Firms Looking to Eastern Europe for IT Outsourcing
IT and software development outsourcing firms in eastern Europe are finding their services increasingly in demand, according to recent reports.
Feb 05, 2007
The relatively low cost of IT outsourcing services in eastern European countries such as Russia and Poland, coupled with their close proximity to western Europe, is encouraging many western companies to send large parts of their IT infrastructure and software development programmes east, claims ComputerWeekly.
Cities such as Moscow and Krakow are proving to be hubs of outsourcing activity and it is easy to see why, claims the management consultancy McKinsey.
Average wages are in line with those in India, which is another main source of IT outsourcing, while the talent pool in eastern Europe is immense, with a large number of highly skilled graduates looking for technology jobs.
In addition, the increasingly solid infrastructure of former Eastern Bloc countries ensures that firms can be confident that their investment is low-risk.
"You can drink the water and you do not have to take the injections," remarked Daniel Marovitz, chief operating officer of technology at Deutsche Bank, which has outsourced the development of its customer relationship management system to Russia.
"These sound like small things, but when you have to go away and leave your family they become important," he added to ComputerWeekly.
Cities such as Moscow and Krakow are proving to be hubs of outsourcing activity and it is easy to see why, claims the management consultancy McKinsey.
Average wages are in line with those in India, which is another main source of IT outsourcing, while the talent pool in eastern Europe is immense, with a large number of highly skilled graduates looking for technology jobs.
In addition, the increasingly solid infrastructure of former Eastern Bloc countries ensures that firms can be confident that their investment is low-risk.
"You can drink the water and you do not have to take the injections," remarked Daniel Marovitz, chief operating officer of technology at Deutsche Bank, which has outsourced the development of its customer relationship management system to Russia.
"These sound like small things, but when you have to go away and leave your family they become important," he added to ComputerWeekly.