From the Top

Eastern Europe’s Advantage in IT Management

By now, you surely have experienced working with technology resources and call centers in India. When companies think about outsourcing, India is usually the first location that comes to mind.

But savvy business leaders should think a bit further north. Countries in Eastern Europe are quickly becoming favorites for offshore development efforts.

According to Raj Ponnuraj, Founder and CEO of SRI Infotech, India, while long preferred for outsourcing projects, is facing stiff competition from other regions in Europe.

Why? In a word: turnover.

In India, demand for engineers, technologists and programmers is quite high. The in-country presence of many US companies such as Google, Microsoft and Cisco, dominates a good deal of the local labor market, and as a result, increases demand for those potential employees that remain.

High demand subsequently escalates salaries, and incentivizes job hopping among talent. As a result, employees who start projects often don’t complete them.

Rapid and regular turnover is a real cost differentiator on outsourced projects. Loss of project and institutional knowledge can slow progress and increase costs.

In contrast, countries in Eastern Europe, including Poland, Russia and Moldova have a highly educated developer class that is currently underutilized. Available developers tend to be more experienced, and often hold advanced degrees in engineering or computer science.

Furthermore, because the job market is less volatile, resources are willing to commit to longer term projects, even those that require deeper dives into newer technologies. Companies investing in Eastern Europe – including SRI Infotech – are able to capitalize on a highly skilled employee class for more predictable periods of time.

Predictability supports profitability.

The advent of the Internet has changed the face of global commerce in ways unanticipated 20 years ago. Today’s businesses can capitalize on opportunities around the world with the click of a button. By investing in a truly global labor market, companies can further maximize their returns financially, operationally and technologically.

Contact us today to learn how SRI Infotech utilize it’s global outreach to help you improve performance on your next technology project.