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The status of the offshore outsourcing market in the Netherlands
 
 

Date: 15.05.2004 :: Page: 1of 1

 
 

In the research conducted by Ernst & Young, among 600 (IT) managers and directors, they conclude that Dutch managers do not quite know what position they should take regarding off-shore outsourcing. In the Netherlands a rather heated debate is going on about offshore outsourcing and the possible labor market effects. Labor unions, (IT) managers, independent sources, IT research organizations as well as politicians and political parties have expressed their, often opposing opinions in the last few months. FNV Bondgenoten, a large labor union, estimated about 50,000 IT job losses in the coming 5 years (about 10,000 each year) while the 600 (IT) managers E&Y questioned put the same figure about 15,000 job losses as a result of offshore outsourcing in 2004 only. These are the most pessimistic numbers though. Numbers and opinion differ significantly from 1000 to 15,000 job losses annually. Others, as in the USA, have the opinion that offshore outsourcing will have a positive effect on the Dutch IT sector and labor market and offshoring (and outsourcing in general) is probably just another hype which hit the IT sector world wide.

 
 

According to the E&Y research – Trends in ICT/ICT Barometer - reported by the Automatisering Gids, 79% of the questioned think that offshore outsourcing will have a negative effect on the Dutch IT labor market. Interestingly, representing a conservative standing point, 39% of the respondents said that there are strong and adequate reasons (too many risks and disadvantages) not to outsource IT jobs offshore while 31% expressed different opinion. However, an impressive 40% finds that offshore outsourcing will negatively influence the Dutch IT offer and competitive position while only 27% disregard this possibility. According to the research, software development, help desk and call center operations, web design and content management and IT support are seen as best fit for offshore outsourcing while consultancy and system administration are considered to offer less opportunities. 8% of the organizations already have offshore operations of some kind (48 organizations), while 15% (about 90 organizations) would consider it in the future.

 
 

Related information

FENIT (Dutch IT Association) member list

 

FENIT has about 270 members, representing (by accumulated annual turnover of over € 1bn) about 80% of the Dutch IT industry.

 
     
   

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