Romania cheaper than India for British outsourcing: report

Friday, 12 September 2003, 19:30 IST
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LONDON: IT workers in Romania offer a cheaper alternative to outsourcing for British companies than those in India, according to a new market report. Romanian IT workers have fewer cultural differences than India, which makes Romania the first choice for outsourcing, the report says. A report by Pierre Audoin Consultants (PAC) says that Romania and other Eastern European countries are virtually ignored by British firms, but are predominantly the first outsourcing choice for the rest of Western Europe. The report, Offshore Romania 2003, claims that not only is the cost of using and providing IT services in Romania much cheaper than in India but the country is also home to an abundance of well-educated and highly skilled workers who have a better understanding of Western European culture than their Asian counterparts. Companies in the U.S. have also recently started considering Eastern Europe as a resource for outsourcing. Pete Foster, a research director at PAC, said the British use of India was largely driven by historical and cultural links to the country, but companies may be forced to look elsewhere, as skills and resources become scarcer and costs start to rise. "There is great competition for cost, and there is a view that India is getting more expensive. Europe represents a good opportunity and a new area to find resources-but it is virtually ignored by the U.K.," he told Business Week. The report said service providers could improve their competitive edge by acquiring resources and companies in Romania more cheaply than in India. Users could also benefit because they would buy comparable levels of IT service at a much lower cost. "(Romania) is the area of choice for everyone else in Europe," it said. "From the business point of view, it is quite backward compared to Western Europe and probably no better than the Indian and Asian alternatives. But it is arguably closer in cultural affinity. The language and education are good enough", Foster said.
Source: IANS
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