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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

“Central and Eastern Europe IT Outsourcing Review” is the project of the Central and Eastern European Outsourcing Association (CEEOA). The main objective of this research is formation of the complete view on the potential of CEE region – the promising cluster for nearshore IT outsourcing for the Western European countries and offshore IT Outsourcing for the US.  “CEE IT Outsourcing Review” is one of the few public researches which covers the situation on IT outsourcing market in the Central and Eastern European countries and is a good information source for those who are willing to find IT outsourcing services providers in the CEE region.

As a professional body, CEPIS is actively involved in promoting Professionalism in IT practice amongst its Members. This occurs through regular European-wide events and specific publications including UPGRADE , the computer science journal for informatics professionals CEPIS is committed to supporting the development of Education and Research into Informatics in the academic field and the promotion of Professional Skills certifications, including EUCIP. These three focus areas of Professionalism, Education & Research, and Skills form the core activity of CEPIS in achieving its mission of improving and promoting high standards amongst Informatics Professionals.

Julian Seymour, General Manager of CEPIS, strongly believes that the review is very useful, and timely  in light of global recession. As many companies are looking for more innovative cost effective solutions ,Central and Eastern Europe has the potential to become one of the most important outsourcing hubs in the world. CEPIS recognises the challenges and the opportunities in and the contribution to the growth of highly skilled professionals and the development of IT industry on the broader European level. which exists within the region.

The research is undertaken by the CEEOA members – Ukrainian HI-TECH Initiative, Baltic Outsourcing Association, Hungarian Service Industry and Outsourcing Association, Employers’ Association of the Software and Services Industry – ANIS (Romania), Bulgarian Web Association, and Association of IT and Business Process Services Companies – ASPIRE (Poland), and sponsored by Ukrainian IT outsourcing company NET Technology Center WEB100.

The national IT associations, as well as the largest IT companies and experts contributed to the research and provided their views on the IT outsourcing market development in 2008 and new tendencies for 2009.

The Central and Eastern Europe IT Outsourcing Review is freely distributed. The official version of the research will be published on the information portal of the CEEOA – ITONews.eu (http://www.itonews.eu)

About CEPIS

The Council of European Professional Informatics Societies (CEPIS) (www.cepis.org) is a non-profit organisation seeking to improve and promote a high standard among informatics professionals in recognition of the impact that informatics has on employment, business and society. CEPIS is comprised of 36 national informatics associations representing over 300,000 informatics professionals from 33 countries across greater Europe. It provides a coordinated voice on the views of European informatics professionals on major issues to European Institutions.  CEPIS is also responsible for the highly successful ECDL and EUCIP Programmes and produces a range of research and publications in the area of skills.

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, 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 Association of IT & Business Process Services Companies in Poland (ASPIRE). 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.