The Bangalore Experience Goes Baltic

By Indrajit Basu

Asia Times, a leading business newspaper covering the region, devotes a feature article to the recent trend of outsourcing projects moving from India to Eastern Europe.

"What is unusual about this trend," writes the paper, "is that even as costs in Eastern and Central European countries are relatively high and human resources are still scant compared to their Asian counterparts, something other than cost savings is driving companies to the region." The article goes on to quote Alexei Miller, Executive Vice President at DataArt:

"There has been a significant shift in the outsourcing strategies that many companies are adopting lately," said Alexei Miller, executive vice president of Data Art, a provider of high-end software outsourcing services for small and medium-scale enterprises. Although Data Art is headquartered in New York, it runs its development center in St Petersburg, Russia, and also maintains an office in London, a market that according to Miller contributes almost 50% to his company's total revenues because Data Art can serve from Eastern Europe.

"Outsourcing from India has been the mainstay for many smaller and medium companies globally. And in the last five years there have been many success stories, but many negative stories as well," said Miller. "The current realization is that if you want to strike value out of an outsourcing relationship, you have to think deeper and look beyond India to get something else. And that something else cannot come from one location but from many locations and from many vendors."

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