EU should take advantage of nearshore IT outsourcing

30 Apr 200464 Views

Developed Western European nations should take advantage of nearshore IT outsourcing opportunities in eastern countries like the Ukraine and Belarus, a leading expert on European enlargement told Irish IT executives this week.

Hans-Juergen Zahorka, a former member of the European Parliament, works with the Stuggart based LIBERTAS European Institute, a European economy think-tank. He teaches European Affairs at MBA schools and universities of applied science in Germany, Switzerland, Poland and Belarus. As a noted observer of EU policy, he has consulted widely on EU enlargement.

As a keynote speaker at this week’s ICT Expo in Dublin’s RDS, Zahorka said that European nations should accept IT outsourcing as a business reality, forget thinking of Central and Eastern European countries as a threat and take advantage of opportunities in these countries. “A senior, highly skilled IT worker costs only €5 an hour in the Ukraine. They are hungry for this work and are very professional,” he urged.

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“At present a lot of focus is on India and Malaysia for low cost IT outsourcing. It is very popular as a business strategy. But remember it can be done much closer,” he said.

Zahorka also urged developed countries like Ireland to partake more in R&D and technology transfer with the accession states, citing the example of Irish tax consultants working with entrant countries. “There’s a lot of work to be done in the areas of e-procurement and e-government in these countries,” Zahorka urged.

By John Kennedy