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Eastern Europe - an Attractive Outsourcing Destination - 2007-02-06
The cultural and geographical proximity are among the main privileges Eastern Europe has to offer as an outsourcing destination
Source: ComputerWeekly There are many attractions for companies wishing to cut costs and develop their software overseas. The low wage levels, comparable to India, slow wage inflation and abundant output of talent from local universities look likely to keep the region economically competitive for at least 15 years, according to management consultancy McKinsey. In addition a reliable, existing infrastructure make it a low-risk location for investment, with geographical and cultural proximity to Western Europe. Global investment bank Deutsche Bank has developed a customer relationship management system in Moscow, and has found the commute to be relatively painless. A trip to Moscow is three-and-a-half hours by plane, and when you get there the experience is of visiting a Western city. Although only 1% of the world's total outsourcing spend is currently located in Eastern Europe, the region emerged as one of the favorite locations for Western European companies to invest in between 2004 and 2006. Accordingly, McKinsey predicts that offshoring activity in Eastern Europe could triple to more than 130,000 jobs by the end of 2008. Read full story
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