IT-BPO Outsourcing in Europe: Key factors and 4 emerging countries

November 8, 2011: It is certain that European countries cannot compete with offshore locations such as India and Philippines in terms of cost advantages. But as far as high end technology and innovations are concerned, Europe has become a favorable outsourcing location.

There are many significant factors that make Europe a favorite destination for outsourcing. They are:

Large Talent Pool

Europe is rich with talent pool, expertise in the area of engineering and the exceptional quality of education. With a strong talent pool, Europe has gained confidence among companies which look for expert service in the area of technology.

Skilled in Multiple Languages

The capabilities in multiple languages have given Europe a distinctive advantage over other locations. They offer services in six to seven languages, which many other locations are not able to achieve. This has in turn helped in the growth of BPO sector in Europe.

The Market Overview from the Forrester report indicates that the infrastructure outsourcing market is dominated by European outsourcing service providers. They offer dedicated cloud and hybrid solutions as there are security issues.

Europe is gaining a dominant share in the Information technology market worldwide. According to the report, Ukraine is the low cost near shore location. The IT Sourcing Europe Survey has found that countries such as Ukraine, Russia, Belarus, Poland, Romania, and Hungary have become the favorite near shore location for IT development.

There is marked growth in the BPO industry, both in the voice and non voice operations. The multiple languages capability has led to rise in call center establishments. Finance and Accounting services has also showed marked improvements. Countries such as Hungary, Slovenia, and Romania are the major centers of voice operations and Poland is the major center for non voice operations.

Emerging 4 European Countries in Outsourcing

1. Ukraine

Ukraine has become of the favorite location for near shore software development as a result of low salaries, good quality education, and research and development. The level of information technology resources is high in Ukraine and also offer 40 to 60 per cent cost savings to companies.

2. Poland

Being a mature BPO market, Poland offers Human resource solutions, analytics, Financial and accounting services etc.

3. Hungary

The maturity in BPO market has helped Hungary to become a favorite destination for near shoring. Hungary offers Human resources solutions and software development and testing services.

4. Russia

With expertise in engineering design and R&D, Russia leads the ITO market. Russia is listed in the top 30 outsourcing location by Gartner.

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