Last week's European Outsourcing Association (EOA) conference in London provided a real insight into how the industry is thinking about itself as economic woes bed in after ten years of life on credit.

Delegates from the UK, Europe, China and the US, and from a range of companies, including media, broadcasting, finance and legal services mixed with outsourcing suppliers in interactive sessions that explored the future of the industry in Europe.

Asked if their company had suffered any negative effects from the credit crunch, over one-third (36%) said yes. A similar figure reported contract negotiations being suspended, while 39% said that budgets were being restricted and eight percent reported terminated contracts. BPO contracts were being affected the most, said 78% of delegates.

By contrast, 24% said the downturn promised greater opportunities to outsource. Sixty-four percent believed the credit crunch was a significant opportunity for the industry, most notably in terms of offshoring, while 59% predicted that global outsourcing will rise over the next five years.

First and foremost this was a European event, of course, and the view from the floor was that outsourcing is becoming an accepted strategy in formerly 'culturally opposed' countries. such as France and Germany, while many saw the possibility of brand-name services arising out of Eastern Europe.

Fifty-nine percent of delegates believed that recent EU entrants Romania and Bulgaria have become more attractive to work with since joining the community.

Asked for their thoughts on the Lisbon Strategy for making the EU the knowledge centre of the world – due to be renewed in just over a year – 32% of delegates (the largest voting bloc) said “We manage to earn a living despite the EU, not thanks to the commissioners”.

In a bear market, the Russian bear – as it so often is – was a divisive issue. Thirty-nine percent of delegates believed Russia is an important part of the European outsourcing picture, while 52% did not even consider it relevant.

Still looking East, just 17% of delegates thought that Indian providers are leaps and bonds ahead of other regions. That said, three-quarters of delegates said that Indian players will inevitably acquire European or American providers.

Talking of acquisitions, the elephant in the room was HP. Unfortunately, just 23% of the conference thought the EDS deal was good news for either HP or EDS customers.

• Apologies for my recent absence from this blog due to a dose of flu. Fully recovered, next week I shall be speaking at the Gartner outsourcing conference in London. I look forward to meeting and talking with you there.