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BAA, the worlds leading Airport Group, has awarded a 5-year Application Management outsourcing contract to LogicaCMG. Under this new agreement, LogicaCMG, one of Europe’s leading IT and business services companies will work with BAA and its partners to transform and manage most of BAA’s current software applications.

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EPAM Systems, Inc., the leading global software engineering outsourcing provider with development centers in Central and Eastern Europe, announced today that it has reconfirmed its status as the foremost IT outsourcing vendor in Europe.

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According to IDC forecasts, the global IT offshore outsourcing market growth will be 7 billion US dollars in 2008 to 17 billion US dollars, a compound annual growth rate (CAGR) of about 20%.

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For a long time the management of EPAM Systems, Eastern Europe’s largest software development company, was looking to enter the Russian outsourcing market. At the same time the labor market in Belarus, with a population of nearly 10 million and EPAM’s first offshore location, began heating up.

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To better understand key market trends and how they affect the mature IT outsourcing market, Everest conducted an ITO study during the third quarter of 2007.

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LogicaCMG is creating a new Outsourcing Services division, which develops its existing outsourcing model, in response to customer demand across Europe.

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What does 2008 have in store for the services market? Outsourcing relationships and destinations are changing, and vendor management is as important as ever, according to new analyst reports.

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The global outsourcing market continues to grow at a steady pace, with a forecast growth rate of 8.1 percent in 2008. But healthy growth rates for outsourcing do not necessarily mean that user organizations are without challenges.

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Labor will be the driving factor that changes outsourcing in 2008. How companies determine who to hire and where they will work will affect the industry in two ways.

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As BPO outsourcing matures and more and more companies are getting into the fray, increasing numbers of companies are now also realizing that perhaps outsourcing hasn’t been such a good deal. The “lift and shift” mentality so commonly afflicting companies is coming back to haunt them in the final analysis – issues from poor training and productivity, management and technology do not go away, in spite of the work being done elsewhere.

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