The Boon And Rise Of It Outsourcing In Europe

By Author: Robert Lee
Total Articles: 5
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With the epoch-making advancements in the field of technology and Internet, there has been a numerous transformation in almost every possible realm. Today, the mode of communication has become faster and cheaper and much more advanced at the global scale and this undoubtedly, is the handiwork of technology. Even day, the globe is blessed with a series of technological advancements and newer development. With the passage of time, the boon of technology, to be precise, Information Technology, has overshadowed the traditional practices and replaced them with newer trends that were once considered 'bohemian' or rather were beyond human imagination. As communication via World Wide Web and mass information has become a matter of ease, every nook and corner of the world has become well connected like never before. Today, Information Technology works hand in hand as per the changing needs of global economy. And to be at par with these changes, IT firms have restored their faith in the concept of Outsourcing. Last decade has witnessed Outsourcing growing in a breakneck pace, allowing the global business processes to become more precise ...
... and secure. High-tech outsourcing to foreign destinations such as Eastern Europe and United States has been growing rapidly. High-tech employees such as engineers, web designers and programmers are in high demand in the U.S. and Western Europe. According to the newest Industry Report from the Central and Eastern European Outsourcing Association, IT outsourcing Europe has climbed up to 3.7 billion Euros annually.
Literally speaking, the domain of Outsourcing is vast. Various types of IT Services can be outsourced. It can be operational, technological, financial and more. Operational Outsourcing seeks to improve service quality, develop and maintain stronger systems and in the process, reduce the efforts for real business. The technological benefits of Outsourcing include being at par with changing technology, improving the quality of IT services and increase the IT efficiencies. Financial Outsourcing tends to bring IT costs in control.
IT outsourcing Europe is a huge business today. Keen to adopt the cost-cutting measures, Western European companies have been assigning tech projects eastward. For instance, Deutsche Bank has some of its software developed in Ukraine, while Siemens has a research and development center in Romania. According to the report, Europe Outsourcing has yielded superb results and hence they are increasing them in numbers. Most of the European companies tend to opt for outsourcing destinations closer to home and there are certain reasons behind it. The reasons are as follows:
Similar Culture - The European Companies find it beneficial in having the people to serve their customers who are familiar with their culture, i.e. European culture. Being in the same time zone adds to the benefit. Similar Language: Perhaps, language is the biggest consideration herein. Linguistics varies from region to region in Europe and English is not the only language the Europeans speak. And hence, for a better mode of communication, the trend of Europe outsourcing is ‘nearshore'.
The trend of IT outsourcing Europe can be classified under three heads:

Project Based outsourcing: The most common type of outsourcing followed in Europe. Herein, a vendor company is hired to run or assist in completing a specific, (usually long-term) project. When the project and all follow-ups are concluded, the hiring company gets over with the contract with the nearshore outsourcing company.

Dedicated Development Center (DDC): It is the most growing strategy of that Europe outsourcing companies follow. Inexpensive in terms of cost, this Outsourcing strategy works well in a long-term relationship approach. In this, full-time developers work exclusively on client projects for a prolonged period of time. Technically these people work for the vendor company, but it is like having a virtual extension of the client office in the nearshore country.

Captive operations: In this type of outsourcing, the company sets up its own office in the nearshore location, especially the eastern countries in Europe. There they hire native workers, but the management team is from their own country. Although a risky strategy in terms of investment capital that is required, as well as operational efficiency and organizational issues, this strategy is apt for large multinational companies.
In IT outsourcing Europe has witnessed tremendous financial benefits. Outsourcing has not only controlled the expenses related to the various IT processes but have also guaranteed completion of the project within the stipulated deadline. Adhering to the corporate demands of the client to issue the deliverables within fastest possible time, many European firms have been successful in addressing the immediate requirements, and provide the most suitable solutions to their clients.

IT outsourcing has definitely become more and more common in the global market. And with the IT outsourcing Europe has got a havoc feedback, whereby, remote employment has emerged to be the most effective way to save on the office space and cost and at the same time, helps the firms to maintain a steady working routine. Companies that tread on the road of hiring high-tech professionals in Ukraine, Russia and other east European countries are strengthening their competitiveness every day. Outsourcing of work has seen an increased growth of European economy and is sure to bring even more good results for European nations.