The IT outsourcing industry in Europe is set to benefit substantially from the uncertain economic climate brought about by the credit crunch, according to an industry expert.

Laura Converso, research manager at IDC's European Services Research department said that IT outsourcing will make up 42 per cent of the IT services market by 2012, reports IT Pro.

"As the European economy cools down, the outsourcing segment continues to be the growth engine of the IT services market," Ms Converso said, according to the technology news provider.

She went on to say that the Western European IT outsourcing market could be expected to overtake that of the US by 2009, making it the world's largest market for IT services.

This news follows reports from Reuters last week that the IT outsourcing industry is expected to shift geographically as a result of the credit crunch.

Research firm Gartner predicted that India would have an advantage over other offshore locations because of the scale, quality and low cost of its labour.



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