CENTRAL AND EASTERN EUROPE IT OUTSOURCING REVIEW: Q1 2009
TEAM International, St. Mary, Florida, Tuesday, September 1, 2009
ST. MARY, FLORIDA - TEAM International provides a brief overview of Central and Eastern Europe’s progress as an attractive and promising IT offshore outsourcing destination.
Recent research commissioned jointly by Central and Eastern European Outsourcing Association (CEEOA) and Council of European Professional Informatics Societies (CEPIS), confirms active development of IT offshore outsourcing markets in Central and Eastern Europe (CEE) in general and Ukraine in particular.
Central and Eastern Europe IT Outsourcing Review’s 2008 research suggests that CEE are gradually transforming from the fringe to preferred
locations in the global outsourcing market.
REVIEW SUMMARY:
(1) More clients from Western Europe are choosing near-shoring IT functions to their less developed European neighbors rather than outsourcing to
traditional Asian destinations.
Organizations are no longer satisfied with just low-cost and are focusing on vendors’ competence, high-tech know-how and staff integration. CEE
countries consistently execute high quality projects and have shown business and technical competence and cultural compatibility with customers from
Western Europe and North America.
(2) The CEE region is ranked No 3-4 in the global marketplace in terms of the number of people involved in IT outsourcing and the value of provided
services respectively.
(3) The CEE countries are notable for technology-oriented educational system and a solid Research & Development foundation.
(4) In 2008 CEE faced a small number of company closures and staff reduction (5-7% across the industry). In 2009 many new businesses and start-up
projects boomed in the region.
(5) Despite the economic downturn, rates remained relatively stable in Q1 2009. However, a considerable rate drop is predicted to take place in Q2.
MOST DISTINGUISHING FINDINGS RELATES TO UKRAINE:
(1) Ukraine is ranked No 1 in terms of the market value, the main indicator of IT outsourcing market development. In 2008 Ukraine’s market value equaled
$530 million.
(2) Ukraine is ranked No 1 in terms of the number of companies currently doing business in the CEE. In 2008 it was estimated that Ukraine had
approximately 850 offshore outsourcing services providers.
(3) Ukraine is ranked No 1 in terms of the number of IT professionals based on 2008 estimates with approximately 14,400 IT specialists. In contrast, the
Czech Republic, Serbia and other CEE countries employ approximately 4,000 – 5,000.
(4) Ukraine is ranked No 9 in terms of market rates. Ukrainian rates range from $28,200 to $56,840.
These findings reveal that the Ukraine is a country with great potential in becoming a powerful leader in the CEE outsourcing market.
The research indicates that CEE countries are aggressively increasing their ability to compete with the traditional outsourcing destinations and are able to offer clients from different world regions state-of-the-art product and service quality, competitive rates and technological innovations. (Based on ‘Central and Eastern Europe IT Outsourcing Review 2008’)
NOTE: Press Information: TEAM International, 59 Skyline Drive Suite 1100, Lake Mary, Fl 32746. Contact Person: Viktor Bogdanov, Content Writer, Phone: (407) 708-1143, Web: www.teaminternational.comLINK: http://www.pr-inside.com/central-and-eastern-europe-it-outsourcing-r1461949.htm