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Outsourcing has become a “charged’ word. It is an important concept to understand because of its business applications (both for corporations and for small businesses) and because of its political implications.

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Where can a mid-market company find outsourced solutions that offer the capabilities of a tier-one service provider for large enterprises? It’s a question that mid-market companies have asked a lot lately as they are increasingly adopting the outsourcing model for their back-office and IT outsourcing processes.

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EXPERT VIEW:Ukraine is set to benefit most from the new value chain in IT services

CIO’s in Western Europe, especially in Germany, Austria and Switzerland are facing a serious challenge. In 2007, for the first time since the peak of the internet bubble in 2000, the demand for IT specialists exceeded the supply. The last BITKOM survey indicated that 43% of the German companies encounter serious difficulties in finding appropriate IT staff.

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EXPERT VIEW: Eastern Europe Review

In our advisory work at GoalEurope when IT executives came to us to help find the best possible location to outsource software development, we often recommended Ukraine.

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Central and Eastern Europe (CEE) is an important region for services offshoring. The imports of IT-based services from Central and Eastern Europe into the EU-15 rose by an average of 13% per year between 1992 and 2007. Imports from India, by comparison, increased only slightly faster during the same period at 14% per year.

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EXPERT VIEW: Drivers of IT industry in Ukraine, Bulgaria and Romania

In the era of global knowledge-based economy, informational technology (IT) plays a unique role in increasing competitiveness of all the different sectors of the economy and the country as a whole, because IT helps to spur productivity in the production process, to bring businesses to the global level, to make government more transparent and keep society informed.

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COUNTRY ANALYSIS: IT Outsourcing Market Volume in CEE Countries in 2007

Market volume is the main indicator of the development of IT Outsourcing industry in the country. The scope of final IT products in 2007 served as the basis for the calculation of market volume. Other estimation sources were the total number of employees and average rates on the country market.


 

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COUNTRY ANALYSIS: IT Outsourcing Number of Companies in CEE Countries in 2007

Number of companies is one of the key indicators of the country IT Outsourcing market development. When calculating the number of IT companies, considered were only the IT and software development companies providing Outsourcing services and with the staff of more than 5 employees.


 

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COUNTRY ANALYSIS: IT Outsourcing Number of Employees in CEE Countries in 2007

When calculating the number of professionals, considered were only those IT specialists that are involved into IT Outsourcing services less administrative personnel.


 

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COUNTRY ANALYSIS: IT Outsourcing Rates per Year in CEE Countries in 2007

Annual cost per profess-sional means how much the end customer should pay for the services of one IT specialist yearly. This includes: salary, taxes, office facilities, etc.

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