Eastern Europe to Challenge Asia in Outsourcing

Filed in archive Outsourcing News on February 19, 2005

As offshore outsourcing grows in the next three years, Eastern European countries like the Czech Republic and Poland will challenge India and China as the leading destinations for outsourcing.

In a study by the Economist Intelligence Unit (EIU), the Czech Republic is the third most attractive offshoring destination, while Poland ranks at fifth place. Asian countries dominate the top five outsourcing destinations with India as the world's outsourcing hub, China in second place, and Singapore in fourth place.

The study's ranking considered factors such as labor costs, skills, regulation, and political and economic security.

India is the leading destination for outsourcing because of its low-cost, English proficient labor and developed legal system. China is in second place due to the country's English Deficiency. However, it redeems itself by having a sizeable low-cost labor pool.

The EIU predicted that Eastern European countries would garner more outsourcing business due to their "attractive regulatory environment and close proximity and cultural ties to Europe."