Southeastern Europe pitches for outsourcing
Summary
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As services globalization evolves, companies are looking at developing countries and are seeking relevant, up-to-date data in order to evaluate the state of readiness of services globalization locations and suppliers. Central Europe has been the primary beneficiary of sourcing deals in the European region, with Poland, the Czech Republic and Hungary leveraging their skilled workforce and cost competitive advantages to garner business from the United Kingdom and the European Union. This has prompted the SEE countries to hone their offering in order to more fully participate in the services globalization arena.
neoIT's latest white paper titled, "Offshore Readiness of SEE Countries", the latest in its monthly series, evaluates the four SEE countries' abilities to attract and successfully implement information technology outsourcing (ITO) and business process outsourcing (BPO) work. The study examines each country's regulations, business environment, infrastructure and resources.
neoIT created an "Offshore Readiness Index" for the four SEE countries. The resulting index provides useful assessments of each country's strengths, weaknesses and general state of readiness for global sourcing. Of the four countries, Slovenia appears to be the most offshore ready, given its excellent ICT (Information & Communications Technology) infrastructure and a supportive business environment; however the country's small labor pool and high wage rates could prove to be a hindrance. Romania's strength is its skilled, cost competitive labor pool and the relatively low cost of setting up a business. Bulgaria has the lowest wage rates of the four countries and a fairly large labor pool, but has low supplier maturity. Croatia was ranked the least offshore ready of the four, with a small labor pool, relatively high wage rates and low level of supplier maturity.
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