Franchise Flag Maker

23 July, 2009 – Kiev – The research “Central and Eastern Europe IT Outsourcing Review 2008” provides an evidence of the rapid development of IT outsourcing services market in the Central and Eastern Europe. The CEE cluster becomes the real player on the global outsourcing market. The clients are getting more interested in the “nearshoring” to the CEE region than  in the offshoring to India or China.  The customers become more sophisticated in their business relationships. There has been a shift from simple cost savings as a motivation to valuing the experience of outsourcing services providers and efficiency of cooperation between the client and provider teams. The advantages of the CEE countries such as cultural compatibility with Europe and North America, technical and business experience are of great value for the clients.

One of the main objectives of the research conducted by the Central and Eastern European Outsourcing Association (CEEOA) with the support of Council of European Professional Informatics Societies (CEPIS) is to provide the holistic view on the potential of the CEE region as a global cluster for provision of nearshore IT outsourcing for the Western European countries and for offshore IT outsourcing for the North American market.

“CEE IT Outsourcing Review” is conducted for the second time.  The 2007 research report “Central and Eastern Europe IT Outsourcing Review 2007″ indicated that there was a great interest from the clients consuming outsourcing services and research companies.  Following positive feedback for the 2007 Report, the CEEOA decided to commission an annual review on “CEE IT Outsourcing Review”, resulting in this 2008 Report. “CEE IT Outsourcing Review 2008” was conducted during January to July 2009. The national IT and outsourcing associations, largest outsourcing companies, and independent experts were invited as respondents.  The Ukrainian software development company NET Technology Center WEB100, who provide offshore outsourcing services and deals with the development of IT solutions for B2B communications and business solutions based on Social Media approaches, sponsored the research.

The research examines key development indicators of the IT outsourcing market in the 16 countries of the Central and Eastern Europe region including market value, number of professionals, number of IT companies providing outsourcing services and market rates.

“CEE IT Outsourcing Review” includes the detailed country profiles, experts estimations on the outsourcing market development during the recession period, their opinion on new tendencies and forecasts for the market recovery, profiles of the leading outsourcing companies in the region.

Victor Maznyuk, President of Ukrainian Hi-Tech Initiative, one of the CEEOA founders, noted,“Outsourcing industry in the Central and Eastern Europe does not suffer significantly during the financial crisis. At the outset of 2009 there was insignificant number of the outsourcing companies closures.  The outsourcing industry always expected from the outsourcing players  to meet the client requirements quickly and to control the expenses. Having a great experience of the development on the competitive market of outsourcing services provision, the Eastern European companies learned how to work successfully during the recession period without  taking drastic measures and significant business changes.

As a whole, the crisis produced the effect of improvement in the industry. The number of IT specialists slightly increased, their salary and rental fee underwent insignificant drop. This allowed companies to reduce the cost of services and to be confident during the recession period. Without any doubt I can claim that outsourcing industry is ready for the increase of provided services value in view of the forthcoming economic recovery.”

The official version of the research “Central and Eastern Europe IT Outsourcing Review 2008” is available at the information portal ITONews.eu and at the CEEOA website.

About CEEOA

Central and Eastern European Outsourcing Association (CEEOA) (www.ceeoa.org) was founded in 2008.  The members of the association are the leading national IT and Outsourcing associations from the Central and Eastern Europe, among them Baltic Outsourcing Association (BOA), Ukrainian HI-TECH Initiative, Hungarian Service Industry and Outsourcing Association (HOA), Employers’ Association of the Software and Services Industry (ANIS) from Romania, Bulgarian Web Association (BWA) and ASPIRE – Association of IT & Business Process Services Companies (Poland). One of the main objectives of CEEOA is to promote the Central and Eastern European Region as competitive alternative to other Global offshoring destinations, and to increase services delivery quality and volume to the recognized standards.

