Welcome to the new IBA Group blog. I’m Mark Kobayashi-Hillary, a writer and blogger based in London, UK, and I’m going to explore some themes related to the global IT services industry on this blog. You can find out more about me and my books and blogs on my website.
Let’s start by exploring the idea of Central and Eastern Europe (CEE) as an outsourcing destination. It’s only natural to ask if the region is still attractive? IBA Group is headquartered in Prague, but they have most of their resource in Belarus, so they do have experience of several CEE markets and therefore some insights into the benefits of working in this region.
But naturally, one of the first questions asked with IT outsourcing is around the cost. And places like the Czech Republic or Belarus can’t compete with the low cost resource available in markets such as China, but then outsourcing your IT is about a blend of attributes, value, not just cost. The countries where IBA operates can compete at around a similar price to India, so that’s a good benchmark to start with, and being in Europe the resource remains local to European companies.
There are some other factors that make this blend of EU and non-EU delivery attractive. Resource in Belarus costs less than in the Czech Republic, but the Czech facilities are covered by international legislation such as the EU Data Protection Directive – essential if you want your team to handle any customer-sensitive data. And having the ability to blend EU and non-EU teams by allowing the EU-based team to anonymise data gives a real cost advantage, with the security of European legislation.
Belarus is not a regular holiday destination for many western Europeans; in fact it remains a bit of a mystery to many. But this can be countered by thinking back a few years to how Eastern Europe has opened up to people from all parts of Europe in general, since liberalisation two decades ago. The Czech Republic is now a common destination for tourists from across Western Europe, making it a comfortable and familiar European city. It’s only a matter of time, and perhaps a budget airline route, before Minsk enjoys the same popularity.
In fact, Belarus offers some of the best technology scientists in the world. The former Soviet Computer Research Institute and Computer Production Association founded the IBA Group (in 1993, after the end of the Soviet Union), and though the Soviet empire has long crumbled, there remains a legacy of gurus and expertise in areas such as IBM mainframes – the classic legacy technologies still used by banks and insurance companies the world over. Many of the gurus from the Soviet research institutes came to work at IBA.
This blog is published by IBA Group, but if it were just a regular advert for the company then it’s unlikely you would return to read the second one. The aim is to engage and educate, to offer some new opinions on IT services and outsourcing, and in particular on the eastern European market. It’s clear from just thinking about what to enter in this first blog that there is still a lot to learn from the CEE region.
What are your questions? Let’s start a debate…