Eastern Europe Becomes a Center for Outsourcing

Be careful what you wish for, goes the old saying. People in Western Europe once grumbled about immigrants from Eastern Europe seeking work. But instead of people moving about, more Western European firms shift jobs to Eastern Europe, reports journalist John Tagliabue in “The New York Times.” The global outsourcing market is worth almost $400 billion this year. Eastern European nations like the Czech Republic now hold less than 1 percent of that market, but seek to take on a greater share by performing data-entry, finance, information-technology and research-and-development tasks for major multinational firms throughout Europe and beyond. Skilled employees in Hungary and the Czech Republic, multilingual and well educated, earn a quarter of what counterparts in Germany or France earn. The nations also offer simplified tax codes and subsidies for office construction, reports Tagliabue. The outsourcing market is quickly reducing unemployment for the region as well as reducing inequality between two parts of Europe. – YaleGlobal