Unlike companies in the U.S. and the U.K., firms in Continental Europe are still hesitant to outsource work offshore to countries like India, according to research by Forrester. "We are seeing only a few large offshore deals from Continental Europe, because companies there are still testing the waters, and the ramp up is very slow," Sudin Apte, an analyst at Forrester, said on Thursday.
Following fears that the U.S. may go into a recession, Indian outsourcers have started focusing on the Continental European market to reduce their risks. Some Indian outsourcers like Infosys Technologies have set up facilities in Europe to offer services in proximity to its European customers.