Wednesday, November 15, 2006
time to go east?
In April 2006 McKinsey (www.mckinsey.com) organised a conference on IT and business process offshoring possibilities in Eastern Europe. The summarising report is available for downloading here: http://www.mckinsey.com/locations/warsaw/officenews/pdfs/EESTCOM_report_final.pdf
The bottom line is:
- Eastern Europe is now only marginal BPO location (1% of global market)
- It has attractive risk/wage level ratio
- Has additional benefits for Western Europe, like: geographic, cultural, regulatory proximity and other languages than English
- Offshoring will likely create 100 000+ jobs
- There is enough talent supply, but in non-obvious locations
I would like to concentrate on no.5: non-obvious locations. Let's quote: “... to ensure adequate talent supply, companies should increasingly venture outside the “first wave” locations (such as Prague, Budapest, Bratislava and Kraków) into second and third wave locations with currently little or no offshoring activity.” And later, on page 17, Katowice is enumerated among those 2nd and 3rd wave locations, with the biggest number of talent supply.
