The Rise of Nearshoring

While India and China are popular destinations for outsourcing, a new trend - “nearshoring” global business concerns to formerly Communist Eastern Europe is emerging. The premise is to move production, research and business to countries that may not be quite as cheap as India or China, but are still cheap and also much closer to home. Western concerns are finding multi-lingual workers and a more familiar cultural climate with which to engage. Eastern Europe appears more stable than ever and politics do not seem to be a stumbling block. There are, however, some drawbacks. The success of business depends to a large extent on the talent of middle managers and competency is a question in Eastern Europe. If the cultural climate is closer to Britain’s, for example, business standards do not always jibe. This is the legacy of communism coming into play, and it remains to be seen how effectively it can be overcome. Even in light of this fact, Eastern Europe is proving itself to be a surprising source of new opportunity for global business. – YaleGlobal