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IT outsourcers are demanding more than cheap labor from their offshore partners. Learn how Central and Eastern Europe have gained a stronghold in this evolving industry.

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The end-user, the economy, security requirements and the environment will be among the leading factors influencing enterprise clients’ technology outsourcing decisions in 2009.

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Over the last several months, the macroeconomic forecasts for Central and Eastern Europe have been radically revised.

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Outsourcing today is synonymous with service providers delivering services from multiple locations worldwide. The increased adoption of offshoring has resulted in outsourcing clients’ businesses being extended into service provider organizations in various offshore locations.

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The last six months of 2008 was one of the weakest half-years on record in terms of the value of outsourcing contracts awarded in the EMEA region as businesses paused for thought.

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European IT outsourcing saw a record year in 2008, with contracts totalling nearly 72 billion euros, according to the latest figures.

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There has been a “sea change in attitude” among businesses in this financial crisis, as bosses see IT support as a way of cutting expenditure rather than just an added cost, according to an expert.

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Implementing globalisation no longer creates automatic competitive cost advantage. To gain competitive advantage, companies must strategically engineer the integration and synergy from service providers.

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It appears the small business owners are extremely loyal when it comes to IT outsourcing, as a recent study revealed that six per cent of bosses are more likely to get divorced that move to a new IT support provider.

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Globalization is suffering from economic, financial and political challenges. IT organizations can improve results and mitigate risks by revamping offshore strategies.

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