Where to outsource to: Eastern Europe or Asia?




There is no doubt that outsourcing is here to stay. Businesses large and small are submitting their non-essential tasks so they can focus on their core business. With the explosive arrival of the Internet, and lately of the mobile web, the world is getting smaller and smaller. Geography is less and less of a problem, and the global worker is emerging as a force to be reckoned with.

Two main destinations for the world’s outsourcing needs have emerged in the last decade: Eastern Europe and Southeast Asia. They both have their strengths and weaknesses, and knowing which one to choose could save you a lot of headaches down the road.

Outsourcing to Asia

The outsourcing industry in India alone is incredibly vast and growing. Add countries like Pakistan, Sri Lanka, the Philippines and there’s virtually no business need these professionals can’t absorb. The young population in these countries definitely helps too: the workers average 25 years old. Hundreds of universities across the country are turning over new waves of eager technicians each year.

Asia is definitely the tiger in the outsourcing “jungle”. As such, it can be unpredictable at times. Choosing the right people for the job from a group of millions is not a walk in the park, and risks abound at every step. The best way to do this is to start small and aim to build relationships with established outsourcing companies. Another thing to think about when considering Asia for your outsourcing needs is the time difference, which can be quite onerous for long-term projects. If your team and the outsourcing team can only communicate asynchronously, consider moving that time frame further.

Eastern Europe as a growing player in the outsourcing industry

Eastern European countries have come a long way over the past two decades. After struggling for twenty years through a difficult transition period out of the communist era, these countries are now willing and able to prove themselves in the global economy. Their inclusion in the European Union has also contributed to generating economic and political stability. Although corruption remains high, small businesses are growing steadily. A holdover from the communist era are strong educational institutions, resulting in a generation of well-prepared young technicians.

This is the background to the current outsourcing landscape in Eastern Europe, and opportunities to accept outsourced jobs abound. Compared to the vastness of Asia, Eastern Europe has far fewer numbers, but what it lacks in quantity, it definitely makes up for in quality. Workers in Eastern Europe are more experienced and better educated, while the companies they work for are more stable to work within the borders of the European Union. For Western European countries especially, proximity to Eastern Europe is definitely something to consider, given the cultural similarities as well as the very small time differences. Many Western European companies also take advantage of the proximity of the Eastern European workforce to bring in professionals for quick projects on site.

There is definitely no one-size-fits-all answer when considering where to outsource, but hopefully you can now make a more informed decision. Don’t let the negatives outweigh the positives though, you may be surprised at how much resources outsourcing can save for you.

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