During my time working in the outsourcing industry a lot of colleagues,
potential clients and general people interested in this field have approached me with the following question:
WHY EASTERN EUROPE?
In a time where globalization opens possibilities to make it increasingly easy to work remote with people from all over the world, in one corner a new IT-outsourcing destiny of choice is emerging. The Eastern European region long being thought of as a risky destination to outsource, has steadily become a serious outsourcing delivery destination due to the following reasons:
- Traditionally, already since the communist times the educational systems in this region have been very IT & math-focused. Excellent education programs in STEM (Science, Technology, Engineering and Mathematics) have been paramount in Eastern European schools and universities for several decades. Children in these countries use to work on advanced mathematical concepts in school, in comparison to children from many western countries who used to learn it only in university. Therefore it does not come as a surprise that a wealth of engineers and people skilled with IT knowledge come from the region between Latvia in the North and Bulgaria in the South.
- Governments and Institutions of any kind have realized the high amount of benefits a national specialization in IT is having on their economies. The governments of Poland, Ukraine and Romania strongly support the IT sector and embrace this concept. Substantial tax incentives, lower labour costs and rates of attrition to work contribute to the desire of clients to look for companies in these territories.
- There are many obstacles people face when they try to set up a business producing “real goods”. On the contrary it is far easier to set up an IT-Company since you need nothing more than an office and enough talented people with laptops to start with. As go-to-market strategies become leaner & governments reduce bureaucratic founding procedures the obstacles in building a company become much lower.
Well, we have stated the reasons why outsourcing to Eastern Europe should be more than just a side note, but actually really considered if there is a project you need assistance with. Now, it is time to give you a few examples for some IT hubs in this region and why you should opt for them.
Also known as the Silicon Valley of Eastern Europe, Cracow has become the place to be if you are looking for software development outsourcing. There are more benefits than in almost any other city in this region. Giving the fact, that IT professionals aside from their well-known expertise, have a very similar business-approach and work-style found in Western Europe. Poland is being ranked as the #3 country in the WORLD for the quality of software developers – that alone makes Cracow a paradise for outsourcing and nearshoring.
The IT hub of Romania is the epicenter of skilled software developers in this region. It is one of the fastest growing markets in the EU in terms of IT outsourcing services and provides companies various reasons to take a serious look at them as a potential partner: Highly skilled labour pools and a great price-quality ratio provide professionals with a multidisciplinary background.
One of the fastest-evolving developer communities can be found in the capital of Bulgaria. A lot of tech companies have already invested and found outsourcing partners in one of the IT startup-friendliest countries in Europe. The highly skilled and experienced professionals, as well as a friendly IT ecosystem help to rise the economic situation of that country.
Nevertheless, there are a lot more interesting countries that can supply companies with IT experts and a great track record of providing excellent work for their clients. The main reasons why companies look especially in Eastern Europe for an outsourcing provider are the low cultural as well as timezone differences in comparison to India for example. To put another fact into the mix: Statistics show that from the 12 best IT outsourcing countries more than 50% can be found in the Eastern part of Europe. Many companies have already done their homework and have found their outsourcing partner there.
Eastern Europe surprises us with a vast offer of skilled developers. Multiple tax and labour-advantages and an unbeatable price-quality ratio should give every company enough reason to consider this corner of the world as their Outsourcing-Destination.