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By Lisa Burroughes, 5 June 2001 15:30

NEWS Offshore development companies are experiencing a boom thanks to the global economic downturn. Many global corporates who had previously been reluctant to surrender control over program development are now being forced to consider it, according to Ross Perot Jnr, CEO and president of Perot Systems. In an interview with silicon.com, Perot Jnr, who assumed control of the global IT services company from his father last year, said: "Even companies that are purely based in the US are having to go that way now." Perot Systems owns offshore outsourcing company HPS, and claims almost all its European clients are already doing some development offshore. "It's easier to get European companies to outsource their programme development but the US recession is forcing companies to outsource not just through cost but also speed and efficiency," he said. Popular projects going offshore include euro conversion, which many of the large financial institutions are opting for. Perot said the 3,000 strong HPS team in India is likely to expand in the next year as a result. India is the offshore software development centre of choice for 47 per cent of UK IT managers due to cost, availability and quality according to a report by international market research firm SWR Worldwide. Perot Systems' biggest client is UBS Warburg, who makes up 24 per cent of the company's sales with financial services as a whole making up a significant proportion of the company's revenue. Consequently it has restructured to set up The Financial Services Industry Group which will focus on all its clients in the banking, insurance and financial markets and will be based in Europe.