strong growth prospects for India and other countries in the region.
While the North America contributes about 42 percent to the global R&D spend, European market has a contribution of 35 percent followed by Asia at 22 percent and rest of the world at one percent.
The study points out that out of the top 100 European companies, 18 companies already have 23 captive centers in India with Bangalore accounting for 50 percent of the companies and one third of the captives. The National Capital Region (NCR) and Chennai are the other preferred locations for European Captive centers in India.