Market interest rates towards the Central and Eastern Europe have been raised long before the new EU Member States in 2004 and 2007. In the early 1990s the region was a prosperous niche investment in Central European countries such as Poland, Hungary and the Czech Republic will lead the transition to a market economy. Then, from the mid-1990s, the Central European region has become a clear trend in software development, established the competition in India and China Dealers.
The first wave of nearshoring is commonly associated with the Central European and Baltic countries became EU members in 2004, particularly in Hungary, Slovakia, Poland and the Czech Republic. While competition in the Far East continues to dominate the large-scale project in market share came to the East Center, IT vendors are increasingly "SMEs and the SME scheme, which provides for the outsourcing of the average distance and small projects. In short, the area has been arrested to the global IT players such as Capgemini and EPAM Systems, which is expanding the outsourcing of projects. According to the latest figures, Deutsche Bank Research, the vast majority of Germans, Swiss and Austria, yet sellers are outsourcing their activities for Poland, the Czech Republic, Slovakia and Hungary, with companies in India and Eastern Europe in the first ranking list of outsourcing.
As the EU's enlargement and its impact on the outsourcing market of Central Europe is twofold. On the other hand creates a bigger internal market for IT services is growing, and external demand and supply. However, in the long term, and the means for growth in labor costs, which increases development costs. Thus, EU membership, to minimize the competitive price advantage of country access to the past. In this regard, Natasha Starkell, CEO of the target in Europe, it is noted that wage increases will push east of the transfer.
The second wave of nearshoring, new actors, such as outsourcing to Romania and to a lesser extent, Bulgaria has begun to fall, and its accession to the European Union in 2007. At the same time, the East European region outsourcing is gaining momentum, especially in the last five years. In particular, Hi-Tech Initiative in Ukraine indicate that in 2006 the Ukrainian IT export of 280 million dollars, will decrease by 60% growth year on year.
Recently, several high technology companies, including IBM, Cisco and Motorola have entered the market nationwide. The country has significant additional expertise and competitive pricing, even though part of the increase of salaries of personnel in software development and a corresponding increase in hourly rate. With rates of 15-22 euros per hour, the country has fluctuated between half-price segment, which offers more attractive prices of competitors from other CIS countries such as Russia and Belarus.
Most of the developers in Ukraine is aimed at SME customers, which offer Our value proposition consists of a rational and consistent quality. In the last five years, become a widespread trend among IT entrepreneurs of Ukraine to improve the focus on improving service quality (ISO and CMM certifications) and to expand knowledge of developers through professional certification and training.
Another point in regard to marketing tools for IT suppliers from Ukraine. Over the years, work in the IT sector has shifted from 'sensitive' end of the right marketing strategies to get more support from governments. Initiatives to benefit the annual Ukrainian Outsourcing Forum, presented in the Ukraine at CeBIT in Hanover, as well as Silicon Valley, will open the conference doors. In 2007, the army of central and eastern Ukrainian Outsourcing Summit, which emphasizes the role of one of the leaders of Ukraine outsourcing CEE region. Other favorable market developments include the establishment of professional organizations and associations in the IT sector. The environmental impact of the most popular Ukrainian Hi-Tech Initiative, Federation and Ukraine, the Ukrainian Association of Software Developers.
Relying on Imran Khan and his publication, "Ukraine: a promising Outsourcing Hub", the Government of Ukraine to contribute to the IT industry through over 20 of Ukraine's recent laws that have to do with it, and the area of intellectual property rights issues. In view of the above mentioned, in 2006, Ukraine was involved in a list of five most attractive outsourcing destinations in some Western European countries.
Another possible direction can be found in the extent of decentralization of the external field: the "outsourcing of Ukraine: 2006 results and 2007 expectations," analysis of the dynamic development of regional businesses (especially SMEs) to compete on an equal footing for the capital, Kiev. Most scientific potential of Lvov (Lemberg), Kharkov and Odessa regional airlines equipped with a highly educated workforce, and a highly developed infrastructure. Abstract
Finally, the recent EU enlargement has intensified the competition in Central Europe and the Far Eastern IT companies with European countries, the principal competitors in the global competition of outsourcing. In addition, some CIS countries such as Ukraine are rapidly moving to provide development services on the beach near the core software offerings. No doubt the EU's enlargement has contributed to improving the existing nearshoring trend, Western European companies the choice of software development partners in neighboring countries, the cost, however, over the medium term, this choice would be the EU's "next" to the neighbors.
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