Tagliabue The Eastern Bloc of Outsourcing

Tagliabue The Eastern Bloc of Outsourcing - Tagliabue, The...

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Tagliabue, The Eastern Bloc of Outsourcing, NYT, Nov. 2009. “Eastern Europe Becomes a Center for Outsourcing.” By John Tagliabue PRAGUE — Fillip Pejfar works in a sparkling new office tower here on the western edge of the Czech capital, using high-resolution scanners to enter accounting material into the computing systems of Accenture , the global business consulting group. Mr. Pejfar’s bookkeeping is not helping Czech clients. His expertise is meant for companies like the French chemical giant Rhodia and the big German software group SAP . Prague is turning into a center for outsourcing white-collar jobs like bookkeeping, data crunching and even research and development. The Czech Republic and other Central European countries like Poland, Hungary and Slovakia are clamoring to serve the needs of multinational corporations — and themselves. The United States may turn to India to fill many of its call-center jobs and the like. But Western Europe is turning more frequently these days to its own backyard, transforming a few urban centers of the former Communist bloc into the Bangalores of Europe. American companies are cashing in as well. In recent years, I.B.M. , Dell and Morgan Stanley , among others, have outsourced services to Eastern Europe, or helped other American companies do so. To be sure, Eastern Europe, with an outsourcing business estimated at about $2 billion this year, represents just a fraction of the global outsourcing market, estimated this year at nearly $386 billion. But Robert H. Brown, an outsourcing analyst at Gartner Dataquest, expects growth in Eastern Europe to outstrip the rest of the market in the next four years, expanding close to 30 percent by 2010, compared with 25 percent for the global market. What is unusual about Eastern and Central Europe is that their most advanced cities offer a potent mix of attributes that even Bangalore cannot rival: a highly educated, multilingual pool of talent in an increasingly affluent consumer market — all barely a stone’s throw from its prime clients. Outsourcing is booming as this region moves more quickly to integrate itself economically with its more affluent neighbors to the west, reflecting progress that is reducing the high unemployment that plagued these countries for years after the fall of the Berlin Wall and the collapse of the Soviet empire. It is also feeding a real estate boom in high-rise office space. Despite high unemployment in
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This note was uploaded on 04/23/2010 for the course FINA 8645 taught by Professor Smith during the Spring '10 term at Rensselaer Polytechnic Institute.

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Tagliabue The Eastern Bloc of Outsourcing - Tagliabue, The...

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