As I mentioned in one of my previous posts, the IT outsourcing industry is slowly expanding despite the downturn. Outsourcers continuously seem to be aware of the advantages of outsourcing. But what location do you choose once you have decided to move your IT development to a service provider? And how important is the location, or should you focus more on the service provider?
What should be leading the location or provider?
According to Tholons’ study Emerging Global Outsourcing Cities, October 2009, most respondents treat the choice of the provider as the most important factor in outsourcing. Analysts like Gartner claim that the location probably should be the most important decision factor. A good provider in an expensive country could in the long run not occur to be the best choice. What is the best location for your business depends on many factors like culture, time zone, language skills. Below you will find the breakdown of the regions of choice based on Tholons’ study.
Polish predominance in the region
Due to the communistic period many people still don’t have the right picture of Central Europe. They consider these countries to be poor, industrial and dirty. I can guarantee that you might not be aware of the big changes that are going on in Central and Eastern Europe.
Nowadays, Poland for example is known as an instantly developing, high skilled destination for IT outsourcing. Especially among Western European and Scandinavian potential clients Poland is a favorite outsourcing destination. Polish ITO and BPO providers are capable of serving the wide variety of services that are in huge demand.
Poland is among the top 10 preferred Outsourcing Nations according to Tholons’ study Emerging Global Outsourcing Cities, October 2009. This reveals Polish potential as one of the strongest services suppliers in the region, which is possible mainly thanks to highly-qualified IT community and world-class education system. This leaves other competitors far behind.
The Polish city Kraków ranks among the Top 5 Offshore Cities and Warsaw has a strong 28th place. According to the ranking Poland is constantly growing in its IT outsourcing potential. You can download a copy of the Tholons’ study here [PDF].
|
City |
Country |
Region |
Rank 2007 |
Rank 2008 |
|
|
1 |
Cebu City | Philippines | Southeast Asia |
4 |
1 |
|
2 |
Shanghai | China | East Asia |
8 |
2 |
|
3 |
Beijing | China | East Asia |
10 |
3 |
|
4 |
Kraków | Poland | Eastern Europe |
16 |
5 |
|
28 |
Warsaw | Poland | Eastern Europe |
26 |
28 |
We are curious about your experiences with outsourcing to another country. Please feel invited to share your opinion below.
Poland is beginning to be into outsourcing industry eh. From 16 to 5 its a high leap and its very interesting.
I wouldn't say the outsourcing market in Poland is starting. Already for some years Poland is a very good nearshoring destination for European countries. Recent research shows that more and more people start realizing this.
Poland is more than just another BPO location. In our organization we not only have a multi-lingual workforce, but a multi-national one which includes Portuguese, Spanish, Russian, Italian, Brazilian, British, Polish and Indian nationals. This gives it an advantage which most Indian operations do not have. While most companies currently leverage this facet largely to source language skills, it has the potential to be extended to other areas in the future.
Regards,
Charlie
Based on the website url you provided (for me the menu items are all the same) I conclude your are Philippine based. What kind of activities do you have in Poland?
Furthermore I agree Poland is more than just a BPO location. It's a rapidly developing economy which offers a broad range of outsourcing possibilities.
IT outsourcing to Belarus
Well-educated IT engineers in Belarus are capable of executing your software development in accordance with all technology standards. Geographical and cultural proximity of Belarus together with its mature high-tech industry allows effective communication and project management, and as a result minimizes risks. If you are looking for a destination with reasonable costs for your outsourcing, Belarus is for you.
Delelete
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Peter Horsten
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wow…..
interesting information.
Thanks
DL
wow,
interesting post. never thought that Poland would have climbed to that rank just in one year
Cheers,
DL
It didn't happen just in one year of course. For a longer time the market in Poland has been developing. It only took a little while before (mainly) Europe started watching East.
Great, I thought outsourcing IT just a matter of money, reliablitiy, flexibility etc. This could be a brand new concept for me , thanks
Hi Yudo, thanks for your reply. For sure it's a more complex matter. Unfortunately, outsourcing is often basically treated as a cost saving option. Be aware, that especially in such cases the cost saving expectations are very often not met. Outsourcing is a strategic decision.