Europe 'next frontier' for IT: Barclays

Europe to offer huge opportunity as deals worth $116 bn to come up for renewal during 2014-2017, according to IDC

Amid efforts to reduce dependence on the US, Indian information technology (IT) services companies have been witnessing an increase in revenue share from Europe. The trend is likely to continue in view of new business and deal renewal opportunities in the region, brokerage firm Barclays Capital has said in a report.

Over the past 12 months, the top four Indian IT companies have seen a 350 basis-point increase in revenue from Europe, which makes for around a fourth of their overall revenue, the report said. Europe is the second largest market for the sector.

According to IDC, deals worth $116 billion (around Rs 7,20,186 crore) would come up for renewal between July and June 2017 in Europe.

It added Indian companies need to invest more to tackle language barriers and stricter labour laws in the region. According to Information Services Group (ISG), restructuring activity is likely to grow further in Europe, as legacy systems are being rebid.