Eastern Europe Outsourcing Increases, Says Report

In the News:

ComputerWeekly – by Nick Booth

Multi-sourcing of IT services is on the increase with Eastern Europe emerging as one of the most popular destinations for outsourcing managers, according to a report by Aberdeen Group.

The study, "Who Outsourced the Outsourcers?", was based on in-depth analysis of the IT outsourcing strategies, plans and effectiveness of more than 200 enterprises in several industries across the world.

According to the report, Eastern Europe is no longer seen as a cheap source of services, but in many cases is being regarded as the source of "best in class" service providers. The bar has been raised for outsourcing companies, the report noted, in reaction to increasing press to keep strategic work in the hands of internal IT staff.

The other important trend, the rise of multi sourcing, has also helped to drive competition and raise standards, concluded Ralph Rodriguez, senior vice president and research director, Technology Markets, Aberdeen.

"Multi-sourcing means customers who can deal with complex outsourcing schemes can diversify their application outsourcing," explained Rodriguez, "this removes the geopolitical risks of having one offshore company, in only one country."