European efforts to cut defense spending will lead to outsourcing services and benefits for the support industry.

International market research firm Frost and Sullivan, in its "European Defense Support in Service Market Assessment," forecasts the total support in service outsource spending in Europe will increase from $13.77 billion 2011 to $22.07 billion in 2020.

Modernization, training and heavy maintenance support for platforms are areas most likely to be outsourced, it said.

"More Ministries of Defense are now considering or employing a multi-source level of support, which includes an amalgamation of the different segments to suit their needs," says Anthony Leather, research analyst for Frost and Sullivan Aerospace, Defense and Security group.

Traditionally air platforms have been the first to be outsourced. They are more complex, the costs of maintenance are high and this is where most benefit and cost savings can occur from industry involvement. Frost and Sullivan said that around 52 percent of outsourced spending over the next 10 years will be on air platforms.

The level of industry integration in support in service differs throughout Europe. Britain has led the way, incorporating industry into their support model. Many western European and Nordic countries are following this approach with France and Spain likely to be the next countries to outsource more of their support.

Many armed forces, like Germany's and Italy's, have built large in-house capabilities to maintain their equipment. This has required substantial investment and time, making them reluctant to change their support model and turn to industry, Frost and Sullivan said.

"Nevertheless, budget pressures are forcing countries to be more efficient and explore new support models," the report said.

The concept of outsourcing support to industry is growing in Eastern Europe but not to the extent of other regions. There are still many Russian-made platforms in the Eastern European market, which limits support opportunity.

Creating strategic partnerships with industry can provide opportunities to achieve cost savings and maintain capability, the report said. This arrangement has proven to be successful; especially in the role that industry has played alongside military support personnel in Afghanistan.

"Further industry integration in support is inevitable for armed forces throughout Europe, however the extent of this involvement remains under the control of the (Ministries of Defense) for now," Leather said.

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