Eastern European outsourcing companies are now looking for business in the EU because of the declining US dollar.

It is no longer economical for both the US and Eastern European countries to do business with each other. Rising costs have turned away US companies that outsource to keep business costs down. Similarly, shrinking margins have made Eastern European countries look elsewhere for profit.

Steve Keil, chief executive at software outsourcing consultancy Sciant, said, "Faced with this and the escalating costs of keeping their IT experts, eastern European IT outsourcing companies will have to move their operations up-market, work closer with EU customers, or die."

Keil listed the advantages of EU clients outsourcing to Eastern Europe vendors. According to Keil, the workforce is highly skilled and considerably cheaper, vendors and clients are only a two-hour flight or two time zones away, and Eastern European suppliers are culturally closer than other options. "This makes life easier for building a good business relationship," he said.

Additionally, he predicted that US companies would also move out of the Indian outsourcing field because of rising costs in the country. Because of this, "...some of the smaller Indian outsourcing companies are trying to form business partnerships with Eastern European companies as a way of breaking into the EU," Keil said.