Index of articles, July 22, 2007

Offshore Outsourcing to Eastern Europe

By Bas de Baar

With the growing fashion and dependency on offshore outsourcing, many countries of Eastern Europe has come up as an alternative to traditional offshore destinations. A highly skilled workforce, shorter journey times, smaller time-zone differences, European language skills and western culture all contribute to this attraction.

As an impact of it, many IT executives in the US and Western Europe have moved to Eastern Europe for outsourcing and system and development needs. The major work areas in Eastern Europe include senior managers, decision makers, business consultants and advisors.

Although the country (Eastern Europe) currently has a small number of offshore projects, it promises to rise up in near future with the upcoming markets like Czech Republic taking third place after India and China in offshore outsourcing. The other attractive offshore work centers in Eastern Europe include Russia, Ukraine, Poland, Belarus and the Baltic.

These markets not only offer low cost skilled labor force, but also an attractive regulatory environment with a close proximity and cultural ties to Western Europe. The other advantages of moving to Eastern Europe offshore markets are connected to its political stability, government commitment to the industry, highly skilled labor force and minimal socio-cultural differences found in these countries. Many companies also hold the view that work performed in Eastern European countries is much more scientifically intensive than that which is produced in other markets.

Even though India has earned for itself a reputation worldwide as leading outsourcing destination, the political conditions of country like the ongoing conflict between India, Pakistan and Sri Lanka, have forced the companies to look for an alternative or at least a second source. Eastern Europe has highly efficient school system that adds thousands of skilled labor every year to its professionals. They deliver faster and higher quality solutions at lower costs.

Eastern Europe is still too far to be hit by the boom of offshore outsourcing that is seen in the top ranking markets of the world and hence, has been successfully able to leave an unmarked impression over its customers, especially the Western countries that have worked with the partners of Eastern Europe recently have been impressed by their professionalism and timelessness.

Thus we can say that Eastern European countries are creating a buzz in the outsourcing industry.

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