The Eastern European economy is developing fast, and the internal need for IT resources is increasing. This resolves in rising labor costs for those companies who have chosen to outsource their IT development to Eastern Europe.

Therefore recruitment is getting more difficult, and prices are increasing, which is not an optimal development for an IT Offshore destination.

When Western European companies began to outsource to Eastern Europe, the price was the decisive fact. The lower costs led many to find labor in Eastern European cities such as Kyiv, Vilnius, and Kraków, despite cultural and linguistic challenges.

We are seeing an ongoing development where many companies convert their outsourcing away from Eastern Europe to other places offering competitive prices and access to talent.  Our experience shows that a senior programmer’s cost in Ukraine is up to 60% higher than the cost of a senior programmer in Egypt. In Cairo, wage developments are more moderate than in Asia and Eastern Europe.

See how Con-Linq found their new IT developers in Cairo, Egypt

Con-Linq needed a team of IT developers with the right skills. Hear about their experience with creating a team in Cairo with Crossworkers. In the video you’ll also hear how the cooperation works between the offshore team and the company. 

What should you be aware of?
If you are outsourcing to Eastern Europe, it might be time to review agreements. The original reasons for choosing the Eastern European location good years back might have changed. The cultural readiness might as well have increased but so have the prices. The digitalization of Eastern European companies is running just as fast as we see in Western Europe, and the talent pool is running dry.  In other words, you might face the same challenge as in Western Europe – now just adding distance.

We are aware that our approach to outsourcing destinations has “been coloured” by our work in Egypt. However, CrossWorker’s extensive experience working with Eastern Europe from previous Eastern Europe and Pakistan operations is why we draw attention to the changes we see.

Also, in some countries, there is a tradition that many software developers are legally employed as independent contractors due to tax regulations. The relatively new GDPR creates a challenge for an EU-based customer to secure legal and practical GDPR compliance.

There is a strong alternative.
CrossWorkers offers IT outsourcing in Cairo with Scandinavian security.  We have many years of IT outsourcing experience to Eastern Europe and Pakistan, and we know that Cairo is a powerful alternative to Eastern Europe. It is a conscious choice that we choose Cairo to build the CrossWorkers ODC.

Every year, around 50,000 IT graduates graduate from the university in Cairo, and we have the best employees here at CrossWorkers! We do a lot to keep our talented graduates. We ensure that our employees have good working conditions and receive a competitive salary – which is why we are so good at keeping good employees. In addition to creating an attractive work environment, we invest in training our employees further.

How to choose the right offshore country
Best practice IT outsourcing
Steps to start working with a remote team
How we recruit IT personnel for our clients

Con-Linq needed a team of IT developers with the right skills. Hear about their experience with creating a team in Cairo with Crossworkers. In the video you’ll also hear how the cooperation works between the offshore team and the company. 

What should you be aware of?
If you are outsourcing to Eastern Europe, it might be time to review agreements.  The original reasons that chose location good years back might very well have changed.  The cultural readiness might very well have increased but so have the prices.  The Eastern European countries’ digitalization is running just as fast as we see in Western Europe, and the talent pool is running dry.  In other words, you might very well be getting into the same challenge as you are facing in Western Europe – now just adding distance.

We are aware that our approach to outsourcing destinations has “been colored” by our work in Egypt. However, CrossWorker’s extensive experience working with Eastern Europe from previous Eastern Europe and Pakistan operations is why we draw attention to the changes we see.

Also, in some countries, there is a tradition that many software developers are legally employed as independent contractors due to tax regulations. The relatively new GDPR creates a challenge for an EU-based customer to secure legal and practical GDPR compliance.

There is a strong alternative.
CrossWorkers offers IT outsourcing in Cairo with Scandinavian security.  We have many years of IT outsourcing experience to Eastern Europe and Pakistan, and we know that Cairo is a powerful alternative to Eastern Europe. It is a conscious choice that we choose Cairo to build the CrossWorkers ODC.

Every year, around 50,000 IT graduates graduate from the university in Cairo, and we have the best employees here at CrossWorkers! We do a lot to keep our talented graduates. We ensure that our employees have good working conditions and receive a competitive salary – which is why we are so good at keeping good employees. In addition to creating an attractive work environment, we invest in training our employees further.

How to choose the right offshore country
Best practice IT outsourcing
Steps to start working with a remote team
How we recruit IT personnel for our clients