Outsourcing in Eastern Europe

Companies in the West are going East in search of outsourcing locations. During the previous decade, U.S. and West European companies looking for a low-cost manufacturing base elsewhere have made investments in countries like Poland and Hungary. But as these countries have become more industrialized, they have reinvented the outsourcing wheel and shifted work to Central European countries like Romania, Russia or Ukraine.

It was actually Hungary who led the outsourcing wave towards Central Europe, having invested nearly $3 billion in countries like Romania and Ukraine. There are about 4,000 Hungarian-owned companies in Romania, a third of them catering to outsourcing. Meanwhile, smaller Polish companies have been making modest investments as well in Romania and Russia.

Source:www.time.com