Registration for East European High Tech IT Professionals

Global Demand for IT Services

March 30, 2009

It is hard to beat the global market when considering where to go for cost-efficient, high quality IT services.  Obviously, labor overseas is cheaper than in the United States or in major European business centers.  Indeed, American laborers with IT skills have expressed concern about the drain of jobs to India, Malaysia and Eastern Europe.  But the truth of the matter is that cheap labor is only one of the reasons American and European executives look overseas for their IT needs.  Even when jobs are created within the United States, American executives have trouble finding local candidates with the necessary skills.  A decrease in US college graduates with degrees in engineering and computer science means that there are simply not that many Americans qualified to do the job.

This is not the case in offshore IT hubs such as India, China, Russia and Eastern Europe where thousands of highly skilled computer engineers and programmers graduate each year.  As global demand for IT services increases, there is no shortage of hi-tech staff offshore.  India is still the giant of offshore IT services, although the global market is slowly shifting.  With salaries in Bangalore increasing 14 to 17 percent, executives are looking elsewhere for reliable service.  The CEO of a Boston systems integration firm, for example, ended up choosing an offshore IT company in Bucharest, Romania.  Moving his IT services offshore cut costs for the company by 60 to 75 percent.  But in addition to cutting costs, there were practical advantages to choosing Romania.  There were fewer difficulties with language (the Romanian IT workers spoke fluent French and English) and the European time zone made it easier for the American company to coordinate with their offshore department.  With wages in Eastern Europe remaining at a steadier rate than in Bangalore, we may continue to see this trend away from India and toward Eastern Europe

The global demand for offshore IT workers continues to be high even in the current economy.  American and European businesses are working overtime to cut costs and keep their company technologically efficient.  The IT freelancers who are most in demand have skills such as project management, business analysis, communications and bilingual ability.  A company’s decision to outsource its IT needs allows the company to focus on innovation and revenue generating activities.  IT workers are only used as needed and so a company does not have to incur the cost of keeping someone continually on staff.  Moreover, since offshore IT work is project-based, a company can make sure that it hires staff whose skills and experience are specifically suited to the task at hand.  This saves time, money and ultimately ensures a more sophisticated, tailored result. 



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