European IT firms are less likely to offshore their work, to countries like India, than their US and UK counterparts, according to a new study.
Forrester has found that in continental Europe "companies are still testing the waters" and so take up of outsourcing is "very slow".
The research company said that the firms will soon see the need to offshore in order to save costs.
Sudin Apte, an analyst at Forrester, said: "They will start with projects offshore that involve 30 to 40 people on a project, and then ramp up quickly."
However, Indian companies are increasingly looking to the European market following fears of a recession in the US.
Some firms, like Infosys Technologies, have set up facilities in Europe, to specifically target this market.
While US companies account for around 60 per cent of all Indian outsourcing revenue, European firms, except Germany and the UK, prefer a certain amount of local presence from their service provider.
It was recently reported that companies are looking for a cheaper outsourcing alternative to India.
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