The document discusses factors that will influence the competitiveness of Eastern Europe in the future. It analyzes the current state of Eastern European countries and identifies promising sectors like tourism, agriculture, and IT that could drive future growth if countries invest in infrastructure and research. The future competitive Eastern European company is envisioned as operating globally in fields like outsourcing, telecommunications, and IT services while emphasizing a diverse, flexible workforce and organizational culture focused on collaboration and innovation.

1. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
Eastern Think Tank
USE THE SOURCES TO OUTSOURCE. A FUTURE
COMPETITIVE EASTERN EUROPE
-Ukraine-
Team Leader : Paula Vaida
Team Members:
Madalina Elena Barcar (Romania, The Bucharest Academy of Economic
Studies)
Joao Saracho de Almeida (Portugal, Universidade Lusofona do Porto)
Paula Vaida (Romania, The Bucharest Academy of Economic Studies)

2. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
The Eastern Europe represents the former socialist world which led to a local misalignment between the economic
and political institutions. The Eastern European countries that are currently developing are facing the economic
crisis at different paces therefore, suffering from strong restructuring regarding the industry, the education, the
politics and institutions. Though, cheap and qualified labor force, abundance of natural resources and easy-to-
adapt-to cultures are favorable to achieving economic competitiveness and elasticity.
Table 1: Eastern Europe countries: the Global Competitiveness Index 2012- General economic conditions in Eastern Europe
2013¹
Overall Index Basic Efficiency Innovation and
(Global level) requirements enhancers Sophistication Infrastructure: the need
Factors for reforms and
Country/Economy* Rank Score Rank Score Rank Score Rank Score investments (railways,
Estonia 34 4.64 26 5.47 31 4.63 33 4.06 highways, airports)
Czech Republic 39 4.51 44 4.89 34 4.59 32 4.13 Security and Defence:
Poland 41 4.46 61 4.66 28 4.69 61 3.66 some of the EE Energy and resources:
Turkey 43 4.45 57 4.75 42 4.42 50 3.79 countries are members RENEWABLE-
Lithuania 45 4.41 49 4.84 46 4.38 47 3.83 of NATO; high levels biomass and
Latvia 55 4.35 54 4.79 48 4.37 68 3.57
of defense expenditure hydropower;
annually NUCLEAR; SHALE
Slovenia 56 4.34 39 5.05 55 4.25 36 4.02
Hungary 60 4.30 55 4.78 52 4.32 58 3.68 GAS
Bulgaria 62 4.27 65 4.63 59 4.18 97 3.30
Russian Federation 67 4.20 53 4.79 54 4.26 108 3.16 Eastern Europe²
Slovak Republic 71 4.14 62 4.64 51 4.33 74 3.50
Montenegro 72 4.14 74 4.49 74 3.99 69 3.57
Ukraine 73 4.14 79 4.35 65 4.11 79 3.43 Retail: this sector is
Romania 78 4.07 90 4.22 64 4.12 106 3.20 depending on the Financial services:
Macedonia 80 4.04 71 4.52 84 3.85 110 3.13 general macro Russia has the greatest
Croatia 81 4.04 60 4.68 72 4.01 83 3.39 economic situation number of banks in
Moldova 87 3.94 93 4.16 99 3.71 131 2.85 Europe
Bosnia and 88 3.93 81 4.33 97 3.75 99 3.28
Herzegovina
Business Process
Albania 89 3.91 87 4.24 92 3.80 113 3.11
Outsourcing: EE is
Serbia 95 3.87 95 4.15 88 3.83 124 2.96 the first destination
*Apart from Belarus and Kosovo for outsourcing
services
1 Allurentis Ltd., Emerging Europe – Central and Eastern Europe 2012|2013,
http://www.ukti.gov.uk/download/423761_175400/Emerging%20Europe:%20Central%20&%20Eastern%20Europe%202012-2013.pdf.html , Date of access:
19.02.2013, 10:27 AM
2 World Economic Forum,The Global Competitiveness Report 2012-2013, http://reports.weforum.org/global-competitiveness-report-2012-2013/, Date of
access:18.02.2013, 9:43 PM

3. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
Investing in Ukraine?
Strengths:
great ferrous and non-
ferrous metal industry,
producing cast iron, steel
and pipes
 natural resources:
mineral deposits, shale gas
(3rd place in Europe),
hydro electricity
 competitive sectors:
textiles, food-processing,
agribusiness, engineering,
communication,
pharmaceuticals
low-cost professional
labor force
strategic location
 oil exploration
Weaknesses:
 institutions: lack of
organization, bureaucracy,
corruption
new high-tech industries
are slowly emerging
 regulatory burden
professionals leaving
for the Western conditions

4. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
Prof. Viorel Mionel, The Bucharest Academy of Economic Studies
Weaknesses Opportunities Future competitive sectors:
MANDATORY REQUIREMENT to
becoming competitive => investing in
infrastructure and R&D
• Tourism. All kinds of touristic
activities can be developed in Eastern
Europe
•Agriculture. Large investments in
automatizing, the existing irrigation
infrastructure, proper climates and
extensive lands.
• IT and high-tech industries.

5. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank

6. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
IT? Telecomunications? Technology?
Finance?
Analysing the Eurostat Report on the graduaters by
field, it can be observed that people, regardless to the
country of origin, are focused on areas such as
business, social sciences and law. As we know, the
western countries (i.e. Developed countries) are
competitive in launching real professionals in areas
such as those named, while the future needs IT
specialists and programmers to develop a high
productive and sustainable world...And this represents
the core of Eastern Europe’s becoming competitive
challenge...
COMPETIT
IVENESS
ACHIEVED
IT/COMPU
TING/ENGI
NEERING/
FINANCE
QUALIFIED
HUMAN
RESOURCES
Table 2: Percentage of graduates by field
Source: Eurostat, http://epp.eurostat.ec.europa.eu/statistics_explained/index.php?title=File:Percentage_of_graduates_by_field.PNG&filetimestamp=20111017134423,
Date of access: 25.02.2013

7. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
The Future Company in Eastern Europe. 2022
• Multinational companiesGlobal
companies (mainly listed
companies with a large number of
Size shareholders)
Future emerging companies=>
• BPO/Outsourcing: bilateral benefits
oursourcing company-client company
• Telecomunications: a world wide band to ease • Cultural diversity among
employees
the communication at all levels
• Unique organizational cultures
• IT services: IT companies will be the solution People
for any company to develop in the future
• Industry based-on companies: eco-friendly
energy, shale gas exploitation, uranium
industry •“Tacit” Activities¹ (collaborative,
complex problems solving) will take
the place of hierarchy
•Fluid communication, the innovation
Organization will be encouraged, balance between
new-old management school
Sustainable emerging companies
¹ The McKinsey Quarterly, http://gotimpact.com/press/competitive_interactions.pdf, Date of access 26.02.2013

8. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
There are different ways of
interaction between companies and the rest of the
world. From a more classified angle, we can say
that there is also a major difference between :
- between them and the (possible) customers. - of these companies with other partner companies.
Here we have: Here we have:
a)Media and publicity/marketing (forums, social a)Specialists (negotiators, attorneys)
networks, commercials, banners etc.) b)Suppliers (industry and strategic partners)
b)CSR activities (concern for the environment) c)Marketing
c)Customer service ( websites, phone service, in-person d)Acquisitions and mergers
visits) e)Opening new subsidiaries
d)Partnerships with other companies
e)Opening new subsidiaries

9. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
Leadership
Unique values
of the future
company
Supplier
development

10. The Future of Work: Competitiveness of Eastern Europe| The Eastern Think Tank
Future
EE The future Eastern European
Company company will have as important
sectors:
- Human Resources
- IT Department
- Research and Development
- Marketing
IT R&D