Software Businesses over the world earn huge profits from the Nearshore outsourcing! If you are unsure about nearshore software development Eastern Europe and southern Europe, this article will clear it all for you!
Reasons for adopting Nearshore Outsourcing;
– Fewer Implementation Risks.
– Use of modern financial instruments.
– Cost reduction.
– Modernizing a firm.
– Avail expertise.
– Applying modern technology.
– React more flexibly with the changing needs.
– Boost realization.
– Better cost distribution and planning.
– Resolve the talent shortage issue.
– Improvement in the efficiency and quality of service delivery.
– Standardization and Centralization of processes.
Why is Europe among the Main Hubs of IT Outsourcing?
It is convenient to choose Europe for nearshore outsourcing of IT projects. There are many reasons behind it. It includes the freedom to move the data to any non-European location, accessible data centers, and free labor laws.
The IT qualified personnel in European Countries have solid technical training. They also own a higher intellectual base with enough knowledge of science and languages. As per an annual estimate, about 30k IT specialists are produced alone in Ukraine.
Many countries in Eastern Europe share similar social-cultural levels to most nations of America and Europe. Due to the slight difference in time zone, real-time communication is possible.
One can cut down the cost of resources for any Startup due to the strong base of the experts having engineering and IT skills in Europe. Data protection comes under the laws of the EU. So the level of satisfaction could be more. Many powerful world economies prefer the southern European IT firms for their proximity to the nearshore.
Two of the most popular regions preferable for nearshore outsourcing are Eastern and Southern Europe. Now, a question might arise in your mind! Which one to choose among both?
Eastern vs. Southern Europe for Nearshore Outsourcing: A Comparison
Let us compare the performance of both the East and South regions of Europe in terms of Nearshore Outsourcing as per different factors;
1) Availability of Talent
Considering the situation in Southern Europe, most people here are fluent in German and English! One can find a large workforce from the telecom, IT networking, and computer engineering background.
Eastern Europe nations rank among the top 5 countries with having the best software developers all over the globe. So the workforce here is highly educated, and most have a higher or intermediate English level.
One can travel to Southern Europe from the US in some hours with a direct flight. So, no need to face difficulty due to different time zones. Similarly, in the case of Eastern Europe, you can reach its counties from many major US cities without a huge difference in their time zones. It takes less time to travel to Eastern Europe from any Western country.
3) Work Culture
People in southern Europe are loyal, respectful, and trustworthy in doing the partnership for business. Besides, they can communicate well with foreigners in English. So one can maintain a particular work culture with ease.
It is a fact that there is much less difference between the cultures of West and East Europe. The eastern European agencies follow international codes of conduct for business. Hence, one can build efficient and transparent cooperation with these service providers.
4) Recommended Countries
The total value of the IT market hub in both the regions south and east Europe regions are almost equal amid $12000-13000 million. If we consider south Europe, the popular nations offering IT outsourcing services are Spain, Portugal, Italy, and Greece!
If we consider the eastern part of Europe, Poland, Czech Republic, Ukraine, Slovakia, Hungary, and Bulgaria are known regions. Among these, the top three are Ukraine, Spain, and Italy in IT market value!
Eastern or Southern Europe for Nearshore Outsourcing: Which one is in high demand?
Following are some facts related to the two popular regions in Europe for Outsourcing in the IT industry;
– Among all the European nations, Ukraine has more than 80% of its people have a higher or intermediate level of English. It is way better than Spain or Portugal.
– Most of the south European nations are also European Union members. So in terms of privacy, they need to follow some regulations and strict laws to protect the client’s data. The region has also prioritized intellectual property protection in the world.
– More than 75% of IT firms in Europe prefer to outsource their projects to European countries. Around 17% of its share belongs to Ukraine!
– Southern Europe is known for its high internet access rate. Plus the plenty of talent and their English speaking fluency. The most impactful sectors of this region are healthcare and IT.
– It is noticed that in 2019 more than 40% of the Israeli IT firms chose Ukraine for their software development outsourcing needs.
– Above 65% of IT companies in the Netherlands hire software agencies from Europe for their outsourcing needs. Among them, 14% are from Ukraine.
– Business process outsourcing is generally trending in the southern region of Europe. It is due to their regular improvement in the quality of services at competitive prices. Hence, BPO is a sustainable and exemplary business strategy for many people.
– There is a higher possibility of multi-lingual people in Eastern European nations. It is to simplify the communication process to build a high-quality product.
– As per the Global Service Location Index, Two among the top three high attractive countries in Europe for BPO belongs to South Europe.
Nearshoring IT projects helps share sensitive details and interactions with the developer teams. It is possible while they are working together from distant locations.
Project implementation needs close communication or contact feedback among the team members. It helps them improve their technology and optimize their processes. Considering all factors, it is not wrong to say Startups can prefer hiring a nearshore vendor of an Eastern European country like Ukraine!
In case of any doubt, Altamira is a recommendation for you to save time in filtering the best nearshore provider in Europe! It helps worldwide IT firms in mobile & web apps and lean software development.