IT companies plug into Eastern Europe- The Economic Times
SOFTWARE
/photo.cms?msid=27963949
Monday, March 7, 2005| Updated at 14:25hrs IST
Searchin
Indiatimes>The Economic Times> News By Industry > Infotech> Software> Article
Home
News
News By Industry
Auto
Cons. Products
Energy
Finance / Insurance
Healthcare / Biotech
Ind'l Goods / Svs
Infotech
Hardware
Software
Internet & Online
ITeS
Telecom
Media / Entertainment
Services
Telecom
Transportation
Companies A-Z
Economy
Politics/Nation
International Business
ET Headlines
Most Read Articles
Money Matters
Mutual Funds
Insurance
Savings Centre
Loan Centre
Credit Cards
Tax Centre
Markets
Stocks
Forex
Debt / Money
Commodities
Hot Links
RSS feeds
Business Families
BPO
Jobs
Cars
Earnings
ET Hindi
Law
Corporate Law
Tax Law
Business Law
Personal Law
Property Law
Notifications
Magazines
The Sunday ET
Big Bucks: Inv. Guide
Brand Equity
Corporate Dossier
ET Travel
Financial Times
Strategic Marketing
Gen. Mgmt. Review
Times b2b
For NRIs
India on Mobile
Remit2India
Opinion
Columnists
Editorial
Letters to Editor
Services
Tenders
Portfolio Tracker
Portfolio in Email
Expert Aid
Invest Online
Archives
Transact
Medianet
E-Commerce
Web Solutions
Auctions
Shopping
Classifieds
Travel Booking

Loyalty Logo
to win great prizes
IT companies plug into Eastern EuropeAdd to Clippings
K YATISH RAJAWAT

TIMES NEWS NETWORK
[ SATURDAY, DECEMBER 04, 2004 12:11:03 AM]
MUMBAI: Traditionally, China is seen as the main competitor, as well as a huge opportunity, for Indian software services companies.

However, East Europe has also emerged as a source of potential threat and opportunity for the Indian software industry. In fact, after China, Indian companies are busy chalking out their strategy for East Europe.

Countries in East Europe have good educational infrastructure and language skills, which make the region an ideal launch pad for tapping opportunities in the rest of Europe.

At present, the Indian software industry depends heavily on its customer base in the US. While Western Europe is an equally big IT market, it has been difficult to tap, due to multiple languages and cultural issues.

Moreover, European companies are not used to outsourcing their IT or BPO requirements, quite unlike their US counterparts. The lack of an outsourcing mindset in Europe makes it more difficult for Indian companies to take this work offshore.

Besides the language disadvantage, it is also difficult to get temporary work permits or visas in Europe. European unions are very conscious of immigrant workers and do not give an easy entry to visitors who want to work. This makes things difficult for software services companies, which need a certain number of employees to be located at the customer’s premises (onsite in the industry jargon).

That is why East Europe is becoming the gateway for entry into the European Union. Countries in Eastern Europe are emerging as a popular destination for Indian companies to set up development and sales centres for servicing the whole of Europe.

Says Kees Ninenjuis, vice president (Europe), Wipro, “Eastern Europe has high-skilled resources with language capabilities but the labour arbitrage is limited and will reduce over the next few years.

Countries in Eastern Europe that are seeing increasing near-shore activity are Hungary, Romania and Poland. Hungary is aligned to the German, Austrian and Swiss markets, while Romania is aligned to the French market due to language and cultural affinities.”

Moreover, countries like the Czech Republic, Hungary, Poland, Belarus, Romania and Ukraine have good education infrastructure with strong mathematical and computer skills.

Hungary has the highest number of Field medal winners in mathematics, the equivalent of a Nobel prize. Industry expertise and application management skills are poor in these countries, but they are acquiring these skills. Some programming and embedded software skills are much better in East European countries as compared to India.

Some Indian companies have recognised this advantage and are setting up development centres there. Satyam Computers has recently set up one in Hungary. Keshab Panda, head of Satyam’s European operations says, “East Europe can be utilised as a near-shore centre for targeting West European customers.”
Continued...1|2|Next >>

 Print this article  Mail this article  Comment on this article
RATE THIS ARTICLE
12345
1=Poor, 3=Average, 5=Outstanding
............................................................


COMMENTS ON THIS ARTICLE
No comment has been posted for this article yet.




SOFTWARE
HEADLINES
Infosys wins brand name case
Infosys GEC inaugurated
Synergy logs into City's network to tap Indian market
IT firm Servion to offer expertise in CTI
Focus on quality, not cost cutting: Karnik
Are you a part of this virtual party?
For investors, it's 'Go for India'
Techspan to invest $16 mn in India by June
Hero Mindmine to launch IT training products
MS to extend cash grants for ICT centres
TOP
About Us| For reprint rights:Times Syndication Service
Copyright © 2005 Times Internet Limited. All rights reserved. |Advertise with Us| Careers @ TIL| Terms of Use| Privacy Policy| Feedback| Sitemap