Outsourcing information technology projects to Eastern Europe offers important cost and security benefits over today’s global outsourcing leaders, according to STR Inc. Political unrest and rising prices have caused many companies that are outsourcing projects to Southern Asian countries such as India, Pakistan and Sri Lanka to look for an alternate supplier. Eastern European countries such as Romania and Russia have a highly skilled information technology workforce, a more stable political climate, a superior data communications infrastructure and prices that are significantly lower than Southern Asia. Ovidiu Farca, president of STR, said that the company can outsource virtually any software development project at prices that are lower than what it would cost to complete in India. “

“The outsourcing business is growing at 15 percent a year and total outsourcing expenditures should reach $340 billion this year,” Farca said. “This trend results from the ability of outsourcing service providers to deliver faster, higher quality solutions at a lower cost. In the mean time, the ongoing conflict between India and Pakistan and the continuing political unrest in Sri Lanka have forced many companies to look for an alternative or at least a second source. Eastern Europe has a highly efficient school system that produces tens of thousand of skilled programmers that are often underemployed. For example in Romania, 95 out of every 1000 people have IT skills and in Russia 65 out of 1,000 compared to only 25 out of 1,000 in India. Western companies that have worked with partners from Eastern Europe recently have been impressed by their professionalism and timeliness. And because Eastern Europe has not been hit by the outsourcing boom, prices are considerably lower than in Southern Asia.”

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