The Burgeoning capitals of the new software trail, as the Eastern Europe becomes the popular destinantion for nearshoring are the Moscow, Krekow and the Chisanau. There so many attractions of the former Eastern bloc, this is for the companies that is wishing to cut costs and develop their software overseas. The time difference is not too great and last, but not least, it is brimming with computer and programming skills, this is a relatively short hop by the plane. For the Eastern Europe’s, the management consultancy Mckinsey cites several reason. The low wage levels was comparable to India, while slow wage inflation and abundant output of talent from local universities look likely to keep the region economically competitive for at least 15 years. The reliable, existing infrastructure make it a low-risk location for the investment with the geographical and the cultural proximity to the Western Europe. It has developed the customers relationship management system in Moscow in the Global investment bank Deutsche Bank. It has also found the commute to be relatively painless. The trip when you were getting the experience of visiting the Western city. Daniel Marovitz, the chief operating officer of technology, global banking said that, “You can drink the water and you do not have to take the injections. These sound like small things, but when you have to go away and leave your family they become important,” By the legacy of the Soviet technical skills to the Global telecomms carrier Cable and wireless was similarity impressed. The technical Directo9r John Candish outsourced the development of the software hub to the moldova and it has not needed to visit the one and a half years, this is because of the project that runs so smoothly. The chief operating officer of technology, global banking, Daniel Marovitz said agian that “There is a heritage of centralised management of technology factories that lost their funding, so now there are a lot of highly skilled people and a lack of jobs,”. There was only one percent of the world’s total outsourcing. This was currently located in the Eastern Europe, the region emerged as one of the favorite location for the western european comapanies to invest in between the 2004 and 2006. According to McKinsey predicts that offshoring activity in Eastern Europe could triple to more than 130,000 jobs by the end of 2008. Deutsche Bank has its own nearshore facility in Moscow “We are a really big firm and employ thousands of developers both in-house and offshore. Traditionally, we have used India extensively, but Russia has become pretty important to us recently,”Marovits says. then he sais that “Both locations have distinct merits that have to be matched against the needs of an individual project, One of the biggest differences between India and Russia – travel time and time zones aside – is their education systems and the type of software engineer and programmer that they produce.” he continuously say that “The Russian education system is modelled on the Western system and is based on a model of theory and philosophy; a programmer likes to get deep into philosophy and principles of a system,” Outsourcing helps to improve the things that needs to be better. Outsourcing is a way of having a good strategy and at the same time a techniques in the problems.
Reference:
http://www.computerweekly.com/Articles/2007/01/25/221384/Outsourcing-options-in-Eastern-Europe.htm
