IT firms spend more on outsourcing to central and eastern Europe

Expenditure on IT outsourcing in central and eastern Europe leaped to $3 billion (£1.5 billion) last year as firms focused on reducing costs, according to a new study.

Research by Ukrainian Hi-Tech Initiative suggests that firms are spending a comparable amount on IT outsourcing in the region to India, China and Russia.

Ukraine led the way in terms of market volume in the 16 examined countries, followed by Romania, Hungary, Poland and the Czech Republic.

Victor Maznyuk, president of the initiative, claimed the data would allow small and medium-sized business enterprises to make an informed decision when deciding where to outsource their IT services.

Recent research by TPI shows a 20 per cent rise in the value of overall IT outsourcing contracts during the first three months of 2008. This comes after Forrester Research valued the UK industry at £3.8 billion in 2007, a £1 billion year-on-year increase on the corresponding figures for 2006.

Posted on: 2008-05-07, in: Hardware

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