Outsourcing Virtual Division

Thomas L. Friedman wrote a book titled: “the World is flat” in which he describes the

changes that have taken place in the last 20 years since the invention of the Internet (2005).

He focuses on the emergence of outsourcing industry. A Booz Allen Hamilton study shows

that the market for IT outsourcing will grow from $62 billion in 2010 to at least $150 billion

by 2020. The IT outsourcing market continues to be strong, with 72 percent of large

companies currently outsourcing at least one function (Dhar, S. and Balakrishnan, B. 2006).

Barthelemy (2001) in his research paper on „Hidden costs of outsourcing‟ finds that number

one hidden cost is „vendor search and contracting„ and he says that: “Many entrepreneurs

underestimate the expense to identify and evaluate suitable IT vendors” and that “Companies

incur such costs without spending the first dollar on the actual work”(2001: 61). Virtual

Division can help to eliminate possible mistakes very early in the process of looking for IT

outsourcing partners with their free service available IT outsourcing Poland.

It is important to understand what are company‟s expectations from IT outsourcing. In most

cases high on the list are: cost reduction, improved operational inefficiencies, and improved

stability/effectiveness of IT. For a number of years, Eastern Europe has been growing as the

top destination for IT outsourcing. The legacy of the former Soviet Union country‟s

engineering-based education system has fuelled a rapid increase in the number of companies

providing IT outsourcing and software development services in the region, according to the

Central and Eastern Europe Outsourcing Review 2010.

Pricing and knowledge are very important in choice of the location to outsource to, but what

becomes visible is that inter-cultural differences are also important. As the people think

differently, have different norms and valued and talk in different languages. Companies must

be aware of certain threats while outsourcing or find the closest cultural match. Again,

Eastern European countries have come closer to the Western European culture, mainly

because of the membership in the EU.

Our suggestion is to evaluate IT outsourcing companies in Poland, especially if you are

looking for premium outsourcing services such as: SAP, embedded systems, systems

administration, etc.

To summarise, to find the best location might be the key to success. This success in IT

outsourcing is badly needed according to a Price Waterhouse Coopers 2007 global

outsourcing survey, 69% of outsourcing deals fail, in whole or part. Some of the reasons for

that might be that: “The average company only spends about 2% of the value of its

outsourcing contracts to manage its relationship with the outsource provider” (Corbett,

2004:148).

Virtual Division is a company that enables IT outsourcing companies from Eastern Europe to

avail of marketing and lead generation services while also helping companies in Ireland, the

UK, the Netherlands, France and Germany and the US to find the best match between them

and one of the 20 IT outsourcing companies from Eastern Europe Virtual Division represents.

For more information about IT outsourcing Eastern Europe visit our website.