The rising costs for the United Kingdom companies that provide and use Indian Offshire information Technology services could drive businesses to a cheaper locations such as Eastern Europe. The report say that Romania and other Eastern European countries are virtually ignored by the United Kingdom companies but it is predominantly the first outsourcing choice for the rest of the Western Europe. It is not the only cost of using and providing Information Technology services in Romania much cheaper than in India but the country is also home to an abundance of well educated and a highly skilled workers who have a better understanding of the Western European culture than their Asian counterparts. The companies in the United States have also recently started considering Eastern Europe as a resource for the outsourcing which is the sending of the tasks such as the data center or the payroll operations to the other companies.
The chief executive of chip maker Advanced Micro Devices stated that citing the availability of engineering talent in Hungary, Poland, the Czech Republic and Russia is in the eye on Europe. The complex math is one are that the Russia really put a lot of effort into and it is paying off. The Sunnyvale Calif-based chip maker has built a factory in Dresden, it is formerly part of the East Germany. The United Kingdom’s use of India is a largely elsewhere as skills and resources become scarcer and costs start to rise. By acquiring resources and companies in Romania more cheaply than in India and for the users to buy comparable levels of the Information Technology service at much lower cost. there is the opportunity for both for services providers to improve their competitive edge. The Romania is the area of the choice for everyone else in the Europe. From the business point of view, it is quite backward compared to the Western Europe and it is probably no better than the Indian and Asian alternatives. It is arguably closer in the culture affinity, the language and education are good enough.
The Eastern European are often well educated, it remain difficult to find a good managers in the area, people from formerly socialist nations lack entrepreneurial zeal. The midrange price for the offshore software development in Romania is about $160 per person and thats is the cost of employing a recently qualified graduate from an approved specialist university is approximately $6,500 a year. It experienced project managers that can also be recruited for between $21,500 and $32,000 a year. The PAC estimated that in 2003, the Romanian revenue from the European countries will reach $124.2 million, it is mostly from France, Germany, the United Kingdom and the Netherlands.
REFERENCE:
http://news.cnet.com/2100-1011_3-5074725.html