Contact information:

Inna Sergiychuk

Central and Eastern European Outsourcing Association (CEEOA)

Phone: +38 044 458 1753

st – 21 October, 2008 – Outsourcing Associated bodies and Branch Associations from the Baltics, Ukraine, Hungary, Bulgaria and Romania consolidate their resources and established Central and Eastern European Outsourcing Association (CEEOA) with the purpose to promote CEE region as competitive alternative to other Global offshoring destinations, and to increase services delivery quality and volumes under recognized standards.

Central and East European (CEE) countries are very small players in the Global market for IT and business process outsourcing. Lack of international trade practice and modern business management competencies by CEE vendors are among the factors keeping CEE region from realizing considerable opportunities created by globalization.

Therefore CEEOA strives to attract considerable attention to the region as an offshore outsourcing location, along with thousands of qualified graduates entering the marketplace each year. Service providers in these countries offer geographic proximity combined with cultural and language affinities, constantly improved business viabilities and services delivery capabilities, and openness to collaborate. The macro economical and political environment is stable, infrastructure is well developed.

Baltic Outsourcing Association (BOA), Ukrainian HI-TECH Initiative, Hungarian Outsourcing Association (HOA), Employers’ Association of the Software and Services Industry (ANIS) from Romania and Bulgarian Web Association (BWA) joined their forces with the purpose to best avail opportunities given by globalization and promote CEE region‘s competitive features in order to capture large share of the global market for IT and business process outsourcing (offshoring) services. CEEOA focus is on all service areas, not only IT, BPO and high tech industries, as its important to consider outsourcing as a non industry specific phenomenon. CEEOA is an open platform for all the organizations and businness associations in the region who are willing to join it or to contrubute to the accomplishment of its goals.

CEEOA operates as an independent professional advisory body on networking partnership basis, – its critical Objective is to create, develop and communicate positive image and main value proposition (-s) of CEE region as competitive alternative to other global IT, business processes and manufacturing outsourcing destinations.

The Association also strives to develop the internal market, where outsourcing should be promoted as a useful management tool for companies ranging from different industries in CEE region. Other Objectives are: to promote transparent and open business environment, CEE regional and international networking that builds operational value by promising and delivering high quality products and services at fair prices over the time, and by building strong economic, technical and social ties among the members of CEEOA and free competition; to improve business viabilities and services delivery capabilities of CEE Service providers; to promote creation and introduction of science-intensive technologies, the development of information society; to encourage each CEE country to increase the level of collaboration between government, companies, and universities to ensure that students gain the skills that companies require.

CEEOA intends to achieve these Objectives with the use of different marketing communication tools as PR, ATL and BTL activities, and the establishment of standardized certifications of Vendors‘ qualification. Besides initiating permanent researches to follow the main indicators of outsourcing, political, economic, and investment market features, Association wishes to maintain value added relationship network with associated outsourcing industry bodies, chambers of trade and industry and professional associations globally, while creating a single information flow promoting and sharing the best practices, expert information and research findings, benefits and innovative solutions in the outsourcing industry from CEE.

Central and Eastern European Outsourcing Association has already accomplished the project ITONews.eu (http://itonews.eu) – information platform, the main aim of which is to create the single information flow from CEE countries and to serve as a meeting place for outsourcing services providers and buyers. Also a brief research “Central and Eastern Europe IT Outsourcing Review ‘2007” has been conducted under the aegis of CEEOA, where the information about IT Outsourcing markets of CEE countries can be found.

About CEEOA

Central and Eastern European Outsourcing Association (CEEOA) (http://ceeoa.org) was founded in 2008. Baltic Outsourcing Association (BOA), Ukrainian HI-TECH Initiative, Hungarian Outsourcing Association (HOA), Employers’ Association of the Software and Services Industry (ANIS) from Romania and Bulgarian Web Association (BWA) became the founders of the association. One of the main objectives of CEEOA is to promote the Central and Eastern European Region as competitive alternative to other Global offshoring destinations, and to increase services delivery quality and volume under recognized standards.

Contacts:

Iryna Dubenyuk

Email: irad@hi-tech.org.ua

Phone: +38 044 458 1753