Europe, Outsourcing

Europe plans more outsourcing

30 Sep 2004 | (Survey)

Nearly a fifth of Europe's top firms plan to outsource or relocate activities to another country over the next two years, with central and eastern Europe the favoured destinations, a survey from C&W/H&B showed.

A survey of 500 of Europe's largest firms showed 18 percent aim to shift operations.

After central and eastern Europe, India and China are the next most popular locations, according to the annual survey by property firm Cushman & Wakefield Healey & Baker (C&W/H&B).

"The corporate world of the 21st century is mobile. The cities of Europe need to be aware of this and to create more favourable conditions just to hold on to existing investment -- let alone to attract new investment," said David Hutchings, head of research at C&W/H&B).

Firms have been looking to open offices in new European Union entrants such as Poland and Hungary as well as outsource some operations there, Hutchings said.

In its rankings of 30 European cities London scored highest as the most favored place to do business, the same as in 2003, while Paris came second, also unchanged on a year ago. Frankfurt came third, also unchanged. The lowest-ranking city was Oslo.

Some 64 percent of survey respondents said London was the most important European financial centre, versus 56 percent who held this view a year ago.

City rankings were compiled on the basis of 12 different factors, such as communications, cost, quality of life and access to markets.

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