Central & Eastern Europe it Outsourcing Review 2007 - Brief Summary

Europe has enormous potential for development of ITthe lead regarding the number of IT companies. When
Outsourcing industry. In accordance with experts'calculating the number of IT companies, considered
opinions this region will definitely keep the appreciationwere the IT and software development companies
of the customers from all over the world for yetproviding outsourcing services with more than 10
another decade. It will attract new clients byemployees. Central and Eastern European region is
professionalism of the experts, low labor cost, friendlysatiated with the small companies undergoing intensive
legislation as well as by geographical vicinity anddevelopment. Low threshold was taken purposefully in
cultural connection to the Western Europe.order to provide a complete market snapshot for each
The main objective of this research conducted by thecountry.
Ukrainian Hi-Tech Initiative with the support ofThe attempt was made to calculate also minimum and
ITONews.eu, news portal, Baltic Outsourcingmaximum annual cost per service of one IT
Association (Lithuania), JNN Consult Ltd (Bulgaria) andprofessional for the end customer in each of the
Employers' Association of the Software and Servicescountries. Among the most "expensive" countries
Industry (Romania) is formation of the complete viewwere Poland, Hungary, Romania, Czech Republic and
on the potential of CEE region - the promising clusterEstonia.
for nearshore IT Outsourcing for the WesternWhen calculating the number of professionals,
European countries and offshore IT Outsourcing forconsidered were only those IT specialists that are
the US.involved into IT Outsourcing less administrative
Main indicators of IT Outsourcing industry developmentpersonnel. Other estimation data sources were general
(market volume, number of IT professionals, number ofinformation about each country such as population, as
IT companies providing outsourcing services, cost ofwell as review respondents' feedback on the number
one professional for the end customer) take Centralof companies and the average number of employees
and Eastern Europe to the level of such globalin each of them. Ukraine, Romania, Belarus, Hungary,
outsourcing centers as India, China, and Russia.Bulgaria were the countries with the greatest number
The data, presented by the largest IT companies andof IT professionals.
national IT Associations showed that in 2007 ITIndependent experts Christian Berner, Natasha Starkell,
outsourcing market volume of CEE region reached 3Parvis Hanson, and Maryna Yaroshchuk provided their
bln US dollars. Among 16 examined countries, theviews on the IT Outsourcing markets of Central and
leading in market volume were: Ukraine, Romania,Eastern European region.
Hungary, Poland and Czech Republic. The scope ofThe research was conducted in August - February
final IT products served as the basis for the calculation2007-2008. National IT Associations and largest IT
of market volume.companies from 16 countries of the region kindly
Ukraine, Romania, Belarus, Poland and Bulgaria were inresponded to the research.