5 Outsourcing Opportunities in Eastern Europe that Will Costs You Less Than You Thought
- Feb 27, 2018
Eastern Europe, a region that quickly becomes the outsourcing powerhouse preferred by the companies that are looking not only for a low cost of the labour but also for proximity and expertise. The collaborative technologies have turned countries such as Bulgaria, Romania, and Poland into a progressive generator of experienced IT professionals that are changing the image of the region.
In the past few years, cost-effectiveness has proved to be the more reasonable solution over the low-cost services preferred in the past. Today, Bulgaria and Poland are replacing India and China in the IT outsourcing industry as what we're witnessing is not only a change in the economics but also a change in the perspective of companies looking for outsourcing opportunities.
1. IT Outsourcing
The large talent pool of IT professionals in Eastern Europe makes it everything a company would look for in an outsourcing destination. Offering a large variety in the motivated labour force with a strong education system, Bulgaria has quickly mastered the art of engineering to perfection.
As an increasingly attractive destination for companies looking for outsourcing opportunities, Bulgaria ranks among the top software outsourcing destinations, as the latest studies show:
- Bulgarian developers rank 12th in the world for proficiency.
- The country is ranked 2nd among the most attractive European countries for outsourcing. Poland ranks 1st.
- Poland, Bulgaria, Romania, and Turkey are on the leading positions in most of the outsourcing studies in the past couple of years.
- Bulgaria is ranked in the top 20 countries in the world with fastest internet connection turning it into a fruitful environment for software development.
As IT Outsourcing is a practice that needs an in-depth analysis and reflection beforehand, it's important to become familiar with the ever-changing outsourcing landscape before making the decision. Eastern European Countries' contribution to that landscape, however, is undoubtful and keeps growing with every year passing. And IT outsourcing companies grow and bloom faster than ever.
2. HR Outsourcing
The Human Resource Department is arguably the most underrated link in the chain that keeps all of the pieces in a company together. Realizing its essential necessity contributes to the effectiveness of it. Sometimes, however, that's not enough. Companies' HR personnel often just doesn't have the much-needed time and resources to deal with every aspect of its responsibilities. That's what makes HR outsourcing companies a gift from heaven in the hardest of times.
I bet it won't surprise you that here Eastern European countries are also a leading factor for companies' outsourcing leads. To demonstrate that let's take a look at a few advantages of the region compared to others:
- cultural affinity - The strategic location of this region turns it into a perfect solution when it comes to communication. As opposed to India and China, countries such as Romania and Bulgaria have much better understanding of the contemporary values, business attitude, ethics, and communicative models.
- proximity - Again thanks to its geographical coordinates, the region is an easier solution for HR outsourcing needs of Western Europe.
- language skills - As a matter of fact, 85% of Bulgarian students study English and another European language making the larger part of the population multilingual.
3. Payroll Outsourcing
Payroll outsourcing just like the HR Outsourcing can hide some risks. That's why it's important to take your time into research and environmental analysis when making the choice of a payroll outsourcing company.
Outsourcing payroll can actually turn out to be one of the best things a company does when in the right hands. Some of the main benefits of doing so in Eastern Europe are:
- cost-effectiveness - As we've already said, the region is a leader for a cost-effective work. Payroll outsourcing can largely reduce a business' direct processing costs by providing an in-depth local expertise.
- productivity - When payroll processing takes place inside a certain business it can turn out to be a time-consuming process. That's why delegating it to a trust-worthy outsourcing company will save its time and efforts.
4. Offshore Outsourcing
Offshore Outsourcing might sound as an abstract concept but let's try to coin a definition for this practice. Offshore outsourcing is essentially the practice of hiring an external company to perform a certain service in a country other than the one where the product is developed.
The benefits of any type of business process outsourcing (BPO) are mainly related to the quality/price ratio and value for money. While the reasons for offshore outsourcing may vary from a shortage of personnel to a shortage of time, the reasons for offshore outsourcing in Eastern Europe remain sufficient.
As we've said the region offers a wide range of experienced professionals who bring together everything a company might need in its outsourcing practices.
5. Accounting Outsourcing
Finance and Accounting Outsourcing becomes more popular with every passing year. Many small businesses have troubles hiring experienced employees with the right skills for their financial statements, bank account operations, and financial data analysis. When a company needs a satisfactory bookkeeping and yet can't afford to do it itself, finding a secure option becomes a priority.
Having experienced and reliable experts alongside company's accounting operations is essential. That's one of the main benefits of accounting outsourcing in general. Another major reason for hiring an external company lies in the flexibility it provides. When outsourcing a company accounting processes, that company can use those services only when needed, thus reducing the cost and time factors.
The main advantage of outsourcing your business in Eastern Europe is the combination of cultural-affinity and cost-effectiveness that no other region provides. Bulgarian employees have quickly become the preferred experts for Western European companies as the business environment in the country has turned them into tech-savvy professionals understanding the contemporary businesses better than anyone else. One of the fastest developing cities in the country, Burgas, has become the biggest residence of such professionals in the region. If you’re looking for partner from the region, we - from ICTC Burgas, could connect any business looking for outsourcing opportunities with the appropriate local company and guarantee their efficiency and premium quality.
With the fast pace contemporary companies are developing, one of the main possessions a business can have are time, quality, and cost-effectiveness. That's what turns outsourcing company processes into a perfect solution for their needs. Doing so, however, European businesses have been torn between the high-cost onshore locations providing a high-quality service and the low-cost and too often low- quality offshore services. That's when Eastern Europe's balanced quality/price ratio became a game-changer.