Offshoring/Nearshoring to New Shore: Central and Eastern Europe

Central and Eastern Europe’s accomplishment as an offshoring/nearshoring haven is affected by different elements. First off, joining of the European Union (EU) has tremendously increased CEE’s ground. The advantages of joining the EU are indicated in huge GDP (gross domestic product) and higher inward flow of FDI (foreign direct investment). The foreign direct investment (FDI) appeared to be one of the main backbones of offshoring/nearshoring to CEE, as the block transformed into an attractive haven for international investors going after expansion of their market and accessing low cost resources. This resulted in making CEE block a vital and crucial place for service offshoring/nearshoring. From the past record and statistics, IT related services has increased drastically with importation from Central and Eastern Europe into the rest of the EU countries. This shows that offshoring and nearshoring in CEE is imminent. The corresponding substance of the Central and Eastern Europe falls in back office operation or systems. The cultural connection or relation shared by providers and their customers in Central and Eastern Europe is essential for numerous business processes. Customers away from English speaking countries acknowledge and thankful to the prevalent language competence in CEE. The CEE has lots of other attributes that made it a spot for offshoring and nearshoring region, example of this are: cultural background, geographical locations, languages among the CEE countries, high level of education, poor income wage, cheap labor, very dependable macroeconomic factors: all of these contributed greatly to the unshakable potential, power or strong arm of the block. The purpose of this paper is to show the importance of offshoring/nearshoring and its increasing role in the CEE. And to examine how corporations in the CEE blocks attend to the problems and opportunities of offshoring/nearshoring. This paper will examine the advantages and disadvantages of offshoring and nearshoringBscManagement and Business AdministrationV