IT sector remains one of the fastest growing industries, especially in the field of software engineering. The industry requires more and more talented and educated labor, that the countries in which the industry is located can’t provide. Outsourcing these jobs to faraway markets has proven ineffective for numerous reasons, so companies are turning to Eastern Europe to find high quality IT workers. This process is known as nearshoring and it is beneficial to both the companies and the workers.
Why Eastern Europe?
Former Soviet bloc has put a lot emphasis on technical education and it still shows. The whole region has highly qualified and educated IT specials that can work as well or even better than their western colleges.
Companies that have tried to ship their business to India or China have had difficulties with corporate culture. Work attitude in these countries is mostly focused on processes and isn’t always compatible with a more corporate model in the west (Eastern European IT specials are willing to ask questions and provide their own point of view , not just on technical aspects of the products but on commercial ones as well).
European legislation regarding Data protection is pretty unison, so you can work with sensitive information and not worry about possible breaches or intellectual property violations. And finally if you want to visit your team or assemble it on short notice you don’t have to worry about long trips or time zones.
Where in Eastern Europe?
Cultural landscape of Eastern Europe is pretty diverse, but when it comes to IT, there really isn’t that much of difference – the quality of work and level of expertise is pretty similar. For companies like NSM Engineering nearshoring was a way to establish high quality hubs in Serbia and Romania. These countries are also a great market for jobs in customer support, technical support, customer service and social media services.
Bulgaria and Ukraine are also becoming increasingly interesting for IT companies looking to nearshore their services. Work hours in these countries partially overlap with the US, money is easily and safely transferable and there is a growing pool of skilled labor. Need for this kind of accommodation is not restricted to big IT companies, they are also necessary for increasing number of startups – most of which soon become parts of larger and established companies.
What are the benefits for the employees?
Most obvious benefits for nearshoring teams are about high salaries – even with the cost reduction that nearshoring entails for the company. In east European countries IT salaries are way beyond their national average. Also working conditions are usually very flexible. Remote teams are being judge based on the quality of their work and the amount of time they put in. This allows employees to create their own working routines and carve out time for their families and hobbies as they see fit. In nearshoring companies there is far less burn out than in those who are outsourced overseas. Most of the burn out happens because of the different working hours and not because of the amount of work itself. This is avoided in Eastern Europe, because working house and work ethics are similar to those in the West.
Nearshoring is becoming a valuable alternative to outsourcing for a variety of IT and engineering businesses. Complementary regulations regarding the industry, growing markets in that part of the world and high skilled labor are a great allure for the companies. Good salaries and opportunity to work for the best in the industry attract the workers. It seems to be a mutually beneficial relationship that’s only going to expand in the future.