The consulting industry in the US labors under the ominous shadow of a slowdown in US tech spending, and dozens of benched consultants. This should, it seems, be a global phenomenon. Perhaps we in the US are myopic, but usually when the US struggles the rest of the world feels the crunch — in fact when we catch a cold the world gets pneumonia. But across the Atlantic in Europe, the climate for IT consulting feels more like Menlo Park circa 1999 than like post tech boom America. Let me qualify, the irrational exuberance is not there, but definitely times are better than in the US.
In countries like the UK, France and others that have traditionally been dominated by inefficient state-run entities, for transportation or healthcare, there is really a move to optimize systems through technology. For example, the UK government is striving to dramatically cut costs for the country’s beleaguered national healthcare service. This creates a huge opportunity for IT services firms, new technology firms, and especially Indian companies that have supported systems integrators in the US.

This new demand for services is huge, talent is scarce, and business is booming. The need is not just for basic IT services but also supply chain optimization, streamlining processes and connecting with the customer via all means including the Internet. The new buzzwords seem to be cost avoidance and reducing the cost of customer acquisition and retention. Additionally, logistics management companies seem to finally have a better chance of actually reducing costs.

Traditionally, the nature of the EU, with its many languages and currencies, has been complex and has created additional barriers to entry for global companies. But the US has led the charge in adapting systems and processes that reflect the global nature of business. These endeavors, while often led by the large systems integrators, have been populated by the Indian middle tier providers such as Infosys, Wipro and the iGATE group of companies. As a result of this massive experience set and knowledge, these companies seem to be ready to take on a leadership role in the EU.