This continues a series of guest columns from practitioners and bloggers I respect. The category - The Real Deal describes them well.
In recent months, I have written about buyers starting to look beyond India for global delivery resources. I have invited executives from firms in E, Europe, S. America, China to write about their value proposition over the next few months.
Arkadiy Dobkin is CEO of Epam, which focuses on software engineering and support and delivers them from Hungary, Russia, Ukraine and Belarus . Arkadiy was recently named one of the "25 most influential consultants" by Consulting Magazine. Scott Schwartzman, SVP of N. America (and formerly with SAP) contributed to this POV on why E. Europe looks more and more attractive.
"With the extraordinary
growth and overall acceptance of offshore outsourcing, companies have flocked
What makes Eastern
Europe an attractive alternative to
Thanks to the “soviet heritage” and the strong emphasis on advanced education in math and the sciences, this region produces thousands of the world’s best software engineers each year. In fact, many multi-national and leading edge technology companies have already discovered and leveraged this highly skilled pool of talent. Eastern European countries, including the former Soviet Union, have seen the IT industry export reach $1 billion in 2005, with 30 percent growth expected in 2006.
The availability of aforementioned talented resources has been a major factor in fueling the growth of this region – but there are many other factors. The region is still in the “early” stages of the growth …and can offer stable teams of people; turnover is relatively low – usually single digit percentage versus double digits in most other regions.
Proximity to the
clients is another key factor driving the growth. Eastern European countries
are easily accessible to their Western European neighbors…..and several countries,
Hungary, are now members of the European Union. This offers Western European companies a “near-shore” alternative - addressing issues around time zones and flexibility to travel on a moments notice. Even for
Lastly, the region has
clearly benefited from the outsourcing pioneers from other regions.
You can email him at Arkadiy_Dobkin@epam.com