Quality Vs Quantity – Near-shoring to Eastern Europe

February 3, 2015

“Nearshoring” – the business of moving production, research and business processes to countries that are quite cheap and very close, rather than very cheap and far away” Wikipedia 2013.

While Eastern Europe cannot begin to compete on cost or quantity, when ease of management, location and most importantly operational culture are factored in, this destination begins to look like a strong competitor. The next section will look at 5 good reasons to nearshore to Eastern Europe, examining the talent pool, cultural similarities, time zones, low attrition rates and data protection.

1. The Talent Pool

The higher education institutions and comprehensive schools that formed the base of educational systems in former Soviet Union countries were mainly focused on engineering specialties. This legacy, and the presence of strong science schools, has fueled the rapid increase in the number of companies providing IT outsourcing and software development in the CEE region. Educational systems in CEE countries are improving on their already strong focus on fundamental engineering education. In terms of the number of certified IT specialists, Romania is the leader in Europe, and sixth in the world, with density rates per 1,000 inhabitants greater than the US or Russia.

2. Cultural Similarities

Business culture is much closer to that of America and Western Europe and that isn’t just a similar sense of humour and a fondness for a beer on a Friday evening! Eastern Europeans in general, are good at understanding the requirements beyond those set out in the project specification as well as being able to adapt quickly and flexibly to changing business needs. Eastern Europeans will tell you how to do things better and will not be afraid to debate with a client on technical solutions.

3. Time Zones

Eastern Europe covers a vast region, but most of the countries within it are just a couple of hours away from the UK in terms of time difference. Locality and time zone offers a distinct advantage when you take into account 6 hours of synergy in working hours during which home and away teams can collaborate, plus face to face meetings when necessary are a “low-cost” flight away.

4. Low Attrition Rates

Contrary to the scaremongering in the press, most Eastern Europeans are family orientated and happy to stay at home as long as they have access to stable well paid employment. When the work on offer is of an appropriate level, the approach is collaborative, and talent is recognized, workers feel a high sense of achievement which results in less movement between organisations.

5. Data Protection

Eastern European countries within the EU are a good choice for work which requires adherence to the Data Protection Act. When personal data processing is involved it is important to choose a destination which has adopted the EU directive 3002/58/.