The move from Eastern Europe has begun

Apr 17, 2019

The cost is on the rise

Ukraine is under development and the prices are on the rise. This is going to be of great importance to the companies who are outsourcing IT-development tasks to Eastern Europe.

When the Nordic countries stated outsourcing to Eastern Europe it was the price rage that was the main factor. The low costs of IT-development made many companies look to Kiev, Vilnius and Kraków for cheap labor.

Unfortunately, the cost of IT-labor in Ukraine, for an example, is on the rise and has been for quite some years now. Moreover, the demand of developers is sky high. Therefore, the cost of a senior-developer has gained with 35% over the last 5 years.

We’re seeing an ongoing development in which many companies are moving their outsourcing from Eastern Europe to elsewhere. The move is happening because of the raising costs and for the hunt of qualified labor.

In our experience, the cost of a senior-programmer is 30% higher in Ukraine than in Egypt. In the city of Cairo, the labor wage developments been more moderate than in Asia and Eastern Europe.

 

A few things you should be aware of

If you are currently outsourcing IT-tasks to Eastern Europe, it might be wise to investigate your agreements with the locals. It´s important to estimate if your current situation is secure. You should investigate if you are paying too high a cost, and if you are employing the right people.

The Eastern European market is overheated, and it shows on the prize and the available candidates for a job. It is not uncommon to experience increasing costs several times a year, in which cases you will have to renegotiate with the developer or outsourcing agencies. It´s not only time-consuming – it’s expensive.

The raise of the costs are an example of supply and demand. The digital tasks in Eastern Europe are getting more and more. There aren’t enough of the skilled senior developers. The result, being you paying a higher cost than previously.

There aren’t enough skilled candidates to take on the tasks on hand. Ukraine are short of qualified labor in the IT-field. The society is undergoing digitalization in large scale which requires skilled it-specialists. In consequence, you will have less talent to choose from.

We are of course aware that we are somewhat biased in our approach of choosing outsourcing destinations. It is, however, mentionable, that several of our strong profiles in CrossWorkers have been working with Ukraine as outsourcing destinations previously. Therefore, it is not without experience we mention the ongoing changes in the market.

Moreover, you should be aware that many Eastern European IT-developers are employed on a freelance basis. Therefore, they do not have an employer to enforce GDPR compliance. It is possible for the software developer to familiarize themselves with the legislation, but no one will be inspecting the question.

 

A strong alternative

When a northern company is considering whether or not they should be outsourcing some of their it-resources, many questions come to mind. We are working for it-outsourcing with Nordic guarantee.

Years of experience with IT-outsourcing in the eastern part of Europe and Pakistan, has given us a qualified knowledge about choosing destinations. It is a conscious decision to be situated in Egypt. Moreover, we´re not unaffected to the fact that the time zones and travel time is advantageous for Scandinavians.

The years of it-outsourcing experience has giving us the knowledge to safely state that Cairo is a very strong alternative to Eastern Europe. The advantages of choosing Egypt as the outsourcing destination are plentiful.

One of the advantages is, that the wages in Egypt are not on as steep a climb as in Asia and Eastern Europe.

When you want the best qualified

Each year, around 50.000 IT-candidates graduate in the city of Cairo. CrossWorkers employ the best of them! We do all that we can to make our talented employees want to stay with us. We insure fair wages and good working conditions. Because of this, we´re very good at employing candidates for a long time.

According to our experience, the Egyptians are better educated, more motivated and eager to maintain their skills than many European IT-developers. Once you have created good mutual trust in cooperating with your Egyptian IT-developers, they will do their utmost to fulfill the required task, deadline or service. That´s why we know that the quality is top notch.

 

The move from Eastern Europe has begun

Apr 17, 2019

The cost is on the rise

Ukraine is under development and the prices are on the rise. This is going to be of great importance to the companies who are outsourcing IT-development tasks to Eastern Europe.

When the Nordic countries stated outsourcing to Eastern Europe it was the price rage that was the main factor. The low costs of IT-development made many companies look to Kiev, Vilnius and Kraków for cheap labor.

Unfortunately, the cost of IT-labor in Ukraine, for an example, is on the rise and has been for quite some years now. Moreover, the demand of developers is sky high. Therefore, the cost of a senior-developer has gained with 35% over the last 5 years.

We’re seeing an ongoing development in which many companies are moving their outsourcing from Eastern Europe to elsewhere. The move is happening because of the raising costs and for the hunt of qualified labor.

In our experience, the cost of a senior-programmer is 30% higher in Ukraine than in Egypt. In the city of Cairo, the labor wage developments been more moderate than in Asia and Eastern Europe.

 

A few things you should be aware of

If you are currently outsourcing IT-tasks to Eastern Europe, it might be wise to investigate your agreements with the locals. It´s important to estimate if your current situation is secure. You should investigate if you are paying too high a cost, and if you are employing the right people.

The Eastern European market is overheated, and it shows on the prize and the available candidates for a job. It is not uncommon to experience increasing costs several times a year, in which cases you will have to renegotiate with the developer or outsourcing agencies. It´s not only time-consuming – it’s expensive.

The raise of the costs are an example of supply and demand. The digital tasks in Eastern Europe are getting more and more. There aren’t enough of the skilled senior developers. The result, being you paying a higher cost than previously.

There aren’t enough skilled candidates to take on the tasks on hand. Ukraine are short of qualified labor in the IT-field. The society is undergoing digitalization in large scale which requires skilled it-specialists. In consequence, you will have less talent to choose from.

We are of course aware that we are somewhat biased in our approach of choosing outsourcing destinations. It is, however, mentionable, that several of our strong profiles in CrossWorkers have been working with Ukraine as outsourcing destinations previously. Therefore, it is not without experience we mention the ongoing changes in the market.

Moreover, you should be aware that many Eastern European IT-developers are employed on a freelance basis. Therefore, they do not have an employer to enforce GDPR compliance. It is possible for the software developer to familiarize themselves with the legislation, but no one will be inspecting the question.

 

A strong alternative

When a northern company is considering whether or not they should be outsourcing some of their it-resources, many questions come to mind. We are working for it-outsourcing with Nordic guarantee.

Years of experience with IT-outsourcing in the eastern part of Europe and Pakistan, has given us a qualified knowledge about choosing destinations. It is a conscious decision to be situated in Egypt. Moreover, we´re not unaffected to the fact that the time zones and travel time is advantageous for Scandinavians.

The years of it-outsourcing experience has giving us the knowledge to safely state that Cairo is a very strong alternative to Eastern Europe. The advantages of choosing Egypt as the outsourcing destination are plentiful.

 

One of the advantages is, that the wages in Egypt are not on as steep a climb as in Asia and Eastern Europe.

When you want the best qualified

Each year, around 50.000 IT-candidates graduate in the city of Cairo. CrossWorkers employ the best of them! We do all that we can to make our talented employees want to stay with us. We insure fair wages and good working conditions. Because of this, we´re very good at employing candidates for a long time.

According to our experience, the Egyptians are better educated, more motivated and eager to maintain their skills than many European IT-developers. Once you have created good mutual trust in cooperating with your Egyptian IT-developers, they will do their utmost to fulfill the required task, deadline or service. That´s why we know that the quality is top notch.

 

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