Outsourcing in Central and Eastern Europe 2009 is a comprehensive resource that describes and analyses the IT outsourcing market in the following CEE countries: Czech Republic, Slovakia, Hungary, Poland, Romania, Bulgaria, Ukraine and Russia.

The report explores and compares both general macroeconomic and market conditions within these countries, while providing in-depth analysis of major trends and projections to 2010. It details the types of services most commonly sought and provided, and identifies the companies and industries that make up the major pool of market participants.

The report features a comparison between the IT outsourcing market, as it exists in the CEE region and that of some of the world’s foremost IT outsourcing locations. Case studies illustrate the types of contracts in place and demonstrate their manner of completion, and the results of a survey of 30 key market players (including in-depth interviews) provide additional insight into opportunities in this growing global and regional market.

Key sections

Section One defines, describes and elaborates on the IT outsourcing market in general. Here the types of services most commonly provided in the marketplace are outlined, along with motivational attributes, benefits and drawbacks and prospects for success in the marketplace for the coming years until 2010.

Section Two focuses on the general macroeconomic conditions that exist in Czech Republic, Slovakia, Hungary, Poland, Romania, Bulgaria, Ukraine and Russia. General economic outlooks are compared, along with important trends and events and their effects on the marketplace.

Countries are compared using factors such as GDP, population, salaries, unemployment levels, investment, educational levels and current levels of consumer spending. Legal and institutional environments are compared between countries, and macroeconomic forecasts for the region until 2010 are provided.

Section Three concentrates on the IT outsourcing markets in each of the CEE countries and the major outsourcing participants. Key market players at work in the region are revealed and described as well as ranked in terms of market attractiveness. M & A activity for IT outsourcing providers is detailed, along with companies and industries producing the greatest demand for IT outsourcing services.

Section Four comprises case studies that illustrate recent major IT outsourcing agreements implemented in CEE countries, as well as survey results containing valuable input on conditions and opportunities from 30 of the market’s key participants.

Report overview

IT Outsourcing in Central and Eastern Europe 2009 provides a comprehensive overview of the IT outsourcing market in the CEE with emphasis on in depth analysis and comparison to other locations where this market is expanding.

The report includes:

• definition of outsourcing/offshoring and explanation of IT outsourcing
• description of the types of IT outsourcing, including business processes such as document management, billing processes, IT management and complete IT outsourcing
• description of software, software service, and IT infrastructure outsourcing
• information on help desk/call centre/telecontres outsourcing
• discussion of motivational appeal of outsourcing IT services, advantages and drawbacks and prospects for the future within the IT industry.

Countries within the CEE (Poland, Russia, Ukraine, Hungary, Romania, Bulgaria and others) differ in the conditions and opportunities that they offer to industry participants.

This report provides the following information and analysis on the macroeconomic conditions as well as comparisons that indicate the most favourable IT outsourcing environments:

• general macroeconomic comparisons between CEE countries
• comparison of vital trends and important events and their market influence
• degree of similarity and difference between countries, with regard to factors such as GDP, population, income, consumer spending, level of education and others
• comparison of the legal and institutional environments in the CEE countries
• forecasts for the IT outsourcing market with relation to expected macroeconomic conditions until 2010 are provided.

The IT outsourcing markets in CEE countries exhibit unique traits that distinguish their capabilities from other currently popular outsourcing locations. Read about these traits and differences, including:

• characteristics of IT outsourcing markets in major CEE countries and of key market players in the region
• recent and projected M&A activity among regional IT outsourcing providers
• factors responsible for driving demand in the marketplace
• internal ranking of countries in the CEE region and external comparison to other global IT outsourcing locations.

IT Outsourcing in Central and Eastern Europe 2009 also uses definitive case studies to illustrate major deals finalized in the region, and gives the reader extra insight into the CEE IT outsourcing market with results of a recent survey of 30 key market players.

Methodology of the report

Executive summary

IT outsourcing characteristics

Definition of outsourcing

Outsourcing/offshoring

Nearshoring

Multi-sourcing

Types of IT outsourcing

Technology services outsourcing

Infrastructure outsourcing

Software development and services

Website development and management

Business process outsourcing (BPO)

Document management outsourcing

Help desk/call centre

Full IT outsourcing

Main reasons for outsourcing

Cost factor

Other reasons

Outsourcing threats and drawbacks

Losing control

Poor communications, limited transparency and culture differences

Hidden costs

Wrong criteria

Human resources culture

Key future trends

Long-term strategies

Consolidation of the BPO segment

Increasing automation

Rising management costs

Document Process Outsourcing (DPO)

New outsourcing IT hubs

Consolidation

Platform solutions

Changing pricing models

General macroeconomic and political outlook of Central and Eastern Europe

Political and institutional overview

Czech Republic, Slovakia, Hungary and Poland

Bulgaria and Romania

Russia and Ukraine

Macroeconomic overview

GDP

Effects of economic crisis

Foreign Direct Investment

Services sector

Labour market and purchasing power

Private consumption

Research and development

Level of engineering graduates

IT outsourcing market in CEE

CEE vs. other major IT outsourcing locations

Price wars

Human resources availability

Cultural differences

The risk factor

CEE IT outsourcing attractiveness

Key players

Mergers & Acquisitions

Outsourcing deals

SWOT analysis

Bulgaria

Czech Republic

Hungary

Poland

Romania

Slovakia

Ukraine

Russia

Supplement: IT outsourcing services providers and IT associations in CEE

Future outlook of IT outsourcing in CEE

Global forecasts

Case studies

IBM’s Polish mood

First Indian outsourcers in Poland

S&T’s Czech venture

A soft Ukrainian landing

Tata in Romania

S&T and Xerox joint venture

Bratislava on the IBM map

Romanian TotalSoft

EPAM’s European journey

CEE forecasts

Market value

IT outsourcing-oriented industries

Benefits

Barriers

IT outsourcing activities

Consolidation process

Advantages of particular CEE countries