This presentation explains the difference between IT outsourcing destinations and introduces Central Eastern Europe locations, outsourcing companies by volume and their benefits, and gives the tips on how to prepare for outsourcing and do it right.

1. HOW TO DO
IT OUTSOURCING RIGHT
AND BE SMART ABOUT IT

2. What is IT outsourcing?
IT outsourcing is the use of external service providers to effectively deliver IT-enabled business
process, application service and infrastructure solutions for business outcomes.
www.gartner.com/it-glossary/it-outsourcing/
Onshore
External teams in your country.
Nearshore
External teams in adjacent time zones, probably 2 - 3 hours ahead of you, 5 - 6
hours of flight.
In some countries there is no need for an entry visa for US citizen. English is not a
native language, but widely used in professional circles.
Offshore - CEE
External teams from the European region, 9 - 11 hours ahead of you, 8 - 9 hours of
flight. Visa-free entry for US citizen to all CEE countries, except for Russia. English is
not a native language, but widely used in professional circles.

3. Is there any difference?
Onshore Nearshore Offshore to CEE
■ Same language
■ Quick on-demand meetings
■ Modest travel expenses
■ Rates are lower
■ A “global” business day is
2 - 3 hours longer
■ You can access a wider
talent pool
■ Talent shortage
■ Local rates
■ Where are their developers?
Reasons to work locally
What to consider
■ Higher travel expenses
■ Lack of face to face communication
■ More project documentation
required
■ Virtual stand up meetings
What to consider
■ Rates are lower
■ A “global” business day is
8 - 11 hours longer
■ You can access a wider
talent pool
■ Higher travel expenses
■ Lack of face to face communication
■ More project documentation
required
■ Virtual stand up meetings
■ Longer business hours required
■ Considerably more online
communication
What to consider
Reasons to outsource Reasons to outsource

4. CEE locations & How to get there
75,000UA
53,000BY
18,000BG
80,000HU
65,000RO
63,000CZ
162,000PL
ITC industry size,
people

5. What to expect from CEE IT companies
■ 100% fit to US and Western Europe business culture
■ Project rates are roughly between $15 and
$55 per hour; up to 20% discount on rates
for 6+ months assignments
■ English is the primary language for business communication
■ Established CEE IT companies have development
offices across the region to maximize access to talent
pool
■ Engagement models are fixed price,
T&M as well as dedicated teams
■ Proactivity. They will challenge any technical brief to
make sure it describes an optimal solution.
■ IT companies formed IT associations within each CEE
country as well as global associations to lobby industry
interests
■ IT industry faces strong government support
and tax reductions in many CEE locations to
boost the industry growth

6. Technology stack in CEE
Source: dou.ua, dev.by
Technologies in use

7. Technology stack in CEE
Source: dou.ua, dev.by
Professional satisfaction by technology

8. How to find a tech partner in CEE

9. Most common types of companies
■ global locations across CEE
■ U.S. and Western Europe presence
Enterprise level providers
Boutique agencies
Bottom feeders
Expected rates
$30 … $55
$25 … $40
$15 … $25
Stable but sometimes not flexible enough to work with SMB
■ 500+ employees
■ 10+ years in business
■ representative offices in the U.S.
■ process oriented, focus strong quality control
■ deliver on time and budget
Great choice for SMB, but charge higher rates in exchange for a deep understanding
of a business niche
■ 15 to 100 FTEs
■ strong industry and domain expertise
■ diverse technology stacks
■ no representation in US
■ no business continuity plans
■ roughly 0 - 3 years of experience
Risky ground at low rate, often with unrealistic deadlines
■ undocumented processes, no quality
control
■ project deliveries are not guaranteed

10. Organization readiness checklist
■ Do you have a clearly defined reason for outsourcing?
■ Is your company prepared for outsourcing?
■ Are you personally ready to work longer hours or off-hours?
■ Have you decided on an outsourcing location?
■ Have you decided on an outsourcing business model?
■ Do you have time and budget to travel to your preferred or key outsourcing
location?

11. Partner selection checklist
■ Do they have positive track records?
■ Do they have positive references?
■ Do they have the right technology expertise?
■ Do they show a long-term partnership approach?
■ Are they ready for a full vested involvement in the project development as your
business partner, not just as a third party developer?
■ Are they flexible enough to work under your processes? NB: sometimes you need
to be flexible and adopt the best practices, tools, and processes from their side.

12. TITLE TEXT
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