Karl Flinders of Computer Weekly published some research recently that explored the development of the CEE outsourcing market in some depth.
One of the standout statistics was around the cost of doing IT work in China today, with an average programmer earning about $20,000 a year. This shows that China can no longer be considered a low cost destination for IT outsourcing and of course there are all the associated problems of distance, language, and culture.
But what I found really interesting was the demand for IT workers predicted across Western Europe. Despite the economic difficulties, IT workers are still in demand and the data published in Computer Weekly shows that by 2015 there will be a deficit in many European nations. For instance, the UK will need 55,000 more IT professionals that it will have, Germany will need 75,000 more, and Italy 55,000 more.
With the costs soaring for IT work in Asia, and Western European countries still needing an enormous amount of IT work – and not having enough IT workers – the argument for working with companies based in Eastern Europe is obvious.
When companies with a good reputation and great expertise can be found just a short flight away – close enough for a day trip – it makes sense to explore this option for many more reasons than price alone. As the example of average costs in China demonstrates, IT outsourcing is today about a lot more than low cost offshoring. Europe needs to work together to plug the skilled worker deficit.