New Outsourcing Guideline from EC

Filed in archive Outsourcing News on August 29, 2007

The European Commission has set its tail in outsourcing-literally.

This is due to the new competition guideline that the European Commission has set for companies that are considering outsourcing.

Aside from that, the guideline is extremely useful when an outsourcing supplier is buying all or part of the IT assets being outsourced by a company like a joint venture arrangement. This kind of deal may need to go to the EC for approval.

Another important information from the new deal includes this fact:
The threshold test for deals that will need EC approval is if the supplier has a turnover of €5bn globally and €250m in Europe, and if the potential turnover of the outsourced IT operation also exceeds €250m per year.

Personally, this sounds that EC would be more stricter in outsourcing. Though that is the case, the security for such outsourcing deals could be more secure because of the implementation of such guidelines.