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CEE IT Outsourcing Review 2008

The research “Central and Eastern Europe IT Outsourcing Review 2008” provides an evidence of the rapid development of IT outsourcing services market in the Central and Eastern Europe. The CEE cluster becomes the real player on the global outsourcing market. The clients are getting more interested in the “nearshoring” to the CEE region than in the offshoring to India or China.

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It’s nice to have an IT staffer in house who has intimate knowledge of your business, your network and your needs. However, few individuals are experts in all areas, and those who have the requisite skills don’t come cheap.

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EXPERT VIEW

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EXPERT VIEW

The market for IT outsourcing service providers in the CEE region is growing at a fast rate, one that is ahead of average rates worldwide. The main factor of growth is that Eastern European companies offer the valuable model of outsourcing services – “nearsourcing”.

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COUNTRY OVERVIEW: IT Outsourcing Market Value in the CEE Countries in 2008

Market value is the main indicator of the development of IT outsourcing services providers market in the country. The scope of final IT products in 2008 served as the basis for the calculation of market volume. Other sources of estimations were the total number of professionals and the average rates on the national market. The use of open analytical reviews, data received from the national IT associations and expert opinions allowed adding more precision to this index. Each country’s IT outsourcing market volume is indicated in USD Mln.

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Outsourcing contracts can be complex affairs, but a good outsourcing contract will examine service level agreements, penalties and rewards, timeframes and measurements, regular reviews, and exit strategies.

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The most important factor we take a look at when outsourcing IT is money. We want to pay less and get the same job done or even a better job done for the same amount.

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The truth is that the cost of outsourcing is in most cases a lot lower than hiring locally. Statistics have shown that in average you can cut around 15% of costs through outsourcing.

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COUNTRY OVERVIEW: IT Outsourcing Number of Companies in the CEE Countries in 2008

Number of companies is one of the key indicators of the country IT outsourcing market development. When calculating the number of IT companies, we counted IT and software development companies providing outsourcing services who had a staff of more than 10 employees. A relatively low threshold was deliberately taken in order to provide a complete market snapshot for each country.

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Proper standards of IT governance can help to align technology with complex business processes, and open the door to more effective outsourcing, by Gyorgy Lengyel, managing director of AAM Technologies.

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COUNTRY OVERVIEW: IT Outsourcing Number of Professionals in the CEE Countries in 2008

When calculating the number of professionals, we considered only those IT specialists involved in IT outsourcing services, not administrative personnel. Other data sources used in estimations were general information about each country such as population, as well as review respondents’ feedback on the number of companies and the average number of employees in each of them.

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