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outsourcing in Europe

Outsourcing trends in Europe

Nearshore outsourcing is still on the rise. More and more companies realize that the advantages can help make their businesses move forward. Because of that popularity, the outsourcing business in Eastern Europe has developed into a real business and certain trends have popped up recently.

Trends in outsourcing: a top 5

1. Outsourcing destinations

While outsourcing is often associated with India and other countries in Asia, nearshoring is setting a new standard. The advantages of having a remote team that is closer to home and crosses fewer time zones is setting the first trend in the outsourcing industry. There are advantages in keeping a remote team as close to home as possible, but the Central and Eastern European countries are interesting because of their lower wages and skilled IT profiles.

2. A shift in contracts and projects

When outsourcing emerged at first, it was mostly used for large projects. Companies considered the set-up of a remote team too much of an effort to invest in small projects. Over the years, however, they discovered the advantages and the further development of the nearshoring market has created an interesting environment that allows for smaller projects to be outsourced.

Besides that, we can also detect a further specialization in various IT profiles that answer the needs of the outsourced projects. The CEE is investing in education to answer the needs of outsourcing companies, which has caused for specialization levels that are otherwise hardly found.

3. Maturing of the nearshore outsourcing market

The outsourcing market is maturing: more and more companies are finding talent abroad, which causes for these countries to prepare themselves and answer the needs of these companies. The maturing of the market comes with specialization but also standardization: it is not the first time remote teams are being set up. The experience with working as a remote team is developing and it creates a larger maturity compared to 5 years ago.

4. Specialization: the experimental projects are coming

When it comes to outsourcing, companies think they can only outsource their back-office development and maintenance for example. And still… Because of investments the Eastern European countries have made in education, they provide the necessary means to outsource experimental projects and guarantee quality in doing so.

More often now than before, companies are trying new projects with their remote teams, because it provides the same advantages as other outsourced projects and allows them to further grow as a business without affecting daily business.

5. Outsourcing is no longer a bad thing

Finally, Northern Europe is opening up to outsourcing. The negative stain to the word is slowly disappearing as established businesses like Uber and Snapchat are talking about outsourcing to develop their IT departments. Practice has shown that it works and more companies are trying to find solutions for the lack of IT talent in their own countries.

Are you thinking about outsourcing too? Contact us and discover the possibilities to help your business grow.