A unique fusion of factors and favorable conditions make Eastern Europe the next big thing in outsourcing. The region has been definitely attracting a lot of attention lately as a software development hot spot. The cultural, geographic, and linguistic barriers are significantly lower than in other parts of the world creating excellent opportunities for US and EU clients and luring them into opening offices in Eastern Europe at a rapid pace, partnering with local software companies, and establishing joint labs in the region.
Eastern Europe holds a leading position on the global arena as the most attractive location for outsourcing challenging and sophisticated product and application development. Western clients are increasingly tapping local talent not just for cookie-cutter engineering solutions, but for R&D work and mission-critical software development. Eastern Europe undoubtedly has all the potential to become a major player in the outsourcing segment.
In its latest European IT Outsourcing Intelligence Report, Forrester rated key CEE countries on a 5-point scale, where Ukraine and Poland emerged as obvious market leaders scoring 4,3 and 4 points respectively. None of the rest countries in the region – Russia, Belarus, Romania, and Hungary – scored under 3.
Below we cite an extract from the Forrester’s European IT Outsourcing Intelligence Report highlighting profiles of several CEE countries with their key strengths.
Ukraine:
• Most attractive destination for nearshore software development;
• Low IT salaries, strong R&D, high tech education, innovation, and abundance of IT resources;
• A cost saving of 40-60% compared to inhouse IT spending.
Poland:
• Maturity in BPO markets;
• Excellent place for Business Analytics, HRO, multilingual contact center operations and F&A;
• Krakow, Poland’s second largest city, is in the Tholons’ List of Top 50 Global Emerging Outsourcing Cities.
Hungary:
• Attractive for nearshore IT development;
• Mature BPO market with strong focus on HRO;
• The country’s capital, Budapest, is 7th of 25 safest cities for offshore/nearshore outsourcing.
Russia:
• ITO market value higher than other three countries;
• The country is in Gartner’s List of Top 30 Outsourcing locations;
• Specialized skills in engineering design and R&D services.
Source: Global Services
Eastern Europe holds a leading position on the global arena as the most attractive location for outsourcing challenging and sophisticated product and application development. Western clients are increasingly tapping local talent not just for cookie-cutter engineering solutions, but for R&D work and mission-critical software development. Eastern Europe undoubtedly has all the potential to become a major player in the outsourcing segment.
In its latest European IT Outsourcing Intelligence Report, Forrester rated key CEE countries on a 5-point scale, where Ukraine and Poland emerged as obvious market leaders scoring 4,3 and 4 points respectively. None of the rest countries in the region – Russia, Belarus, Romania, and Hungary – scored under 3.
Below we cite an extract from the Forrester’s European IT Outsourcing Intelligence Report highlighting profiles of several CEE countries with their key strengths.
Ukraine:
• Most attractive destination for nearshore software development;
• Low IT salaries, strong R&D, high tech education, innovation, and abundance of IT resources;
• A cost saving of 40-60% compared to inhouse IT spending.
Poland:
• Maturity in BPO markets;
• Excellent place for Business Analytics, HRO, multilingual contact center operations and F&A;
• Krakow, Poland’s second largest city, is in the Tholons’ List of Top 50 Global Emerging Outsourcing Cities.
Hungary:
• Attractive for nearshore IT development;
• Mature BPO market with strong focus on HRO;
• The country’s capital, Budapest, is 7th of 25 safest cities for offshore/nearshore outsourcing.
Russia:
• ITO market value higher than other three countries;
• The country is in Gartner’s List of Top 30 Outsourcing locations;
• Specialized skills in engineering design and R&D services.
Source: Global Services
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