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    IT Outsourcing in Central and Eastern Europe 2009

    In the Global Outsourcing Industrythe alignment of the forces will change, there was no doubt on it. There were some of the dominant reasons further to big changes.  The first big change is that the “Current economic crisis swept the global markets and already hit the IT industries around the world. In this tough environment organizations have to carefully weigh all benefits and risks of sending work to outsourcing providers as well as once again reexamine what might be outsourced and what should stay in-house.” then “Recent scandals in Indian IT outsourcing markets where service providers are losing their advantage against global competitors for providing IT outsourcing services as customer satisfaction levels fall (satisfaction with Satyam declined 15%, TCS dropped 8% and Wipro fell 4%)” then “Europe has a record number of contracts were signed during last year and finally outruns US for outsourcing deals in 2008, despite a 50 per cent fall in the value of deals in the second half of the year” then the “Recent Gartner’s report of TOP30 outsourcing destinations claims that BRIC (Brazil, Russia, India and China) dominated as offshore leaders in 2008, but it has also marked the rise of new outsourcing destinations as well as well scoring of CEE countries. Because of India’s higher IT staff turnover and recent horror stories companies are choosing offshore providers in Eastern Europe where language skills are better and outsourcing providers appear to have a more in-depth understanding of their clients than competitors farther east.” Those facts that was strengthened the position of the Central and Eastern Europe, the regions as the major player in the global IT outsourcing market in terms of market volume, the number of IT professionals and IT companies offering outsourcing services. The increase of the demand of the Nearshoring services is that the services was also caused by the general interest of the EU companies in entering the CEE market.  The CEE countries was still more expensive if compared to their Asian competitors such as India or China. However, Gartner’s outsourcing report claims that recent EU entrants Slovakia and Romania, together with Russia and Ukraine were scored well on cost grounds and the CEE region whilst far from homogenous, enjoys close geographical and cultural links, particularly with the Western European markets.  The Eastern Europe has highly efficient school system, it adds the thousand of skilled labor in every year to its professionals. The quality that becomes more important is that during the recessionary times and the outsourcing was not just as way to cut costs anymore, the customer wants to get a better business processes from the outsourcing providers,. The eastern europe has highly efficient. The Soviet Union’s solid legacy in the fundamental sciences provides students with a strong education in numerous technical disciplines. According to the GoalEurope, there are 30,000 IT graduates only in Ukraine every year. With government commitment to the industry there is highly skilled labor force with minimal socio-cultural differences found in CEE countries. The outsourcing has a big role in the society. It helps every business to solve the problems.





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