Eastern Europe to Dominate the IT Outsourcing Market

IBA Group
Mark Kobayashi-Hillary

A recent article in the IT Outsourcing News explores the various reasons it can be worth exploring the Eastern European IT market. Of course, all the usual benefits are listed:

• Considerable budget savings;
• Ability to focus on core competencies;
• Extensive experience of an outsourcing subcontractor;
• Speed increase in projects tasks solutions;

And many more, but I don’t want to just list the general benefits of outsourcing here. What was more interesting in the article was the reference to the analyst and research firm Tholons Company report ‘2012 Top 100 Outsourcing Destinations.’

Eastern European countries (the CEE region) have covered around a quarter of the list of the most attractive countries for Business Process Outsourcing (BPO) destinations from all over the world.

Considering the relatively small size of the CEE region compared to the rest of the world, to see a quarter of the best global BPO destinations in the CEE region does indicate that the region has some special advantages. The Tholons view of the major reasons for this CEE dominance is:

• Relatively low costs since a number of countries are not EU members; the manpower and well-established infrastructure allow customers to reduce their budget without losing service quality.

• Proximity to their permanent clients from Western Europe due to convenient geographical location, visa-free or simplified conditions (depending on a specific country) for EU citizens.

• Convenience in communications and control – almost all CEE representatives are located in the same or very similar time zone with no communicational barrier as English has remained to be an international language in CEE for quite a long period of time.

• Similar set of rules in business making process: ISO standards are adopted as state acts in the majority of CEE countries and are obligatory for some industries.

• A very high educational background as normal.

So don’t just take our word for it that you should be exploring this region. When analysts produce lists of the best places to do BPO and over a quarter of the locations are in CEE it should make the world take notice.

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