A New Trend in Outsourcing: Eastern Europe

Home/Publications/CIDM eNews/Information Management News 05.07/A New Trend in Outsourcing: Eastern Europe

Anne S. Bovard, Comtech Services, Inc.

Over the past few years, India has emerged as a giant in its ability to attract and service outsourcing needs. The combination of low wages and a large English-speaking base of people made India the premier choice for global companies to diversify their operations, especially in call centers.

There appears however, to be a change in the prevailing corporate strategy. An April 19th New York Times article by John Tagliabue, indicates that there may be a new darling in the outsourcing scene.

Regions of Eastern Europe, including the Czech Republic, Romania, and Hungary, have recently captured a market share of outsourced bookkeeping, accounting, computer, and personnel services. The labor pool of this region offers highly skilled, multilingual workers whose wage demand is on the low end of the global average.

Western European companies, according to Mr. Tagliabue, have popularized the use of their Eastern European neighbors for outsourcing efforts. But some US companies have joined the ranks as well, including IBM, Dell, and Morgan Stanley. Given the region’s growing political and economic stability, it is likely to continue to attract interest as a viable outsourcing resource. If only for the company considering translation, the multilingual population to be found in Eastern Europe appears to be worth investigation.

To read John Tagliabue’s article, please visit:
New York Times article: Eastern Europe Becomes a Center for Outsourcing

For further reading, please see: Safar, L. and Quintero, A. 2007. Central and Eastern Europe in the Global Context: How the business potential of CEE Compares with that of China or India. tcworld, March, 23-25.

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