European IT Outsourcing Trends: CEE Gains Momentum

IT Sourcing Europe, a European company specializing in nearshore IT outsourcing consultancy as well as market research and analysis, has announced the completion of its “European IT Outsourcing (ITO) Intelligence Report 2010: Central and Eastern Europe”. This is a comprehensive study of the European IT outsourcing demand and market trends. The Report targets at all types of Western European companies who either outsource or plan to outsource their IT functions nearshore.

The IT Sourcing Europe’s Report shows that:

  • Outsourcing to Central and Eastern Europe is expected to grow over the next 10 years;
  • Investors and management anticipate 30% revenue growth in 2010;
  • CEE, above all regions, is expected to leverage its competitive advantage in the high-growth areas of offshoring and nearshoring and possibly move ahead as the most attractive labour arbitrage alternative for Western European clients;
  • Low labour costs are not the only grounds for outsourcing. The human capital of the CEE region is one of the primary reasons why Western companies choose to outsource there.

Regarding the major ITO trends, 2010 anticipates a significant change in the European IT Outsourcing landscape:

  • More small and mid-sized organizations are expected to outsource their software/web development nearshore, compared to pre-crisis times.
  • Additionally, buyers become more demanding and challenge their ITO partners to differentiate their position and value.
  • Today’s Western European companies are seeking a combination of speed, cost management and growth supported by business agility and technological innovation.

Source: EPAM Systems

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