According to two recent studies, Eastern Europe is becoming an ever-growing destination for outsourcing software, as companies are beginning to consider not only low costs, but cost-effectiveness and proximity as factors in their decision making.
Top countries for outsourcing software
A report produced by AT Kearney, who monitor 55 countries based on three factors: financial attractiveness, people skills and availability, has revealed that outsourcing software from Eastern Europe is very much on the rise with Poland being ranked in 10th place for employment costs – the first European country on the list, followed closely by Bulgaria and Romania in 12th and 13th place respectively, with software heavyweights China and India remaining in the top spots.
Why Eastern Europe?
Although Eastern Europe may not be the cheapest destination for businesses to outsource software from, it can place itself in direct competition with the top outsourcing destinations, China and India, through arguing that it provides better product quality, high-level skill sets, proximity to Western Europe and better business environments. In relation to this, Johan Gott, AT Kearney, said “the business environment is much more benign than, say, India.”
Great quality is also another factor contributing to the destinations rise. Luxoft’s Global Communications VP Alina Plaia said, “Our experience shows it’s extremely difficult to find such quality in other parts of the world.”
Written by Jordan Platt