Outsourcing Mentor, Blog
Contact Details
Email : NewThinking@outsourcingmentor.com
| How far East do you have to go? |
|
The recent New York Times article “Eastern Europe Becomes a Center for Outsourcing” talks about the increase in outsourcing close to home. This displays the inevitable spread of outsourcing to all low cost, educated regions of the world. It is not necessary to go as Far East as Asia to find vendors willing to supply outsource services.
From the article the wage differential in the Czech Republic is about 3.5 – 1 which means for a single worker in Western Europe it is possible to have 3.5 workers in Prague. This may not be quite in the league as the 8 or 9 -1 in Asia but the benefits of having your vendors within a few time zones of you and immediately having a closer cultural fit may outweigh the cost benefits.
The expansion into Eastern Europe is not even close to the scale that is seen in India. There the MNCs swoop in a suck up thousands of workers. The local employment pool wants to work for the likes of CA or Microsoft. These organisations are not yet dominant in Eastern Europe. This means that, for SMEs there are vendors eager to talk. Growth of 30% a year in outsourcing will be fuelled in part by MNCs but a quick, well informed SME can find a multitude of vendors to outsource with. Link to the Article is here
|