Home » Outsourcing Analytics (Page 67)

New brooms sweep clean. And often, in business arenas, the broom has outsourcing on it, especially in company cultures where the practice already flourishes.

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Currently Ukraine boasts the fastest-growing software development Industry in Eastern Europe. In its study Goaleurope, an Eastern European advisory firm, estimated the size of the outsourcing industry in Ukraine reached over US$246 million in 2006 and employed over 7,500 people, and the figures are increasing.

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Hungary, a beautiful country conveniently located in Central Europe, successfully made a transition from a centrally planned to a market economy at the end of the 1980s.

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IT outsourcing evolves and current trends are more than positive for Eastern European outsourcing vendors that come to the global arena and prove as solid players that shall be taken seriously now. The findings of the study attest that Russian and Eastern European software development companies have joined the Big League of IT outsourcing services providers to compete with India-based recognized giants.

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For a long time the management of EPAM Systems, Eastern Europe’s largest software development company, was looking to enter the Russian outsourcing market. At the same time the labor market in Belarus, with a population of nearly 10 million and EPAM’s first offshore location, began heating up.

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To better understand key market trends and how they affect the mature IT outsourcing market, Everest conducted an ITO study during the third quarter of 2007.

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What does 2008 have in store for the services market? Outsourcing relationships and destinations are changing, and vendor management is as important as ever, according to new analyst reports.

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The global outsourcing market continues to grow at a steady pace, with a forecast growth rate of 8.1 percent in 2008. But healthy growth rates for outsourcing do not necessarily mean that user organizations are without challenges.

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The benefits of outsourcing can be substantial. Aside from cost savings, there are other gains your business can make.

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As BPO outsourcing matures and more and more companies are getting into the fray, increasing numbers of companies are now also realizing that perhaps outsourcing hasn’t been such a good deal. The “lift and shift” mentality so commonly afflicting companies is coming back to haunt them in the final analysis – issues from poor training and productivity, management and technology do not go away, in spite of the work being done elsewhere.

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