According to a new report, outsourcing and offshoring among European businesses are set to increase as boardrooms continue to pressure their CIOs for more IT cost savings. The survey of 161 CIOs and IT executives in European organizations by Capgemini has found that 58% of the respondents are considering outsourcing and 39% are considering offshoring in the next two years.

According to the report, the cost chase is far from over and CIOs remain under heavy pressure, facing challenges from increasingly common, low-cost delivery options such as offshoring and distributed delivery.

However, offshore outsourcing remains the preserve of big global companies, and the survey has found that 80% of those who are currently using offshore IT services have an IT budget of more than $47.5 million per year.

The report adds that this may change in the future as the offshore market matures, enabling mid-sized companies to use offshore delivery models.