1 August 2018

Explore New Possibilities

European Consulting Group "Business & Politics" starts project “Central and Eastern European nearshoring: potential, possibilities and risks”.

Cooperation based on the nearshoring model means outsourcing activities carried out between business partners who share a relatively small geographic, cultural, legal and political distance. Experts of ECG "Business & Politics" has been dealing with individual orders for the last 5 years. IT company from the EU, which considerer outsourcing of some business processes, constantly are looking for new dynamic places in the Eastern Europe.

Our clients are interested in a wide range of aspects concerning Central and Eastern European nearshoring in particular economic, fiscal, cultural, social, linguistic, political factors etc. Some of questions need complex interdisciplinary approach.

Best practice and an agile project approach have allowed us to start comprehensive project “Central and Eastern European Nearshoring: Potential, Possibilities and Risks”.

 One of the main assumptions is that IT companies can obtain more benefits by operation in new dynamic places for development of IT outsourcing (which are not very popular now) than in Actual top outsourcing countries. The last ones are very attractive, but often their outsourcing capacity is near to its maximum level. They do not have enough free capacity to work with additional orders immediately. That’s why we need to focus on discovering new destinations with comparatively low labor costs, enough surplus of highly qualified IT specialists and state preferential conditions for IT industry like tax incentives etc.

 We found out that Poland (as member of the EU) and Ukraine (as country which participates in free trade area with the EU) potentially could be the best places for this purpose.

We have visited 8 cities in Poland and Ukraine, which succeeded in outsourcing or creating a good base for its development in the future. We can give you the precise answer for the most difficult answers:

  1. Why is Poland one the most attractive place for highly qualified specialists in IT, which absorb a lot of specialists from the whole Central and Eastern Europe?
  2. Why did Ukraine become one the of the most dynamic countries in terms of development of IT industry in Europe in the conditions of political instability, huge infrastructural problems, high level of corruption etc.?
  3. Why do the majority of the IT highly qualified specialists prefer to stay in Ukraine despite of huge problems of that country?
  4. To what extent potential of Polish and Ukrainian markets for IT outsourcing is used at that moment?
  5. How do political changes influence on conditions for IT industry in both countries?

Final report “Central and Eastern European Nearshoring: Potential, Possibilities and Risks” will be available in the 3rd QTR 2019. Current findings and the most important conclusions will be published on our website.

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